Science Applications International Corp. (SAIC - Free Report) is partnering with The Goodyear Tire & Rubber Company on a pilot project to secure customer data across the supply chain with the help of blockchain technology.
Science Applications has been the prime contractor in the Tire Successor Initiative and Global Tires Program, valued at more than $900 million each, for nearly 10 years, delivering more than 1.5 million tires with a 97% fill rate.
This announcement comes right after Customs and Border Protection (CBP) announced that it has tested the feasibility of using blockchain to protect intellectual property rights (IPR) information transmitted between multiple commercial companies.
CBP’s efforts to fight imported counterfeit goods, including toys and prescription drugs, are long documented. Due to these illegal duplicates, U.S. companies lose hundreds of millions of dollars every year.
Advancements in Blockchain Bode Well for SAIC
Blockchain technology was originally introduced in 2008 to run the popular Bitcoin cryptocurrency service by digitally encrypting ledgers and transactions. However, with time, blockchain technology’s uses beyond cryptocurrencies were realized.
Science Applications began testing the technology in various areas, particularly supply-chain security and integrity enhancement, in 2016. In its efforts, the company has also developed a proof-of-concept blockchain solution for research data ownership for a customer. Moreover, it also worked on securing voting systems with blockchain technology. Besides, the company has worked with Microsoft (MSFT - Free Report) to evaluate the strength of Microsoft Azure Blockchain services.
Per Gartner, by 2030, blockchain is estimated to generate $3.1 trillion in new business value, with more mainstream adoption through 2023, as companies explore more realistic means of utilizing the technology.
According to IDC, spending on blockchain solutions is expected to reach $15.9 billion in 2023, at a CAGR of 60.2% from 2018. It is estimated to be $2.7 billion in 2019, up 80% from 2018.
In this backdrop, technology companies like IBM (IBM - Free Report) , Facebook (FB - Free Report) and Amazon, to mention a few, are exploring various usages of blockchain to revolutionize the functioning of several industries.
Currently, Science Applications is trying to bring a permissioned blockchain technology into its integrated logistics toolkit, which is a portfolio of open-source logistics and supply-chain management applications that support uninterrupted supply deliveries. The partnership with Goodyear is part of this effort.
With the partnership, Science Applications intends to leverage an “industry-standard format to process digital transactions or a ‘smart contract’ protocol into the cybersecurity program as well as help participants monitor and analyze supply chain activity”.
Science Applications currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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