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Walmart Tests Blockchain For Use In Food Recalls (bloomberg.com)

An anonymous reader quotes a Bloomberg article about Walmart: Like most merchants, the world's largest retailer struggles to identify and remove food that's been recalled. When a customer becomes ill, it can take days to identify the product, shipment and vendor. With the blockchain, Wal-Mart will be able to obtain crucial data from a single receipt, including suppliers, details on how and where food was grown and who inspected it... "If there's an issue with an outbreak of E. coli, this gives them an ability to immediately find where it came from. That's the difference between days and minutes," says Marshal Cohen, an analyst at researcher NPD Group Inc...."

In October, Wal-Mart started tracking two products using blockchain: a packaged produce item in the U.S., and pork in China. While only two items were included, the test involved thousands of packages shipped to multiple stores... If Wal-Mart adopts the blockchain to track food worldwide, it could become of the largest deployments of the technology to date.

America's Centers for Disease Control and Prevention estimates roughly their recalls affect roughly 48 million people annually, according to the article, "with 128,000 hospitalized and 3,000 dying."

109 comments

  1. how about barcodes? by Anonymous Coward · · Score: 2, Insightful

    UPS, FexEx, etc. track packages with barcodes, no need for blockchain.

    1. Re:how about barcodes? by fph+il+quozientatore · · Score: 5, Funny

      Yes, but you need a blockchain to make your cloud-based internet of things 2.0 social mining semantic smart-city experiment.

      --
      My first program:

      Hell Segmentation fault

    2. Re:how about barcodes? by Anonymous Coward · · Score: 1, Informative

      Barcodes are ideal to identify classes of products but not individual products. For example 'One gallon of whole milk' only needs one barcode for all individual entities, but when you sell millions of bottles of milk every day you need a larger identity key, like a blockchain if you want to track individual bottles.

    3. Re:how about barcodes? by Anonymous Coward · · Score: 1, Interesting

      This.

      Blockchain is just a buzzword and adds nothing whatsoever to the process.

      Somebody at Wal-Mart obviously doesn't understand what they are being sold.

    4. Re:how about barcodes? by DNS-and-BIND · · Score: 3, Insightful

      A barcode is not a Fedex tracking number. A barcode is just a way to encode numbers in a machine-readable way. A tracking number uniquely identifies a single package. Blame the person who modded the information-free anonymous comment +1.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
    5. Re:how about barcodes? by Anonymous Coward · · Score: 1

      Dude, "blockchain" isn't some word that you can use to describe a random thing. Use "thing", "widget", "thingamabob" or "doohickey" for that. "A blockchain" is not a key and does not identify anything. A blockchain is used to make information tamper-resistant (and it doesn't even do that on its own.)

    6. Re: how about barcodes? by Anonymous Coward · · Score: 0

      You have no idea how a Barcode works. Example. They have the same upc/Barcode for broccoli and bananas in ALL grocery stores. Not just Walmart. There are multiple suppliers for both products as well as multiple fields from each supplier that each product could be harvested from.

      A Barcode is great to scan a product at purchase and count inventory but beyond that it is 100% useless. Why do you think you've seen QR codes on some of your food to track where it came from? Because a Barcode can't do that. The same Barcode for bananas have also been in use for decades. So how do you track where that banana that made you sick came from?

      I think the news here is that Walmart kills 3000 people a year.

    7. Re:how about barcodes? by rednip · · Score: 0

      A blockchain is nothing more than a log of all transactions, including splits which would need to be 'attached' to a physical unit for the use described in this story. It's very much like a bar code, but individualized for each package and inclusive of the blockchains of ingredients rather than a pre-registered number dependent on individual company database for context. If properly done there are clear advantages in tracking ingredients from farm to table especially when it comes to recalled food, but it will take a tremendous effort throughout the supplier chain. However, Walmart has used its position for such leverage before.

      --
      The force that blew the Big Bang continues to accelerate.
    8. Re:how about barcodes? by Anonymous Coward · · Score: 3, Insightful

      if you want to track individual items, then slap a QR code onto each product with its serial number. Problem solved.

      there's absolutely nothing that a write-only ledger (block chains) solves that a regular ledger (in a database, or just an append only file, etc.) cannot solve...

    9. Re:how about barcodes? by Anonymous Coward · · Score: 0

      Blockchain is used to make information temper-resistant. Last time I checked, identifying items and transactions counted as information too.

    10. Re:how about barcodes? by Anonymous Coward · · Score: 1

      The concept of storing all of the supply chain process from field to consumer is surely noteworthy at Walmart's scale, but it doesn't require a blockchain. Block chains are important for things like distributed transactions where there isn't one central trustworthy party with a vested interest in making sure the right transactions are properly entered and kept. This is just a complete logistics inventory database that contains all these records - presumably against a GUID per package that allows the machines to track them. NOTHING ABOUT THIS REQUIRES A BLOCK CHAIN!!!
       
      I feel there's certainly a Dilbert cartoon on point here. Nueralnet quantum computing analytics blockchains making your business 5.0 faster for the future. Only costs 400% more than it should and won't deliver any of the promises - at least promises that are inherent in the technology chosen to deliver. I would have to think Oracle or SAP would be a much better choice to do this. Watch the bitcoin zellots downvoting in 3... 2...

    11. Re:how about barcodes? by Anonymous Coward · · Score: 0

      a larger identity key, like a blockchain

      That's not what it is. Like, not at all.

    12. Re:how about barcodes? by Anonymous Coward · · Score: 1

      THIS.
      There is absolutely no reason for this silly use.

      It isn't hard to make a serial number where the left-most bits are significant, then any digits after X are the unique identifies for a certain region, identified by one of the left-most bits.
      This sort of serial number can expand to infinity on the right side without breaking any algorithms.

    13. Re:how about barcodes? by Anonymous Coward · · Score: 0

      That is an amazingly simplistic solution to a complex logistical problem. Congratulations, you've earned your Nobel in economics.

