The concept of supply chain has been around for a long period of time, yet, since its appearance, the number of developments meant to improve supply chains has been quite small. However, the blockchain network may just represent the boost that is needed.
For those who do not know, a supply chain is a term normally used for a dynamic, but also complex, demand and supply network. It usually works via a system of activities, organizations, people and resource that are all involved when it comes down to moving either a service or a product to a customer.
Blockchain technology has always been considered as full of potential, considering the fact that it’s growing in popularity every day, and that it can be used for a lot more than ensuring digital currency transfers.
With this in mind, there are a total of five clear reasons, explaining why the implementation of the blockchain network could have a possible effect on worldwide supply chains.
The blockchain network is popular for its ability to verify each transactions being carried out in multiple ways, thus getting access to an interesting form of consensus.
When it comes to handling bitcoin, a transaction needs to be confirmed six times, to consider it as fully valid, thus securing it forever onto the public ledger, as a valid transaction that has taken place on the block. This complex verification method ensures that each and every valid transaction goes through, while countering all types of possible mistakes.
Yet another great benefit of the blockchain network is its immutability status. With this in mind, once a transaction has passed the verification process, it will be validated and recorded on a block of data, which cannot be reversed or altered in any form. Based on this, it is impossible for any third party to erase, manipulate or undo data that has already confirmed, unless there is full agreement on all sides.
Using complex cryptographic measures, users are enabled to authenticate transactions as soon as they are confirmed and recorded, thus making the transaction in question, both irreversible and closed.
Last but not least, the blockchain offers numerous solutions to the problems that users have to deal with, both in terms of digital currency management, but also for other purposes.
The R3 Chief Technology Officer (CTO), Richard Brown, stated that: “There is currently a whole industry set up to reconcile and audit all these separate ledgers, and you can’t easily connect them. This comprehensive shared data source could be a real benefit.”
While the supply chain industry does indeed seem to work decently, there are a couple of fundamental failures, that all supply chains deal with on a constant basis. Not only this, but there is also a clear and distinct risk of loss, because of the well-known possibility of human error. Turning the entire supply chain into a computerized one can rule error to 0, while also increasing the speed and efficiency of the network in question.
Judging by the current popularity trend experienced by the blockchain, the technology is quickly gaining momentum, as blockchain-based start-ups of all kinds are appearing throughout the world.
Based on everything that has been outlined so far, what do you personally think about the blockchain network’s ability to improve the worldwide supply chain for all sorts of products and services? Let us know your thoughts in the comment section below.