Various technology companies around the world have begun experimenting with blockchain technology. LG is the latest big name to join this list, although it will not be the last by any means. Its new blockchain service, known as Monachain, is well worth paying attention to. Whether or not it will be successful in the long run is a different matter altogether.
The Idea Behind Monachain
One has to commend LG for venturing into the blockchain industry. The technology giant is looking to enter this completely new market by providing blockchain services to people and companies all over the world. It is mainly designed to enable blockchain-based logistics within the areas of finance, communication, and manufacturing. It is not the only project trying to make inroads in this regard, but the fact that LG is behind it might give it a competitive advantage.
To make its new blockchain venture stand out, LG had to offer some unique functionality. First of all, there is a digital certification feature, which will undoubtedly get a lot of attention. There is a growing demand for recording data on distributed ledgers, and certification efforts will play an important role in this regard. This aspect relies on biometric information to verify users’ identities.
Additionally, LG’s Monachain will focus on digital supply chain management. There have been numerous DLT-based ventures to track logistics in real time and in a transparent manner. All of those operations have been rather small-scale, but it seems LG thinks there is a large market waiting to be tapped. This function will communicate a variety of information, from production to delivery, to each stakeholder. It can also be used to track inventories along the way.
Last but not least, Monachain offers a digital community currency service. As such, users can issue local currencies, complete welfare benefit payments, and so forth. This latter aspect will be of particular interest to banks and governments simply because of the opportunities it provides. LG is also working on a community banking business with commercial banks to take this feature to the next level.
Can Monachain make an Impact?
While all of this sounds rather appealing, it remains to be seen if anyone will actually use Monachain. A lot of the potential use cases have yet to be developed at this stage, after all. LG CNS CTO Hyun Shin-kyun acknowledges the team will concentrate on creating new use cases across various industries, including telecommunications, manufacturing, and finance.