    14. Re:how about barcodes? by Anonymous Coward · · Score: 1

      WTF? How did this get modded to +5? There are plenty of products that already use barcodes to identify serial and revision number, particularly for electronics, which sell millions of items. Millions of packages, drivers licenses, VIN, MAC address, etc. Even with a block chain, you need some way to put a number on an product or receipt to identify it, and barcodes are capable of working with large enough numbers to do so, especially more modern versions.

      That is completely orthogonal to blockchains, as a blockchain doesn't change how you put a number on a product. You can use both barcodes and blockchains. Or you could just use the key on the item to look up things in a plain old database. They already have a plain database of all purchases, and it would be just a matter of adding an extra serial number column, something some other businesses already do for more expensive purchases.

    15. Re: how about barcodes? by Anonymous Coward · · Score: 0

      There *are* issues and problems that using a blockchain solves that using a database doesn't. This probably isn't one of them.

    16. Re: how about barcodes? by Anonymous Coward · · Score: 0

      Such as......

    17. Re:how about barcodes? by Hognoxious · · Score: 1

      Blockchains are webscale because they don't use joins.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    18. Re:how about barcodes? by Hognoxious · · Score: 1

      when you sell millions of bottles of milk every day you need a larger identity key, like a blockchain

      What you need is called a batch number, and they've been in use for decades.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  2. Word by Cyphase · · Score: 5, Funny

    Blockchains in the big box chains gon' rock change. Strange.

    --
    by Cyphase ( 907627 )
  3. Saving money by jbmartin6 · · Score: 3, Informative

    Not that there is anything wrong with it, but we see the crux of the matter with this quote: "It’s also the difference between pulling a few tainted packages and yanking all the spinach from hundreds of stores"

    --
    This posting is provided 'AS IS' without warranty of any kind, implied or otherwise.
    1. Re:Saving money by rmdingler · · Score: 1
      Sure, and if the pesky individual privacy rights can be eroded some more,

      a national DNA database could narrow it down to one field hand skipping a bathroom trip to the field potty to up his pick count.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    2. Re:Saving money by Anonymous Coward · · Score: 0

      Of course they're trying to save money. Production with minimal waste is one of the points of capitalism.

    3. Re:Saving money by Anonymous Coward · · Score: 1

      Yes, the well known "right to defecate on the production floor into the products being shipped to customers" right that so many fought to defend...

    4. Re:Saving money by bluefoxlucid · · Score: 1

      There are no new privacy issues in this strategy.

      Currently, food-borne illness is identified when a consumer volunteers information about becoming ill from consuming a food. That illness is then cross-referenced with the matching food product the consumer purchased, based on consumer testimony or receipts. Enough of such information identifies a product, which we can then remove.

      The proposed method attaches the entire handling chain to the consumer's purchase. Once we identify the receipt and the food, we don't simply recall a product; we look at the specific instance of the food the consumer purchased. That instance's handling chain shows us how it shipped, who packaged it, and where it was produced. We can then narrow down the specific set of affected foods and possibly identify a specific cause of contamination, recalling less product and avoiding similar issues in the future.

      In both instances, customers volunteer information about foods they purchased. The receipt relevant to the sale is already in the system; and, if that receipt is attached to a loyalty program or credit card, it has enough information in the database already to identify the individual customer. If the receipt is anonymous (non-loyalty, cash payment), the customer can provide an identifier from his receipt, and the store can look up the receipt, and nobody can identify the individual customer; the block chain still identifies the food's handling chain. If the receipt is identifiable (by loyalty account or last 4 digits of credit card), the store can look up a matching purchase in the given time frame, and obtain the same data.

      No new ability to identify the customer is added.

    5. Re:Saving money by rmdingler · · Score: 3, Informative

      The 2006 E Coli spinach outbreak was directly a result of defecating on the production field.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    6. Re:Saving money by bluefoxlucid · · Score: 1

      That's sort of the point, isn't it?

      Back in 1790, 90% of American laborers worked in agriculture--farm work. Women made clothing at home to produce additional income, using skills necessary for economic survival due to the feasibility (or lack thereof) of the average household to afford clothing in the way we generally view as normal. People grew substantial gardens and livestock, hunted, and otherwise supplemented their nutritional needs, due to a lack of affordability of food.

      In 1900, 28% of American laborers were agricultural workers. New farming techniques over the prior century increased yield per land area and, consequentially, yield per laborer. With fertilizer, farm tools, and irrigation, a great deal of labor actually supported food production; and food cost a full 40% of the average household's income.

      By 1950, the use of the farm tractor, better fertilizers, and other innovations pushed us forward to even lower-labor agriculture. The wide-spread use of the wooden shipping pallet after 1915 greatly reduced shipping costs at all levels of distribution as well. Even so, 1950s agriculture was beastly; one of the great innovations involved an irrigation system by which a farmer connected a pump to a long arm and walked slowly in an enormous circle around a section of crops to lead the irrigating arm. All in all, 12.2% of American laborers worked on the farm, and the average American household still expended 33% of its income on food.

      From 90% to 28% to 12% labor on the farm. From supplemental income to 40% to 33% income spent on food.

      After the 1980s, chemical fertilizers, pesticides, and GMOs had brought advanced farming techniques to current standards. By 2000, only 2% of America's laborers worked in agriculture, and 13% of the average household's income went to food; in 2015, it's below 2%, and food expenditure is as low as 12%. The total work involved between chemical and genetic engineering, irrigation, machinery, fueling, and actual farm labor has fallen greatly since 1950, and continues to fall slowly today; and Americans now eat out of the home much more frequently, essentially directing their savings toward the commission of servants to prepare and serve their food.

      Cost of risk is part of cost. When a food recall occurs, that food must be destroyed; labor which went into making that food is lost, with no product to come out of it. Those workers must get paid--the minimum viable price is essentially the cost of labor, with the eventuality that profits pay for expansion or risks, and that risks either involve labor which turns out wasted or involve new labor--and so prices must reflect the risk of food loss.

