Blockchain technology is the reason behind the success of Bitcoins. This new-age tech has made complex supply chain operations effortless alongside increasing their efficiency. Besides cryptos, this particular tech has also gained laurels in many other fields. First, let us understand what this technology is!
Blockchains are a ledger or record book where transactions are present. And spread across networks. They are based on DLT or distributed ledger technology, a decentralized database managed by numerous participants.
Some properties of DLT that make them increasingly beneficial are:
- Highly encrypted and secure transactions.
- Transparent and distributed ledger that all its managers can access
- A programmable interface where you can run applications of different kinds.
- Recorded and time-stamped transactions
- Immutable and secure storage of data, which makes them very difficult to alter.
- The privacy of the participants who manage and keep track of the data is maintained.
The features of DLT blockchains mentioned above make it a secure interface for the trading of cryptocurrencies.
Now let us look at how Blockchains have positive implications on the supply chain management process beyond the world of cryptocurrencies.
- Better traceability: Distributing, planning and manufacturing products are all features of the supply chain. The usage of blockchain tech can, however, simplify this complex process. The easy, efficient and accurate tracking and recording facilities of blockchain make it easier for their managers to track and manage their products from the beginning to the end.
- Elimination of the manual process: Supply chains can also run their operations through a digital interface. However, some outdated supply chains are still using paper and a pen. Although a verified process to manage supply chains, the manual procedure can be tedious and hectic to keep track of large and complex transactions.
Blockchains work on a digital interface, which can help solve this problem. They come with reliable and distributed recording features, which justifies replacing the outdated manual process. This is where the importance of bitcoins-evolution.com figures in, too.
- Quick and efficient transactional procedure: Blockchains can efficiently work without the involvement of any bank or payment service providers. As a result, the payment terms can be resolved quickly using this distributed ledger. Only the supply chain participants and managers are allowed to view the process of settlement. Henceforth, making blockchains are very transparent, secure and highly accurate when making big and complex transactions.
- Highly reliable and integrated interface: The data on blockchains are tamperproof, credits to the accurate time-stamping of data, which is difficult to destroy. Once data is uploaded in a blockchain, they are time-stamped and permanently recorded in the DLT.
Also, all managers can immediately view data when they are uploaded on the ledger and immediately time-stamped. This creates better transparency of data and legitimizes the records.
Usage of Blockchain Technology by Big Companies:
Today blockchains are increasingly being used by big companies related to finance, banking, tourism, jewellery, healthcare, food and many more. Let’s have a look at companies like IBM, for instance. Using blockchain technology:
- The organization has partnered with retailers, suppliers, growers, distributors and many more in the global supply chain to regulate and manage food safety.
- Blockchains have emerged as a new and efficient tool for the logistics and supply chain industry. Today, distributed ledger is being used to manage assets, regulations and audit of sales and supply etc.
- The adoption of cryptos as a form of payment and eliminating middlemen like banks and other payment service providers have also made it easy to replace manual data recording methods with blockchains. The usage of smart contracts is yet another perk of using Blockchains.
- Widespread blockchain adoption still faces some challenges, but this modern and innovative process is designed to break many complex barriers in years to come. In short, the blockchains will revolutionize the supply-chain management industry.
We hope this article has brought valuable insights to your perspective of blockchains and their implications on the overall future of the supply-chain management industry.