Let’s look at what is broken, how the unique attributes of blockchain could help and look at a few examples of blockchain already impacting supply chains. Our current supply chain is broken in several ways.
Over a hundred years ago, supply chains were relatively simple because commerce was local, but they have grown incredibly complex. Throughout the history of supply chains there have been innovations such as the shift to haul freight via trucks rather than rail or the emergence of personal computers in the 1980s that led to dramatic shifts in supply chain management.
Since manufacturing has been globalized, and a large portion of it is done in China, our supply chains are heavy with their own complexity. It’s incredibly difficult for customers or buyers to truly know the value of products because there is a significant lack of transparency in our current system.
In a similar way, it’s extremely difficult to investigate supply chains when there is suspicion of illegal or unethical practices. They can also be highly inefficient as vendors and suppliers try to connect the dots on who needs what, when and how.
While the most prominent use of blockchain is in the cryptocurrency, Bitcoin, the reality is that blockchain—essentially a distributed, digital ledger—has many applications and can be used for any exchange, agreements/contracts, tracking and, of course, payment. Since every transaction is recorded on a block and across multiple copies of the ledger that are distributed over many nodes (computers), it is highly transparent. Read more from forbes.com…
thumbnail courtesy of forbes.com