      The cost is of course small. If 1% of food is recalled and we eliminate 90% of that, then roughly 0.9% of the cost of food is eliminated: a $100 grocery shopping trip now costs $99.10. Food recall affects much less than all that, of course. The principle is still sound.

    7. Re:Saving money by Anonymous Coward · · Score: 1

      The 2006 E Coli spinach outbreak was directly a result of defecating on the production field.

      Introducing the Intel 3cxx, The first colon embedded chip with wireless communication. For blockchain managers who actually care about shit.

    8. Re:Saving money by Anonymous Coward · · Score: 0

      Yeah! It's also the difference between disrupting the lives of hundreds of people instead of millions. Walmart is teh evils!

  4. :-| Buzzword buzzword buzzword by Anonymous Coward · · Score: 4, Informative

    Okay, reading through that article it uses 'blockchain' repeatedly without introducing the concept or defining anything it does/offers.

    It can be summed up as 'Walmart testing thing IBM wants to sell to everyone' gg, we're done here. All aboard the hype train!

    But, Anonymous Coward, it's a decentralized private cloud immutable ledger system! It's the future. Right, right, I give you it's a novel use of the underlying mechanism of bitcoin... take an open source project, wrap your head around it and sell it as IBM. Neat. It's still a cringe amount of buzzword bingo. It's still not clear from all the hype why taking business analytics + buzzword > business analytics.

    1. Re::-| Buzzword buzzword buzzword by K.+S.+Kyosuke · · Score: 1

      take an open source project, wrap your head around it and sell it as IBM.

      I'm convinced! I'll have two IBMs, please.

      --
      Ezekiel 23:20
  5. This is a great opportunity by Anonymous Coward · · Score: 0, Insightful

    This is a great opportunity for some knowledgeable person to explain WTF "blockchain" is in words of one syllable, so those of us who don't want to wallow in cryptological minutia can have at least a casual grasp of WTH is going on here.

    Just saying. Damn jargon is hip-deep around here sometimes.

    1. Re:This is a great opportunity by TapeCutter · · Score: 4, Informative

      explain WTF "blockchain" is in words of one syllable

      An audit trail.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    2. Re:This is a great opportunity by RobotRunAmok · · Score: 1

      Jargon will always be thick in a tech site. What you are hip-deep- in here are lazy and/or poorly trained editors who do not properly frame the story.

    3. Re:This is a great opportunity by Anonymous Coward · · Score: 0

      This is a great opportunity for some knowledgeable person to explain WTF "blockchain" is in words of one syllable, so those of us who don't want to wallow in cryptological minutia can have at least a casual grasp of WTH is going on here.

      A thing that does stuff.

      And: Grow the heck up and learn to think.

    4. Re:This is a great opportunity by Anonymous Coward · · Score: 1

      'Audit' is 2 syllables. Thanks for playing.

    5. Re:This is a great opportunity by oobayly · · Score: 2

      Log of stuff sold and things done

    6. Re:This is a great opportunity by Anonymous Coward · · Score: 0

      A book that is hard to cook.

    7. Re:This is a great opportunity by Anonymous Coward · · Score: 0

      explain WTF "blockchain" is in words of one syllable

      An audit trail

      Is that the US pronunciation of audit? :)

    8. Re:This is a great opportunity by tehcyder · · Score: 1

      'Audit' is 2 syllables. Thanks for playing.

      The colloquial phrase "in words of one syllable" means "as simply as possible". It does not literally mean you can only use one syllable words.

      Thanks for playing.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  6. I have a hammer... by Anonymous Coward · · Score: 1

    Gotta find a nail, gotta find a nail.. damn, that screw could be a nail!,

  7. What? by Anonymous Coward · · Score: 1

    Is there a reason walmart cannot just run a central database with a bunch of submitted information? The only thing good about blockchain tech is that its decentralized.

    1. Re:What? by davide+marney · · Score: 2, Insightful

      "The only thing good about blockchain tech is that its decentralized." Which is exactly the situation with our food chain, which involves hundreds of decentralized participants. So, blockchain makes a ton of sense.

      --
      "We receive as friendly that which agrees with, we resist with dislike that which opposes us" - Faraday
    2. Re:What? by Anonymous Coward · · Score: 1

      Any one person with appropriate privileges (or someone who stole them) can change the entry for a barcode in a database. Or just delete it.

      It is harder to accomplish this using a blockchain.

    3. Re:What? by bluefoxlucid · · Score: 2

      So, instead of getting all this data together in a database with a FK SerialNumber, it stores all the information in something that changes each time it changes hands, thus allowing them to know all information up to when they obtained it, but not afterwards.

    4. Re:What? by F.Ultra · · Score: 2

      And in the real world every one in the supply chain have to report the logs to either Walmart or IBM, there will most certainly be no decentralized thing about it at all.

  8. Much more than barcodes by davide+marney · · Score: 4, Informative

    Sadly, the article is silent on some important details. If you dig into the IBM announcement, you find that they are putting the entire chain of custody records into a blockchain, from source to the consumer -- all the things that traditionally would have gone into production logs, shipping manifests, etc. right down to the final delivery to the home. So, much, much more than what can be contained in a tracking barcode.

    --
    "We receive as friendly that which agrees with, we resist with dislike that which opposes us" - Faraday
    1. Re:Much more than barcodes by beaker_72 · · Score: 5, Insightful

      OK so I've read the IBM announcement and you're right that is what they're using blockchain for. However I don't see how this adds any value over and above the use of a standard relational database. To track the source of an offending item of produce, that item is going to need some kind of unique identifier - regardless of where the chain of custody data is held. A unique identifier can be used to access the relevant information in a database. How does blockchain improve on that?

    2. Re:Much more than barcodes by Anonymous Coward · · Score: 0

      Do you eat paste, or just your own feces? Please, please explain how somehow fitting this much data into a blockchain magically allows you to encode it on a product somehow more efficiently than an arbitrary barcode, of which this is surely an implementation!?

