The key to lasting value creation: the blockchain Digital Passport
Digital assets are everywhere in the news these days: cryptocurrencies, stablecoins, or non-fungible tokens (NFTs), just to name a few. Their applications are even more varied, from representing financial instruments to safeguarding the authenticity and ownership of digital IP or physical assets.
An important development is to be able to digitize information and data regarding assets and processes that need to be certified.
Blockchain in this perspective represents a real innovation since it allows the creation of a digital passport in which these data or processes are recorded and are easily usable.
Both from an internal perspective within the company, in the form of supply chain and production efficiency, and externally, as proof of authenticity and preservation of value over time of the asset.
The implementations of blockchain technology are truly endless, and this article will explain those, which from a business perspective create a real advantage.
Supply Chain Management
Despite the strong trend toward digitization, many work and data flows are still based on paper documents. It leads to a dependency on proofs and paper registrations, resulting in inefficiency and increased costs.
In every industry, digitalization is transforming business operations and processes. However, when it comes to data distribution processes that pass through organizational boundaries, data distribution becomes a challenge that relies heavily on documentation and manual checks.
How can the blockchain solve this problem?
All parties participating in supply chains, which connect various suppliers, manufacturers, retailers, customers, and distributors, can observe what’s happening.
It simplifies the workflow by using a shared public ledger to track everything from raw materials to final products, letting everyone view all of the activities along the chain. Furthermore, it eliminates the need for paper documentation because each step is notarized.
The goal is to create a streamlined, standardized, paperless, and error-free equipment procurement process that can be used throughout the supply chain and is accelerated by collaborative industry governance.
In addition to reducing equipment audit trails, the digital passport system has a wide range of applications. It could be used to track the environmental impact of an item or to provide one-click procurement with a ready-to-use digital passport and automated payments using smart contracts. Quality control is only possible if the digital passport is used to reduce the environmental impact of an item or to provide one-click procurement with a ready-to-use passport and automated milestone payments using smart contracts.
The digital passport of steps would thus create fast, secure, and more cost-effective supply network management.
Authentication of Luxury Goods
Companies are turning to blockchain technology to tokenize their assets with a unique digital passport that confirms the authenticity of luxury goods such as art, design items, fashion, or wine, as the trade-in of counterfeit goods continues to expand.
Customers want to know that what they are buying is the real deal. They also want to ensure that their purchases meet the highest ethical standards.
On the other hand, brands don’t want to lose their market share while ensuring that their customers can have complete confidence in the brand.
How can the digital passport solve this problem?
Let’s imagine we are buying a very high-end watch, since this represents an investment of a certain level, we want to know every characteristic of the asset, and we also want its value to remain unchanged, if not to grow over time.
The digital passport creates an identity for the physical asset.
As customers:
- we will be sure about the asset’s authenticity,
- we will know what materials it is composed of,
- we will know its entire production history,
all of this is thanks to the information that will be managed by the manufacturer itself.
In addition, we will have the ability to notarize the maintenance on the asset so that each one gives value to it.
The digital passport, being also uniquely correlated with the physical asset, will give it a notarized uniqueness, which will make its history (production, ownership transitions, and maintenance) and its distinctive characteristics transparent to all.
This will increase the likelihood that it can become an iconic piece of a given period without possible forgery to posthumous.
Digital passport for Automotive
A Blockchain digital car passport acts as a digitally secure, tamper-proof maintenance booklet in which all relevant car operations are recorded and time-stamped:
- Who is the current/past owner?
- What is the condition of the car?
- Has the car been repaired? By whom? Where, how?
All this information cannot be tampered with because blockchain is used, which is not retroactively changeable.
The digital passport provides a unique vehicle identification number, usually a cryptographic hash that can be used in various ways.
This ensures transparency in the world of car maintenance, as the location and any form of maintenance would, because of the strong incentives in terms of the vehicle’s residual value, be notarized in the blockchain.
It also creates quite a few problems for crime as fencing and reselling a car tracked in blockchain becomes difficult.
As explained above for luxury goods, the digital passport, moreover, if uniquely related to the physical good will give it a certified uniqueness, which will make its history (production, ownership transitions, and maintenance) and characteristics transparent and certain to all, increasing the likelihood that it can become an iconic piece.
The digital passport becomes an essential tool for classic vehicles, which, with the possibility of certifying that all maintenance has been carried out professionally, can only create value for the owners of unique pieces in the history of the automotive sector.
A value that becomes even greater if these are editions produced in limited editions.
The digital passport from MyLime perspective
MyLime digital passport solution focuses on creating value over time for assets.
By registering an asset’s digital identity on the blockchain, as explained above, problems such as authenticity, traceability, and loss of residual value are overcome.
MyLime introduces an additional and unprecedented layer to the ownership of luxury goods that can make these unique characteristics permanently visible.
Its setup is tailored to the particular needs of the luxury and lifestyle context and informed by the overarching trends that shape that context.
While the nature of lifestyle will continue to evolve as it always has, this programmable platform allows its clients to safely master those changes. The union between physical activities and information turns trust into substantial vehicle value.
This, in addition to creating value for the present owner of the asset, also confers various advantages to future ones, who will be able to have full confidence that the information that appears in the asset’s digital passport they are buying is authentic.
