Accenture, the global management consultancy firm, has revealed that they have created a prototype blockchain app that will incentivize businesses to conserve resources. The firm will work with Mastercard, Everledger, and humanitarian aid organization Mercy Corps to facilitate a “circular supply chain.”
Supply chains are widely considered to be one of the most suitable areas for the application of blockchain, and the blockchain has indeed been noted for its ability to reduce wastage and improve sustainability. The circular supply chain is built on the Hyperledger blockchain.
Consumers will be able to tip producers as and when they engage in sustainable practices. The former will be able to scan a digital code that will offer information on the supply chain trail of the product. Consumers will be able to give farmers and producers a tip for their services, as well encourage positive environmental behavior.
David Treat, Managing Director of Accenture, described how blockchain systems could connect all stakeholders in the system and bring about positive social change,
Over the past several years, we have built upon our longstanding identity work with a focus on the more than 1 billion people in this world who lack any form of recognized identity. We saw directly linking consumers and the value created at the end of a supply chain directly back to help small producers at the beginning as critical to actually driving real social and environmental change.
While Mastercard will obviously bring its understanding of payments, no information on how exactly the payments processor will bring its expertise to the collaboration has yet been announced.
Accenture’s circular supply chain combines digital identity and payments systems to reward network participants to reduce wastage. The targeted industries are consumer goods and services, banking and retail.
Ric Shreves, a senior adviser to the tech team at Mercy Corps, spoke of the ideas that are being floated for the circular supply chain,
In this stage of the project, we are exploring possible agricultural programs in our current program portfolio to pilot Circular Supply Chain. We think it will be best suited for boutique consumer goods, for example single origin coffee, as opposed to bulk goods.
Accenture Keen on Blockchain
This is not Accenture’s first foray into blockchain, having previously started several initiatives to introduce blockchain to businesses and nonprofits across the world. The firm’s own description of blockchain potential is as follows,
Blockchain technology provides new infrastructure to build the next innovative applications beyond cryptocurrencies, driving profound, positive changes across business, communities and society… Blockchain will supercharge artificial intelligence and IoT to make everything from supply chains to digital identity management smarter and more secure.
Accenture expects blockchain to radically transform several industries, including banking, healthcare, supply chains and tech ecosystems.