    3. Re:Much more than barcodes by GrumpySteen · · Score: 2

      I don't see how this adds any value over and above the use of a standard relational database.

      Blockchain technology: 9 benefits & 7 challenges

    4. Re:Much more than barcodes by rmdingler · · Score: 1

      Sadly, the article is silent on some important details. If you dig into the IBM announcement, you find that they are putting the entire chain of custody records into a blockchain

      There's nothing wrong with using tech to track the source, but at the source, if you dig into field practices, perhaps the problem could be addressed earlier.

      --
      Happiness in intelligent people is the rarest thing I know.

      Ernest Hemingway

    5. Re:Much more than barcodes by GrumpySteen · · Score: 2

      Dammit... broke the link. *plays jeopardy theme song while waiting out the multiple post delay timer*

      https://www2.deloitte.com/nl/n...

    6. Re: Much more than barcodes by Anonymous Coward · · Score: 0

      if a refrigerator unit packed up mid route, tracking the source won't help but this might. Finding only 2 or 3 isolated cases would let them find the common location and allow all affected foodstuffs to be recalled.

    7. Re:Much more than barcodes by Yvan256 · · Score: 3, Informative

      When every step of the chain uses the blockchain, from manufacturing/production to the end-user, you know from where every single item originates, the date, where it traveled, where it ended up and how to contact everyone in that chain (buyer's email).

      So if manufacturer X says product Y made on date Y/m/d in factory Z is tainted, they have a way to email every store to tell them to dump the items and also a way to contact every affected customer to tell them to return the item to the store.

      You can't do that with a simple barcode.

    8. Re:Much more than barcodes by F.Ultra · · Score: 1

      Of course you can, you use the number from the bar code as the id for the database where all these logs are held. A blockchain will not change anything at all regarding this, the package still needs to have a barcode as the id for the blockchain so the barcode is still a must.

    9. Re:Much more than barcodes by ShanghaiBill · · Score: 2

      A unique identifier can be used to access the relevant information in a database. How does blockchain improve on that?

      A relational database can be deleted, corrupted, or falsified after the fact. You are assuming everyone in the supply chain is honest. Incidents such as the melamine-in-milk scandal show that is not always the case.

    10. Re:Much more than barcodes by bws111 · · Score: 1

      Who owns this database? Who can add to it? Who can modify it? Who can see the contents of it?

      The way it is done today is with standard relational databases. That method is not ideal, as even the summary mentions (it can take quite a while to backtrack through all the individual suppliers databases to find a common thread). With blockchain, the entire history is right there, in one place.

    11. Re:Much more than barcodes by Gorobei · · Score: 2

      And you don't need a blockchain to fix the relational db tampering issue. You just crypto-sign records and publish the (possibly encrypted) ledger. Sign-and-register is technology that works and has been around for long before computers even existed.

      The only thing blockchain solves is the double-spend problem. And that isn't an issue for WallMart's solution.

    12. Re:Much more than barcodes by bws111 · · Score: 1

      And just where does this magical database exist? Who owns it? Who can add to it? Who can modify it? Who can see it?

    13. Re:Much more than barcodes by Anonymous Coward · · Score: 0

      Walmart.

    14. Re:Much more than barcodes by Anonymous Coward · · Score: 0

      Barcodes are unique to a product, i.e. "Toothpaste brand X, 100ml". There's nothing that says when it was made, where it was made, which carrier transported it, which store sold it and which customer bought it.

    15. Re: Much more than barcodes by Anonymous Coward · · Score: 0

      But it can though. Nothing is stopping them from adding those fields to a database.

    16. Re:Much more than barcodes by ShanghaiBill · · Score: 1

      You just crypto-sign records and publish the (possibly encrypted) ledger.

      If the entire DB was encrypted and published every time it was modified (many times per second) how could that possibly be a better solution than a blockchain? If you only encrypted and published the diffs, then wouldn't the chain of diffs pertaining to a single item be functionally the same as a blockchain, other than being scattered and more difficult to verify?

    17. Re:Much more than barcodes by Anonymous Coward · · Score: 0

      No they aren't. You're assuming it's synonymous with EAN/UPC/SKU. It's not. A barcode can contain any set of digits, it's just a way to avoid keying them in. In fact, many scanners appear to the machine like a keyboard.

      Ever bought Pampers? For some reason they have about 97 of them. If you use the self-scan or choose the line with the trainee your kid can have grown out of them before you get the right one.

    18. Re:Much more than barcodes by Gorobei · · Score: 1

      You just crypto-sign records and publish the (possibly encrypted) ledger.

      If the entire DB was encrypted and published every time it was modified (many times per second) how could that possibly be a better solution than a blockchain? If you only encrypted and published the diffs, then wouldn't the chain of diffs pertaining to a single item be functionally the same as a blockchain, other than being scattered and more difficult to verify?

      You're totally correct. A classic DBMS is just an efficient way to map a series of immutable transactions into a current state that can be queried efficiently: in it's most pure form it's just a complete transaction log, an initial empty state, a mapping from state+transaction->state, and a bunch of caching to aid in querying. So the transaction log is exactly equal to your chain of diffs.

      Is the chain of signed diffs the same as a blockchain? Not quite. They are both chains, but transactions in the diff chain are not revokable (they are signed and can be upheld in court, etc,) whereas the blockchain transactions only become effectively non-revokable by consensus (requiring time and lots of compute power.) So, signing is much faster and cheaper than consensus. Scattered is second reason signed transactions are better: I only need to keep my copy of a transaction to prove it happened, blockchain requires I go out and find the consensus longest chain to prove the transaction is recorded. So, signed is safer and faster again as long as I can keep my own data.

    19. Re:Much more than barcodes by F.Ultra · · Score: 1

      Exactly the same place where the blockchain will be, hosted by IBM for Walmart. Or did you think that they would somehow make it public ala bitcoin?

