Do you ever wonder about the authenticity, safety, and legitimacy of the shirt you wear, the imported wine you enjoy, or the food you purchase from the mart? Despite your best efforts, the answer is likely no. It boils down to trust.
You trust because there's no legitimate means to answer these questions definitively. So, you trust and choose to use the product. If the quality doesn't meet your expectations, you have the option to opt-out or compromise and use it. But what if there was a way to eliminate these options and instead enjoy things with guaranteed safety and fairness?
Indeed, it's surprising.
Blockchain technology makes all of this possible. For the uninitiated, Blockchain technology made its debut with the breakthrough cryptocurrency Bitcoin. Simply put, a blockchain is an open and shared ledger that is tamper-proof. While it began with Bitcoin, the applications of Blockchain go far beyond that, especially in areas like Supply Chain Management (SCM).
In commerce, supply chain management (SCM) involves managing the flow of goods and services, encompassing the movement and storage of raw materials, work-in-process inventories, and finished goods from the point of origin to the point of consumption.
Within SCM, a supply chain is a connected network of individual resources, organizations, and technologies involved in the manufacturing and sale of a product or service. It starts with the origin of raw materials and ends with the delivery of the product or service to the consumer.
Properly implemented SCM can:
Supply chain management on the blockchain addresses many legacy challenges. Consider this example: You need a rare and expensive medicine for cancer treatment. The packaging contains IoT chips (microchip sensors) that record every detail from the manufacturing unit to your hands. This information is securely stored on a blockchain ledger.
Now, you can scan the medicine to trace its entire journey. This integration of IoT with Blockchain allows verification, eliminating blind trust in the process. This transparency not only increases sales but also provides valuable data for manufacturers to enhance their operations.
Another real-life example is Everledger, which uses blockchain to create a diamond provenance protocol. Consumers can scan diamonds to know their entire history, ensuring authenticity and ethical sourcing.
In summary, Blockchain offers several benefits in Supply Chain Management:
While Blockchain won't eliminate all SCM challenges, it effectively addresses many legacy issues. Combining blockchain with AI, smart contracts, and IoT can further revolutionize supply chain management.
At Minddeft, we specialize in leveraging the potential of Blockchain technology, including Ethereum, Hyperledger, Quorum, Python, and React. Contact us to explore how we can bring technological innovation to your business.