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Integrating Blockchain Technology into
Amazon's Future: A Recommendation
Report
John Doe
Anonymous College
ENL1813
Mona Lisa
February 1, 2023
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TABLE OF CONTENTS
LIST OF FIGURES AND TABLES ........................................................................................................................... 2
INTRODUCTION AND PURPOSE. ........................................................................................................................ 3
FINDINGS ......................................................................................................................................................... 3
ANALYSIS ......................................................................................................................................................... 4
RECOMMENDATIONS. ...................................................................................................................................... 5
REFERENCES .................................................................................................................................................... 6
APPENDIX : ...................................................................................................................................................... 7
LIST OF FIGURES AND TABLES
Table 1. Active Blockchain implementations and Use cases identified in a Survey …………………………………7
Figure 1. Main domains in blockchain adoption …………………………………………………………………………………..4
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Introduction and purpose.
This study evaluates the benefits and drawbacks of integrating blockchain technology into Amazon's
corporate strategy. Blockchain technology can completely change businesses' operations by providing a
secure, decentralized ledger for transactions. By embracing this innovation, Amazon's top e-commerce
platform can stay on top of trends. This report covers an overview of blockchain technology as it stands
right now, potential applications for Amazon, and finally, a recommendation based on research findings
and a discussion of the benefits and drawbacks of adoption.
Findings.
The integration of Blockchain technology within the retail space has already proven its worth for its use
and application in supply chain management. It has the potential to substantially advance the
effectiveness, efficiency, security, and transparency of these operations and processes. (Welfare, 2019);
This capability could be incredibly beneficial for Amazon, whose extensive and complex supply chain
spans numerous countries and continents. By utilizing blockchain technology, one can ensure that all
parties in the supply chain can track the movement of goods in real-time and have a shared, current
understanding of their status. This functionality can decrease the risk of fraud and counterfeiting,
improving supply chain transparency and streamlining the dispute resolution procedure.
Amazon may also use blockchain technology for transactions and payment processing. Blockchain
technology enables Amazon to rely less on intermediaries, like banks and credit card companies, which
lowers transaction costs and streamlines customer payment processes (Nakamoto, 2008). By providing
users with a secure and decentralized platform for online payments using blockchain technology, the
risk of fraud and identity theft can also be reduced (Crosby, Pattanayak, Verma, and Kalyanaraman,
2016).
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Figure 1. Main Domains in Blockchain adoption (AlShamsi, Al-Emran, & Shaalan, 2022).
Analysis.
Although incorporating blockchain technology into Amazon's business model has many game-changing
benefits, some significant risks and challenges must be considered. One of the most significant risks is
the cost of implementation. Building and maintaining a blockchain network requires a significant
investment in time and resources up front (Mougayar, 2016) and significant resources and expertise.
Another potential issue in the blockchain industry is the need for more standards. Choosing between
the various blockchain platforms and protocols can take time for companies like Amazon. The
blockchain platform Amazon chooses might not be widely adopted by other companies, making it
difficult for Amazon to collaborate and do business with other supply chain organizations.
The final one is regulatory compliance. In some countries, blockchain technology use is still largely
unregulated, and it is unclear how regulators will respond to businesses using blockchain for various
purposes. Considerable obstacles regarding regulatory uncertainty have resulted in the throttling of
widespread adoption. (Seretakis, 2019) Amazon might feel uneasy as a result, and the business might
face fines or other penalties if it turns out that it broke the law.
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Recommendations.
It is advised that Amazon use caution when considering integrating blockchain technology into its
business model, given the findings and analysis of this study. Even though there are significant potential
benefits, the risks and implementation challenges must be carefully weighed against them.
To lessen the risks associated with implementing blockchain technology, Amazon should consider
collaborating with other supply chain businesses to develop and adopt a shared blockchain platform. As
a result, there will be less risk of platform obsolescence and more likelihood that other supply chain
businesses will support Amazon.
Furthermore, although blockchain technology is still in its infancy and faces several challenges, such as
problems with scalability, privacy, and regulatory compliance, there are still a lot of potential benefits to
consider. The technology has already begun impacting several industries, with multiple use cases
demonstrating its potential for achieving operations and supply chain management goals (Agi & Jha,
2022; (Gonczol, Katsikouli, Herskind, & Dragoni, 2020)). For instance, real-time tracking and product
authentication, reduced fraud and counterfeiting, and increased accountability and transparency could
all lead to better supply chain management (Böhme et al., 2015). In addition, it can be used to develop
decentralized applications like peer-to-peer marketplaces, identity management systems, and digital
wallets that have the potential to fundamentally alter how companies operate and carry out online
transactions (Nakamoto, 2008).
In summary, incorporating blockchain technology into Amazon's operations and services could have
several benefits, give the business a competitive edge, and open new revenue channels. The risks and
difficulties associated with this innovation must be considered, and a comprehensive response must be
planned. Given the research and analysis that has been done, it is advised that Amazon invest in
blockchain technology and start investigating its potential applications and benefits. The company needs
to work with other companies to create partnerships, assemble a team to manage the implementation
and integration process, and set aside funds for R&D if it wants to stay ahead of the competition.
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References:
Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, Technology, and
Governance. Journal of Economic Perspectives, 29(2), 213-238. https://doi.org/10.1257/jep.29.2.213
Seretakis, A. L. (2019). Blockchain, Securities Markets, and Central Banking', in Philipp Hacker and others
(eds), Regulating Blockchain: Techno-Social and Legal Challenges (Oxford, 2019; online edn, Oxford
Academic, 22 Aug. 2019), https://doi.org/10.1093/oso/9780198842187.003.0012
Agi, M. A. N., & Jha, A. K. (2022). Blockchain technology in the supply chain: An integrated theoretical
perspective of organizational adoption. International Journal of Production Economics, 247.
https://doi.org/10.1016/j.ijpe.2022.108458
Nakamoto, S. (2008). Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin.org.
https://bitcoin.org/bitcoin.pdf
Crosby, M., Pattanayak, P., Verma, S., and Kalyanaraman, V. (2016). Blockchain technology: Beyond
bitcoin, Applied Innovation, Vol. 2, pp. 6-10.
Welfare,A.(2019). Commercializing Blockchain: Strategic Applications in the Real World. John Wiley &
Sons.
Mougayar, W. (2016). The business blockchain: Promise, practice, and application of the next internet
technology. John Wiley & Sons.
Gonczol, P., Katsikouli, P., Herskind, L., & Dragoni, N. (2020). Blockchain Implementations and Use Cases
for Supply Chains-A Survey. IEEE Access, 8, 11856-11871.
https://doi.org/10.1109/ACCESS.2020.2964880
AlShamsi, M., Al-Emran, M., & Shaalan, K. (2022). A Systematic Review on Blockchain Adoption. Applied
Sciences, 12(9), 4245. MDPI AG. http://dx.doi.org/10.3390/app12094245
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Appendix :
A. Table 1. Survey results on the potential benefits and challenges of blockchain technology for
supply chain management in various industries (Gonczol, Katsikouli, Herskind, & Dragoni, 2020).
B. Case studies of successful blockchain implementation in the e-commerce and supply chain
management sectors:
1. https://consensys.net/blockchain-use-cases/global-trade-and-commerce/covantis/
2. https://cdn.consensys.net/uploads/AURA_ConsenSys_Press-Release_May-16-2019-1.pdf
3. https://consensys.net/blockchain-use-cases/finance/komgo/