    20. Re:Much more than barcodes by Lehk228 · · Score: 1

      right where? it still has to be stored somewhere. and blockchain is vulnerable to 51% tampering

      --
      Snowden and Manning are heroes.
    21. Re:Much more than barcodes by Lehk228 · · Score: 1

      or you can, you know, come up with a common schema and mandate that your suppliers update your database in real time. this will have all of the advantages, plus it will run faster, plus it will work with existing software systems.

      --
      Snowden and Manning are heroes.
  9. FTFY. by tlambert · · Score: 1

    America's Centers for Disease Control and Prevention estimates roughly their recalls affect roughly 48 million people annually, according to the article, "with 128,000 hospitalized and 3,000 dying."

    I think you meant to say:

    America's Centers for Disease Control and Prevention estimates roughly their recalls affect roughly 48 million people roughly annually, according to the article, "with roughly 128,000 hospitalized and roughly 3,000 dying."

  10. Barcodes are data - not a database by sjbe · · Score: 4, Informative

    UPS, FexEx, etc. track packages with barcodes, no need for blockchain.

    A barcode doesn't track anything nor can it realistically be updated once it has been created. They use a database to track packages. The barcodes are merely a means of quickly "typing" a bit of data at a physical location - the database is what actually keeps track of things. Barcodes become cumbersome as a means of identifying specific packages when you get to very large volumes. UPS deals with about 15 million packages per day. A big number but nothing like what would be necessary for real time tracking of what Walmart is looking at doing. Walmart deals with tens of billions of individual product transactions so the complexity is substantially higher. There is a big difference in data and complexity between shipping a single box of 100 widgets versus knowing the entire supply chain history for each and every one of those 100 widgets.

    1. Re:Barcodes are data - not a database by F.Ultra · · Score: 2

      Sounds like you think that they are going to print out the whole block chain on the actual package. Most likely they will use a *gasp* barcode on the package as the id to reference the package in the block chain.

    2. Re:Barcodes are data - not a database by bws111 · · Score: 1

      You are missing the entire point. The point of the blockchain (regardless of how it is identified) is that you have the ENTIRE HISTORY of that product in one place, and that history is cryptologically secure. Even if that one product had 5 steps in the supply chain, it is ALL there. Your magical UPS barcode tells you nothing except what UPS knows about the package. That is a HUGE difference.

    3. Re:Barcodes are data - not a database by Anonymous Coward · · Score: 1

      I think you missed the point.

      The barcode isn't going to tell YOU anything except that Wal-Mart uses barcodes and, if you have several of the same thing, that they use different ones for every single thing. This is the same thing with UPS, the bar codes don't tell you anything except that your package has a number.

      Wal-Mart is NOT going to be encoding something directly on each package that has its full history because that would mean altering this indicator every time the package was packed, shipped, unloaded, shelved, etc. Instead, the item will get a Globally Unique Identifier and that identifier will be use to track its movement, much the same way the UPS bar code is used to track a package's movement.

    4. Re:Barcodes are data - not a database by Bigjeff5 · · Score: 1

      You only need the latest block in the blockchain. From the latest block, you can find every previous block associated with that item. That's the point of blockchains.

      For example, a package of broccoli might get a barcode or QR code of a new block as it gets put on the shelf. This is the only block directly associated with this particular package of broccoli.

      However, the block on the package of broccoli references the block that was placed on the box that the package of broccoli came out of. That block references the crate that the box of broccoli came out of. That block references the shipment that the crate was sent to the store on. That block references the warehouse that the crate was stored at while it waited for shipment. That block references the packaging facility that the broccoli was packaged at. That block references the farm that the broccoli was picked and shipped from. Hell, depending on how anal the farmer was about tracking, they could probably tell you the row the broccoli was picked from.

      All of these blocks have timestamps, so when they scan the receipt from the customer who got sick, they have enough information in that one little barcode to see exactly where and when the broccoli was picked, and every stop it made on the way to the store. In mere moments they can freeze shipments from the farm/distributor/whatever and alert other stores to the potential for issues. They can immediately investigate exactly what happened to the shipment, and who might be affected, rather than having to do a bunch of data mining first.

      Right now, all the barcode tells you is "These are Green Giant broccoli florets", plus maybe the time they were put on the shelf. With blockchains, they could say the same thing, but they'd also say "see hash XYZ". Just that little change lets you store the entire history of that broccoli.

      This is all doable without blockchains, of course, but it would require a much more intricate system, with diligence in every step to prevent screw ups. With blockchains the process is simple, and requires no extra infrastructure: You just scan the latest block in the series, and generate a new block as the package moves to the next step. I imagine there are barcode printers that could do it just fine right now, just need to reference the old hash while generating a new hash, then upload the info to a database when done (I'm sure they can do that automatically, too).

      --
      Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
    5. Re:Barcodes are data - not a database by F.Ultra · · Score: 1

      That is assuming that IBM will build a distributed public blockchain for Walmart when the truth is probably that this will all be a hosted server by IBM for Walmart that no one else will get access to. So blockchain is just a magic word here, there is nothing that makes this easier to do with a blockchain than with a traditional database.

    6. Re:Barcodes are data - not a database by Lehk228 · · Score: 1

      this is different from a regular RDBMS how?

      --
      Snowden and Manning are heroes.
  11. Easier Solution by ickleberry · · Score: 1

    Stop importing pork from China. You wouldn't know what kind of filth would be in that.

  12. Transaction logging by sjbe · · Score: 2

    Is there a reason walmart cannot just run a central database with a bunch of submitted information?

    Yes. First off there are few/no standards in place to do it nor much infrastructure for real time tracking of this information currently. All this will have to be created from scratch and so they are experimenting with various technologies for doing just that. This is one of those experiments. Second, our food supply chain is hugely decentralized and tracking the transaction records is currently very cumbersome. Since we need to know the origin of products it makes sense to adapt a technology which is built specifically to accurately and transparently log the transaction history of a given item.

    The only thing good about blockchain tech is that its decentralized.

