Blockchain can transform Supply Chain like never before
Blockchain is one of the most talked-about high-level technology topics of the past decade. One of the main reasons for that is because of the fact that it is what from under the hood powers the existence and operation of “Bitcoin” the world’s most popular cryptocurrency.
Even though Blockchain technology can be used for a variety of different reasons, as of today, it is only known on a big scale for its application of cryptocurrencies and peer-to-peer financial systems.
In this blog post, I want to share and talk about how Blockchain can and is actually making the global Supply Chain system better by making it more transparent, decentralized, trustworthy, and be positively beneficial for both the companies that have such a system and its end-use customers.
Now, before I proceed further, I want to add an official snippet about Blockchain that is totally skippable for those that already know about it.
Wikipedia snippet about Blockchain: A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree). The timestamp proves that the transaction data existed when the block was published in order to get into its hash.
As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks. End of the snippet.
The current Supply Chain system that is being used by companies and businesses to produce, manufacture, and transfer the goods from one point of the economic cycle to another is very much closed even among these companies themselves and can be manipulated to a certain extent for their own benefit.
There is basically no option to verify a provided piece of information such as when a tradable material was produced and the list of access/transactions that were made around that particular material throughout its Supply Chain lifecycle.
Now, coming to a Blockchain-powered Supply Chain system as an alternative to the previously mentioned traditional Supply Chain system. All of this can be done differently and better for everyone involved in the economic cycle from the business to the end consumers of its products and services.
Since Blockchain is simply a decentralized database of records and information that can only be added and not edited without having complete unauthorized access to the network. The Blockchain powered Supply Chain system can be more trustworthy, secure, and transparent.
Blockchain can make the Supply Chain system more efficient by making the data more openly available and accessible between the involved parties alone while eliminating the expected level of business waste since access at all points can help people act and take better decisions.
The information that will be made available through a system like this can be trusted blindly since the Blockchain network of records cannot be edited once created at a certain process step. This will make the Blockchain-powered Supply Chain system foolproof while simultaneously increasing the level of trust among the involved parties.
And, as an example to show you the reader that what I have discussed in this post up until now is very much implementable. I would like to highlight two global-level big-size companies that have already started to use a Blockchain-powered Supply Chain system on a smaller scale.
- Walmart has got started using a Blockchain-based Supply chain to check and verify the production dates of the edible food-based products in its stores to ensure their good condition in a foolproof method.
- FedEx on the other hand is using the Blockchain to have a more authentic tracking of its goods in their transport cycle to avoid and handle any sort of customer complaints in a better and trustworthy way.
It’s great to see such a gigantic size of businesses step forward to use Blockchain into their system to make themselves and their company better.
If anything, this is only the start of something big for Blockchain. Things are going to get only great from here. And, we humans are indeed going to benefit to a very good extent from the rise and application of Blockchain in different fields and industries without any iota of doubt.
Let’s hope for nothing but the best.
Thank you for reading this, and God Bless Everyone.
Intro About Myself
Bio: Genius, Polymath, Entrepreneur, Philosopher.