Why blockchain is a game changer for the Supply Chain
Blockchain technology will no doubt, bring about a greater efficiency to the supply chain than ever before. It has the potential to transform the procurement and supply chain. Blockchain, a distributed database that holds records of digital data or events, are tamper-resistant and data cannot be changed or deleted. The original information is retained, thereby leaving a permanent and public information trail, or chain, of transactions. Think of it like this: if the entire blockchain were the history of banking transactions, an individual bank statement would be a single “block” in the chain. Unlike most banking systems, however, these transactions are not controlled by a single organization. It can only be updated through consensus of a majority of participants in the system. Blockchain can be seen as a record-keeping mechanism that makes it easier and safer for businesses to work together over the internet.
How the Blockchain Technology Will Affect the Supply Chain
Blockchain technology allows us to more secure and transparent track of all types of transactions, which can also rub off on the supply chain if used. For every time a product changes hands, the transaction could be documented, creating a permanent history of a product, from manufacture to sale. This method helps to extremely reduce time delays, added costs, and human error that plague transactions today.