Blockchain technology was used by the New Balance brand. The purpose of this action was to authenticate the company’s products. The guarantee of success of this operation is to support a cryptographic project called Cardano. It is a completely decentralized cryptographic project, which is based on open source software. An official announcement was issued on this matter. This was done by the company conducting Input Output Hong Kong (IOHG) research.
Input Output Hong Kong announces that New Balance will use blockchain Cardano
According to Charles Hoskinson, who is the CEO of IOHK, the American brand New Balance will benefit from the Cardano blockchain. The aim will be to increase the credibility of its existing and future customers.
Block chains facilitate access to verification of the reliability of the products that customers intend to purchase. It’s all about the origin and quality of the products.
Product authentication for such a well-known brand as New Balance can be considered a key element of the overall strategy. This is of great importance because of the huge amount of counterfeit products on sale. These are mainly clothing and footwear.
Growing popularity of blockchain technology among entrepreneurs
New Balance is not the only company interested in introducing blockchain technology into its supply chains. The popularity of this method is constantly growing, which can be seen in the growing number of companies interested in it.
The benefits of such a solution have recently been recognized by Walmart. It has developed its own blockchain-based food control and traceability system.
This technology is also used by Penfolds and the well-known supermarket – Carrefour.
A few words about Blockchain Cordano
The Cordano technology, which New Balance decided to use, is a decentralized and crypto-currency project. Its operation is based on open source software.
This project has one fundamental feature, which is openness. Thanks to this, almost everyone can contribute to its development. The only condition is to have appropriate competences and specialist knowledge. An additional attribute of the program is also a multilayer structure.
Cardano is a technology aimed at creating a decentralised network. It must guarantee energy savings and a sufficiently high level of security. These are the main and most important objectives of the project.
A Proof-of-Stake algorithm has been implemented to achieve the intended objectives and has been supplemented with additional elements.
This algorithm is based on several assumptions. First of all, it lists the so-called epochs and cracks, or slots. They are time units for its operation (an epoch lasts 21 6000 words and a slot 20 seconds). Secondly, withdrawals are made every epoch or directly proportional to the amount of coins accumulated at the beginning of the epoch. Another way is to make payments according to the number of slots in which the leader of the network of nodes is chosen.
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