    No that isn't the only good thing about it. It's pretty useful for logging transaction histories which has nothing inherently to do with being centralized or decentralized. This feature of blockchains is probably FAR more useful to supply chains than it is for currencies. Bitcoin and the like are cute experiments that probably will never amount to much but blockchain tech has potential applications well beyond crypto-currencies which are probably far more economically valuable than bitcoin could ever hope to be.

  13. A UPC is only one type of bar code by raymorris · · Score: 2

    It seems you're thinking of Universal Product Codes (UPC), the bar code found on nearly every packaged product you buy. That's the most common use of bar codes.

    You may notice that some products
    have two or three different bar codes on them, the UPC code that's scanned when you check out, and also others. At the bottom of the windshield on your car, you'll see your VIN as both human-readable numbers and also as a bar code. If you have a supermarket loyalty card, it probably has a bar code on the back identifying your card vs someone else's.

    ONE thing that bar codes are used for is UPC, but they can be used for anything that's printable as text, and are used for many purposes, not just for UPC codes.

    Next time you get tickets to a show, take a look and you'll probably see a bar code on the ticket, which is your specific ticket number.

    1. Re: A UPC is only one type of bar code by Anonymous Coward · · Score: 0

      'UPC code' is superfluously redundant.

  14. Why not AS2 or AS4? by xxxJonBoyxxx · · Score: 1

    Walmart was a huge proponent of AS2 to talk to its suppliers back in the day. And I remember the pharmas here in the US were playing with AS2 to do "pedigrees" that tracked product from endpoint to endpoint. So...why isn't Walmart looking at AS2 (or AS4) to do the same here?

  15. I eat from farms by holophrastic · · Score: 1

    and this is exactly why I eat all of my food direct from farmers. blockchain shmockchain, walmart kills 50 times more people than sharks. so many that they need this much technology just to track it! none of this actually stops the food from being tainted.

    Like I've said before, I don't want walmart to take back the bad food. I want them to be horrified that their food was tainted. Alas, it is not their food, and hence they don't give a shit. They care only about their dollars.

    So, I buy directly from the farmers around me. If a tomato is bad, I know the person who touched it over 50 times to grow it from a seed. If the chicken's bad, I know its name and its god damned educational history. And if a steak is bad, I know the guy who planted the grass.

    What a concept.

    1. Re:I eat from farms by Anonymous Coward · · Score: 0

      Excellent. I expect mass exoduses from New York City every weekend as 8 million people go to the nearest farms to buy their food on Saturday. Should be great fun to watch.

      In other words, your advice is only useful in select edge cases, such as yours, and doesn't translate to the "real world".

    2. Re:I eat from farms by holophrastic · · Score: 1

      My advice is to you thusly: check out your local farmers' markets. Did you even know that farmers come to you?

      Please mod him up. City-dwellers should know that they can still eat farm fresh food.

    3. Re: I eat from farms by Zero__Kelvin · · Score: 0

      The problem is that the chicken seems to have a stronger educational background than you have.

      --
      Guns don't kill people; Physics kills people! - John Lithgow as Dick Solomon on Third Rock From The Sun
    4. Re:I eat from farms by guruevi · · Score: 1

      Only at marked up prices at the same cost and for no obvious scientific benefit though.

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    5. Re:I eat from farms by holophrastic · · Score: 1

      That you don't see the scientific benefit, suggests that there is none.

      You'll note the paradox inherent in the scientific method itself. Virtually everything that science has ever "proven" has itself disproven something that science had previously believed. So if science is forever getting better by fixing its mistakes, then it is forever making mistakes.

      Police investigations work with a similar paradox: that evidence is required. A lack of evidence does not mean that I'm not a murdered. It is just as possible that I am a really good murdered (for various values of good).

      So, for how long do you need to see no evidence that direct-from-farmers is scientifically better than via-walmart before you believe that there is no benefit? A day? A year? A life-time?

      You can compare statistical data all you like, but you'll also need to evaluate the collection of that data, and any biases that it might have.

      So I choose to say this: Patricia fed the chickens with carrots grown by Lisa, all on the same field, with no pesticides. I held the chicken (or could have). The chicken laid an egg. Patricia gave it to me, almost still warm. I buckled it into the passenger seat of my sportscar, and drove it home.

      As a general heuristic, I can be certain that no trucks, no fuel fumes, no warehouses, no factories, knowing the names and where the farmers live (i.e. on the farm), is all a good thing when it comes to risking food poison. Everyone's invested, no one can just get-another-job, and everyone speaks the same language (except the chicken).

      As another heuristic, I don't like the unknown. I don't know what happened to the egg-via-walmart, and I don't think you could find out for everything you eat there.

    6. Re:I eat from farms by guruevi · · Score: 1

      There is a similar argument to intelligent design though.

      I can certainly see the pro's if you are offended because your food died a cruel death (a very relative cruelty compared to wild nature).

      But food from a local grocer or butcher (even though I don't get food from Walmart due to both cost and quality) has a string of regulations from FDA and other agencies attached due to the volume and conditions. A local farmer often doesn't have to comply with the strictest set of regulations (often none at all). In most cases food from a grocer is thus safer to eat whereas food poisoning from a farmer often goes unnoticed (again due to scale).

      My objections though are that it is often more wasteful and costly to have a farmer travel and sell small amounts than a farmer selling large volumes of their produce. If it were at all profitable, "better" and manageable for all farmers to have their own supply chain to the city, we wouldn't have grocery stores.

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
    7. Re:I eat from farms by holophrastic · · Score: 1

      I'm going to say the same thing backwards.

      Grocery stores are the supply chain from the farm to the city. It's certainly not more profitable for farmers to sell direct. Volume and scale certainly bring about stricter quality control, and more obvious failures.

      When you build a building, anything from a house to a factory, to a subway tunnel, life support is always one of primary efforts -- in design priority, in timing, in cost. Ahead of temperature, and ahead of light, air quality is the number one concern. HVAC and ventilation in general is a huge issue in construction.

      Now, given all of that, saying that living indoors is better than living in a cabin in the woods because air quality is of top concern is silly. Air quality needs to be a top concern because buildings ruin air quality where a cabin in the woods does not.

