How does blockchain-based remittance fit into Alibaba’s cloud offerings?

How does blockchain-based remittance fit into Alibaba’s cloud offerings?

            Blockchain technology involves the storage of transactions in blocks, and it allows the digital information to be distributed (Cocco, Pinna & Marchesi, 2017). Blockchain-based remittance involves sending money in payment without including any intermediaries. Alibaba’s cloud offers a lot of services which are useful to the organization and its customers. One of the significant services provided is data storage. Blockchain-based remittance will fit into Alibaba’s cloud, offering dues to some reason. The main one is the fact that the blockchain and cloud technology share some characteristics.

Blockchain technology allows the storage of data in blocks which are linked together (Rejeb, Keogh & Treiblmaier, 2020). On the other hand, cloud technology allows the storage and management of data. Alibaba’s cloud will have to use blockchain technology to store any data they need to save. Alibaba has specialized with e-commerce, retail and technology. In e-commerce, the sellers and the buyers should be able to transact without meeting each other. So, this means that the blockchain technology will be of great use. After the customers have transacted there is need to store the data in the cloud. Alibaba should access the data in the cloud.

The transactions should be recorded in the blocks using the blockchain technology. The parties transacting should be in a position to access the data for confirmation matters. There should be security in using both the cloud and blockchain technology. The data should be encrypted to ensure that unauthorized people do not get the chance of accessing it. It is worth noting that the blockchain technology will be an added advantage to Alibaba. The customers will be able to transact without involving the intermediaries, and this will save time as well as a transaction cost. From the above relationship, blockchain-based remittance certainly fits into Alibaba’s cloud offerings.

Question 2: What unique value does blockchain technology provide in Alibaba’s remittance offering?

Alibaba allows customers to send money in the form of payments without any significant challenges (Davis, 2018). Blockchain technology has a higher value when it comes to Alibaba’s remittance offering. Blockchain technology makes use of the distributed ledger. The distributed ledger contains a copy of the transactions which are copied across a network of computers. The entries are automatically updated meaning that there will be no errors in the data. After a transaction has occurred in its network, it is publicly recorded in the blocks.

Blockchain will enable Alibaba to attract more customers. Blockchain is becoming popular because it allows transaction without involving intermediaries. By eliminating the intermediaries, it means that the transaction time will be reduced. The transaction cost will also be minimized. Blockchain will enable Alibaba to reduce the transaction cost during remittance offering. By so doing, Alibaba will compete fairly with other technology companies in the market.

Question 3: What are other areas of application for blockchain in Alibaba’s cloud business?

Blockchain can be applied in many areas when it comes to Alibaba’s cloud business (Kawaguchi, 2019). From the case study, it is clear that blockchain has been applied in Alibaba’s remittance offerings. Blockchain has been applied when it comes to the storage of transactions between different parties. Apart from being implemented in the storage of transactions, blockchain can be applied in other areas concerning Alibaba’s cloud business. Alibaba offers several services which would be improved by making use of blockchain technology. One of these services is big data processing.

Customers can send their data to the cloud from where it will be processed. The processing process helps in extracting meaningful information which can be used in different activities concerning an organization. Blockchain will be useful when it comes to the processing of this data. First of all, the data will be saved in blocks. So, this means that the systems in charge of data processing will be able to access the data easily. When it comes to the processing of the transactions, there will be transparency. The parties on both sides will be able to track down the transactions stored in the blockchain.

Question 4: What is Alibaba’s strategy to overcome the “chicken and egg” problem of insufficient transaction liquidity?

Insufficient transaction liquidity is one of the challenges that Alibaba is facing. Alibaba’s has come up with a strategy that will enable it to deal with this challenge. The strategy concerns the blockchain application. Blockchain application will allow the company to enjoy several benefits. One of these benefits involves the reduction in transaction cost. By reducing the transaction cost, the organization will be able to attract more customers. By attracting more customers, it means that Alibaba will be able to save some money by making more profits. The profits made will be able to cater to its activities hence avoiding liquidity risks.

The other strategy that will help in dealing with insufficient transaction liquidity is the strengthening of the “Iron Triangle”. Alibaba should be ready to conquer new markets to be ready to achieve network effects with its blockchain remittance service. The blockchain remittance services are good to the customers, but Alibaba should make sure that they advertise their services. It should try exploiting new markets and compete fairly with the other technology companies in those regions.