In recent times, blockchain has become a buzz word that has been associated with cryptocurrencies. Bitcoin, Ethereum and other such currencies have made the term very popular, and they can be associated with the high prices in the crypto market and the immense returns offered. Blockchain is the underlying framework that’s used for thousands of cryptocurrencies out there, but there’s more uses of blockchain to industry than the crypto market.

Blockchain, which is a distributed digital ledger, has many applications and can be used for any exchange, agreements/contracts, tracking, and payments. The term distributed digital ledgers sums up the function in three words. Every transaction is recorded on a block and across multiple copies of the ledger that are distributed over many nodes or computers, thus making it highly transparent. The system is also highly secure because every block is linked to the previous block, and any changes to information will be flagged by other nodes in the system because of the mismatch. This is the consensus system, because all entities have the same version of the ledger, there won’t be any dispute arising. The very things necessary for reliability and integrity in a supply chain are provided by blockchain.

Imagine whenever a product changes hands, the transaction could be documented, creating a permanent history from manufacture to sale. It dramatically reduces time delays, costs, and human errors that plague transactions today. Experts suggest blockchain could become a universal operating system before long. Tasks such as recording the quantity and transfer of assets, tracking purchase orders, assigning certifications or certain properties of physical products, linking physical goods to serial numbers, and sharing information about manufacturing process, assembly, delivery could be transformed.

Blockchain offers the following advantages to the shippers

  • Enhanced Transparency
  • Greater Scalability
  • Better Security
  • Increased Innovation.

Some of the users of blockchain in their value chain are Walmart, De Beers, BHP Billiton, IBM Blockchain and many more.

 

Sources:

https://www.forbes.com/sites/bernardmarr/2018/05/14/30-real-examples-of-blockchain-technology-in-practice/#7d3f5c0e740d

https://www.supplychain247.com/article/why_blockchain_is_a_game_changer_for_the_supply_chain