      I'm willing to say that the same is true of FDA and grocery stores.

      The reason that the farmer needn't meet any controls is because the farmer is selling you the carrot that you see. We all understand that they took it from the ground and handed it to you. It is unprocessed in every way. (pesticides are a nice little exception to that, but it's one that everyone understands and can therefore query at the point of sale) And because you're there, speaking to the farmer, you can ask any question that you like, and you can get any answer that exists. So really, you're eating the carrot the way the ground grew it -- for better or for worse.

      But that carrot at walmart is very different. It went through many hands, many cities, many trucks, and there's no one that you can ask because the stock boy doesn't know. Hence, the FDA needs to get involved in order to protect the general (stupid) public from just assuming that anything sold is good -- it actually needs to be ensured to be good.

      Intelligent design is an end-run argument. It's an attempt to get it all right the first time. Science improves over time, by always starting from a point of incorrect. Intelligent design works if you believe, only because you believe -- god protects you. Science works because you plan to be satisfied within the known margin-of-error -- this snake oil doesn't work 100% always, but it does work 90%, half the time.

      But in the end, it really doesn't matter. Because when you look absolutely any situation, it becomes painfully obvious that there's a huge unknown, a huge risk, and you're the one who's going to be exposed to that danger. The only question is this: which unknown do you want risk?

      You've presented the choice very clearly. I can choose to risk that the farmer didn't notice the bad carrot, or I can choose to risk that the FDA didn't notice the bad carrot. My personal heuristics say that the FDA is a set of rules, and people with day-jobs, such that a bad carrot has many ways to sneak through, whereas the farmer cares personally and I can see 90% of the carrot's life in front of me (no transportation by truck, no warehouse storage).

      So what do I choose? I choose the third option. I get to know the farmer, and I get a tour of the greenhouse/fields, and I meet the people. I'm my own FDA as much as possible. I choose to rist that I didn't notice the bad carrot; because I know that I care personally.

  16. OK... by Baron_Yam · · Score: 2

    So... a blockchain why? Because Wal-Mart doesn't really need anything more than a regular old database for this purpose.

    1. Re:OK... by Vairon · · Score: 1

      Perhaps they want a system that can be used by multiple companies besides just Walmart. If I was a farmer whose food might end up at Walmart, Target, Whole Foods, etc why would I want to submit tracking data multiple times to multiple companies' databases when I could just submit it once to this 3rd party IBM based blockchain and then any end-company which uses it can have the info they need.

    2. Re:OK... by Bigjeff5 · · Score: 1

      Blockchains don't do anything you can't do already. However, the blockchain makes it easy to get very high granualrity of data with no extra cost, whereas with traditional tracking methods there is a not-insignificant cost to obtaining all that detailed information.

      The idea is simple and really quite brilliant. To create a blockchain of physical products, all you need is a barcode scanner/printer set up to generate new blocks for the block chain and a basic database that fits the number of items you sell, and you're basically done. The information needs to be uploaded, obviously, and your system needs to be robust enough to correctly handle everything that's going in, but the tedious data entry is gone.

      So the farm produces some broccoli, and each shipment gets a block with a hash tag. When that shipment goes to the distributor, the distributor scans the existing block, and uses that to generate a new block for each shipment of broccoli they pack up. There is no need to hit the database to do this, btw. As long as you have the original hash available, you can generate a new block based on that hash with ease. When that shipment arrives at the store, the store generates a new block for each box they receive, and then a new block for each package they put on the shelf. Now, when they need to recall a product, they can see what box the package came out of, and all packages associated with that box. They can see what shipment that box came from, and all boxes associated with that shipment. They can see what distribution center that shipment came from, and all assicated shipments from that center. They can see what farm it came from, and all associated products from that farm, and depending on how detailed the farmer got, they may even be able to see the field and row the broccoli came from.

      And all you need to do this is a database, and the ability to generate new hash tags from old hash tags. That's it.

      To associate all the data they get from a blockchain automatically into a database without using blockchains, they'd have to essentially re-create the chain by hand at each step. I.e. farmer ships broccoli to distribution center. A person at the distribution center records shipment date, farm, product, ect, and probably gives it some kind of serial number specific to that shipment. Distribution center packages everything up, but they have to be diligent about what shipment gets associated with what packages, etc. It's a normal thing, but it requires effort. This continues all down the line.

      The total effort to get this kind of information at every stage is so great that, in fact, most companies only track back to the distribution center level, and may not keep track of things like what specific box a product came out of. So if someone gets sick, they can tell you what company sold it, and ditch everything from that company for a given time period, but they don't have more information than that, so they wind up wasting a whole lot of product that is perfectly fine, because they simply don't know if it's fine or not.

      With block chains, it's easy to track that info.

      --
      Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
  17. The next Step by Anonymous Coward · · Score: 0

    ISO 9001: The Home Game

  18. Original IBM press release by Anonymous Coward · · Score: 0

    Original IBM press release

    http://www-03.ibm.com/press/us/en/pressrelease/50816.wss

  19. *Raises Hand* by hey! · · Score: 1

    OK, I'll be the one to say it: I still don't see the point.

    If you squint a little bit so the algorithms being used go out of focus, what you see is system into which information about events is entered and then extracted later to form an audit trail. This could be done on a stupendous scale with any kind of eventually consistent database.

    The usefulness of blockchain is that it implements authentication and non-repudiation without the need for (or indeed possibility of) of a central authority. For example, you need something like blockchains for Bitcoin so that a court can't take your drug profits away without your cooperation. They can torture you until you give up your password, they can install a keylogger on your computer to steal it, but they can't simply declare that bitcoins in your "possession" are now in the state treasury. Bitcoins are designed not to leave your possession until you say they do. Or at least some piece of software in possession of your cryptographic secrets.

    From a system design standpoint that's interesting, but it doesn't mean you need to bake that property into everything.

