How is blockchain technology making the supply chain smarter?
A seamless supply chain is a must to have a strong and successful business. Irrespective of the type of industry, the supply chain is the underpinning of the same. With time, the complexity of this system has increased. To make the supply chain work seamlessly, many companies are now eyeing at Blockchain and IoT when these two technologies will amalgamate and sync with the current supply chain management system of the organization.
Some stats worth a watch
As we have mentioned above, supply chains have become complex and distribute, there are many involved in the supply chain. Companies are trying to adopt technologies which can not only manage their assets but also keep a tab on them. Since 2018, the Blockchain and IoT market has grown from USD 30 million to USD 113 million and is expected to grow to USD 3 billion by 2024. Don't use plagiarised sources.Get your custom essay just from $11/page
How is the Blockchain impacting supply chain?
Some of the key features of Blockchain that can work for the supply chain are:
Immutability
Provenance
Data security
Transparency
Product source- One of the key concerns for any end-user is to know about the source of the product. With the help of Blockchain technology, it will become easier to know the source of the product. Blockchain is an accurate record of information where all interaction between IoT devices is saved as history. One can easily access all the information pertaining to predict like when was the medicine manufactured, or the date of packaging etc.
- Smart contracts-Cargo and shipping industry also makes use of Blockchain and IoT. Smart contracts are pre-programmed contracts which are executed wince the conditions are met. The terms and contracts between the parties are written in computer codes, and when the conditions are met, the program executed the financial transaction. It will make the entire process faster.
Immutability- Security of information is the prime concern for most of the origination. In the supply chain, an industry which currently use the digital medium to save the information is vulnerable to attack. There is a greater probability of information being hacked. But, with Blockchain, we can expect the system to be safe and data more secured. The immutability feature of Blockchain would prevent falsification of supply chain payment transaction, tampering of data etc.
Challenges that Blockchain needs to meet-
Although Blockchain’s legacy has grown with time, there are a certain set of challenges that it is facing. Despite its popularity, Blockchain has not become a mainstream technology. Many companies are still sceptical about the longevity of this technology. Besides, there is no system which can guarantee 100% security, so how will Blcockhain overcome very minimal probability of data insecurity.
The Future-
The research on improvising this technology is increasing, and so is the need for Blockchain expert who can bring this change. By enrolling for Blcockhain certification program, one can get a complete insight into this technology and understand its implementation. To know more, you can enrol with Blockchain Council and become a certified Blockchain expert.