What Is the Hype About Blockchain Technology?
Blockchain is a decentralized database that holds records of digital data events in a manner that makes them tamper-resistant. Whereas the majority of users may access, scrutinize, or add to the data, they cannot modify or erase it. The original data stays put, leaving a permanent and unrestricted data trail, or chain of transactions. Blockchain thus increases transparency and generates trust between parties with conflicting interests.
Interesting Facts About Blockchain
- Companies such as Walmart, British Airways, FedEx, Maersk, and IBM are keen to join the bandwagon of implementing blockchain into their supply chains.
- Blockchain is sure to be a game changer in the logistics industry.
- Blockchain is anticipated to be a game-changer for improving consumer confidence.
- Blockchain is anticipated to be a technology that can push us into the next industrial revolution. It offers fresh models for undertaking business in finance, supply chain, and transportation.
An Overview of Blockchain in Supply Chain Logistics
Blockchain was initially used as the backbone of cryptocurrencies such as Bitcoin and Ethereum. Blockchain technology has broader applications in both the private and public sectors. A number of corporations have already begun testing and implementing blockchain technology to improve the efficiency and traceability of day-to-day business processes. Among the most talk about use cases is the application of blockchain to solve current challenges in the supply chain and logistics industry.
Supply chain management has grown more involved with the rise of globalization, making it harder for manufacturers, suppliers, and retailers to manage supply chain processes efficiently. For example, a study found that supply chain inefficiencies cost businesses in the UK nearly two billion dollars per year. This is widely due to the time spent preparing international shipments.
Another reason businesses are adopting blockchain in supply chain logistics is to meet consumer demand for greater transparency. Consumers want valid proof of the origin of products, the date the product was manufactured, if harmful chemicals were used, and if the product was ethically sourced, among other concerns.
Blockchain technology offers a secure and transparent way to track of all types of transactions. Each time a product changes hands, the transaction is documented, generating a permanent record of a product, from production to sale.
Benefits of Supply Chain with Blockchain
Supply chain management is among the most apparent and beneficial applications of Blockchain technology. It can be expected to revolutionize the supply chain industry.
Blockchain in supply chain management offers the following benefits:
Improved Transparency: Recording a product’s journey across the supply chain discloses its actual source and touch points. This enhances confidence and helps eradicate the partiality found in today’s supply chains.
Better Scalability: With global supply chains, an interoperable system is needed to track products from start to finish. NeuroChain is developing a blockchain that is both scalable and interoperable with other blockchain databases.
Better Security: A permanent, distributed ledger with codified guidelines eradicates financial fraud and simplifies audits.
Increased Invention: Blockchain technology promotes innovation by supporting the development of applications. Applications can be built on NeuroChain’s network, creating countless possibilities.
The Current Logistics Environment
The information flow in the current trade environment is complex and involves many parties and extensive records (payments, invoice among others). As such, keeping track of every single transaction and documents is cumbersome and sometimes essential documents get lost or forged, creating chaos in the system. This may lead to financial loss.
NeuroChain’s blockchain technology can link various ledgers and data points while upholding the data reliability among all the parties involved. The features of transparency and immutability of blockchain technology make it useful for eradicating frauds in supply chain and uphold the credibility of the system.
Implementing Blockchain Technology
The supply chain industry is progressively dependent on technology to advance their processes, reduce costs and increase transparency. Blockchain technology offers a solution to each of these supply chain challenges. Companies are exploring ways to screen the way their supply chains presently work and implement the transformation that the blockchain technology has to offer. Supply chain teams should take notice of the newest technology developments in the blockchain space and find viable ways to implement the technology in the current systems. The use of blockchain in supply chain management will work as a game changer by eradicating the susceptibilities and the ineffectiveness of the existing system.
NeuroChain’s blockchain solution offers all the functionalities of current blockchains, and it adds an important feature: scalability. Scalability or interoperability is the ability of a blockchain protocol to communicate with other blockchain protocols. Since businesses may find that other companies along the supply chain are using different protocols, it is vital that these protocols can interact. For supply chain managers, NeuroChain offers the functionality and scalability needed to solve current supply chain challenges.