    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    1. Re:*Raises Hand* by bws111 · · Score: 1

      Decentralization is precisely the point. A farmer may sell his crops to dozens of buyers. Whose database is he going to update to say which field this particular truckload of lettuce was grown in? One of those buyers may make pre-packaged salads, provided to dozens of wholesalers. Whose database are they going to update to say which truck supplied the lettuce, and what factory/date/shift processed it? Whose database does the trucking company that moved the product to a warehouse update? What database does the warehouse update?

      Today, the answer to all those questions is 'their own'. This is why it takes long to figure out the source of something. Retailer has to ask wholesaler to look up where they got it. Wholesaler has to ask packager where it was processed and when. Packager has to ask farmer where it came from, etc. With blockchain, that is all unnecessary, the whole chain is available at every point.

    2. Re:*Raises Hand* by hey! · · Score: 1

      I understand decentralization is what they're after; it's just that blockchain isn't the only way to do that. You have to justify specifically why you need to use that architecture otherwise it's overkill.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    3. Re:*Raises Hand* by bws111 · · Score: 1

      Of course it isn't 'the only' way to do it. There is seldom only one way to do anything. They could do it all on paper if they wanted. They don't have to justify anything to you - they just reached a business decision that this is what they want to do. I would like to hear your reasons why you think it is 'overkill' though.

    4. Re:*Raises Hand* by hey! · · Score: 1

      The problem with blockchain is designed to make a tradeoff between a very specific requirement and high computational costs/implementation complexity. The requirement is this: in a system where literally no individual actor can be trusted, make it possible for everyone to be able to determine who owns a particular bitcoin. The solution is this: employ an audit trail of past transactions that is intentionally designed to be computationally expensive to construct.

      The strategy is that in order to repudiate a valid transaction or forge a phony transaction, you are forced to undertake a series of computations that are so difficult that the cost exceeds the likely reward.

      The audit trail in blockchain is just a mechanism by which it accomplishes its purpose; blockchain's not suposed to be a particularly good way of making an audit trail. There are much easier and simpler ways of doing that, e.g., a message-passing architecture, so if you choose blockchain you need to show why it is better for your application.

      So I can't tell you definitively whether the blockchain choice is wrong, because I don't know why it was chosen. However having watched fools play with golden hammers for decades now, I suspect it may be have been chosen for cachet. If so it's a monumentally stupid choice.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    5. Re:*Raises Hand* by bws111 · · Score: 1

      Blockchain is not bitcoin. The only thing computationally expensive in blockchain is an attempt to forge an entry. The expensive thing in bitcoin is the mining operation - there is no mining operation in blockchain. Blockchain is a template of what data is associated with something, and controls on who can see and modify portions of the data. There are 'smart contracts' which specify what parties must agree to a transaction (consensus). The stuff is all controlled by encryption, and does not rely on a central database.

    6. Re:*Raises Hand* by hey! · · Score: 1

      Never said it was bitcoin. I said it was designed to meet the needs of bitcoin, and does that very well.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  20. Fact and Fluff by Bruce+Perens · · Score: 1

    Fact: tracking the source of a potentially tainted product from a single receipt, instantly, can be helpful in finding the tainted product, testing it, stopping its distribution if necessary, and notifying the purchasers.

    Fluff: rather than use a bunch of simple database joins, we used a distributed cryptographic system providing reliable attestation of a transaction without dependence on a particular server, together with anonymity. We also swat mosquitoes with atomic bombs.

    1. Re:Fact and Fluff by bws111 · · Score: 1

      'Fluff' is claiming this could be done with 'a bunch of simple database joins'. For even a simple food product (say a bag a salad) there are many different companies involved. Farmers, trucking companies, processors, packagers, packaging suppliers, wholesalers, distribution centers, retailers. All with their own databases. All with their own database designs. All with their own database managers. All with their own database versions.

      Yeah, I guess it would be pretty simple to just get authorization to all those databases and whip up 'a bunch of simple joins'.

    2. Re:Fact and Fluff by Bruce+Perens · · Score: 1

      I think you are not considering the scaling issues. In a perfect world, your box of pepperoni would have a blockchain by which you could trace back to that mad cow and the farm it came from, and the guys who undercooked it, and the plant they work at, once someone got CJD. In real life the processors co-mingle meat at every stage, and the accounting load doesn't scale.

      I own very many devices that are capable of having an embedded serial number. For some reason, most of them have "12345678" or something equally inane programmed into the serial number field.

  21. Problem is customer service by ITRambo · · Score: 1

    Wal-Mart customer service employees never seem to have any sense of urgency when I have an issue. They appear comptent and are usually pleasant enough. They just don't move very quickly. How will Wal-Mart make sure that tainted food issues are handled immediately by people that are used to treating everything one way. Will there by a hotline, or are we expected to return with a receipt to customer service, who then may or may not act quickly. A plan doesn't work if the human training isn't complete.

    1. Re:Problem is customer service by Gilgaron · · Score: 1

      Nominally, in a fully tracked system, a store could automatically let everyone know next time they check out with their shopper's card or use the same credit card etc.

  22. Same as pharmaceuticals by Anonymous Coward · · Score: 0

    That's just tracking, aggregation and serialization, same as what is currently being implemented for pharma - a standard that all players in the industry have to conform to by 2017. That will fail at that, as the current project pipeline at my company demonstrates.

    Difference is that they're doing this with their own database rather than a national / international one with common formats, like GTIN.

    I'm guessing blockchain is a way to get their aggregation "naturally" (as in, you can deduct relationships between codes with the codes themselves), without having to commit an aggregation to the database.

    Smart.

  23. Genealogies across multiple systems by jacks0n · · Score: 1

    You can always compute nested sets from adjacent lists like people are suggesting if the entire adjacent list is on one cloud or system, but you can lose a whole branch if you lose a link instead of only losing that one link if one supplier is non-conforming or offline. It's not fake or fluff, it's error minimizing.

  24. Goldman Sachs Drops Out of R3 Blockchain Group by NewYork · · Score: 1

    https://news.ycombinator.com/item?id=13010016