How will blockchain development change the supply chain?
Blockchain, a distributed ledger technology that started as the underlying framework for Bitcoin exchange, has now evolved to become a leading technology today. Most of the industries are now using or exploring ways to incorporate Blockchain technology. The unique set of features of Blockchain makes it one of the most popular options for companies who are looking to enhance their efficiency. It is expected that the blockchain market will grow with a CAGR of 57.6% between 2017 and 2025. This massive increase in percentage shows that the application of Blockchain is also going to increase time, and this massive development is not merely limited to just one field. Rather Blockchain finds applications across the different industrial segments. The focus of this blog is going to be on the supply chain.
The supply chain industry forms the core of most businesses. A seamlessly functioning supply chain system is important to ensure that the product reaches its destination on time and with minimal delay. Despite being such an important part of the system, the supply chain system suffers from certain issues like
1. Lot of paperwork
2. Difficulty in the tracking of product
3. Access to data
4. Data security
5. A lot of third-party intervention
There are other sets of problems, but these are the key issues that Blockchain can easily address, and in this blog, we will cover the same.
How will Blockchain address the problem of the supply chain system?
Blockchain is a distributed ledger technology that works on peer-to-peer interaction. It means that there is no third-party intervention, which adds to the cost-effectiveness and efficiency of this system. Some of the key features of Blockchain are:
· No third party intervention- One of the key features that differentiate Blockchain from other technologies is no third-party intervention. The direct interaction between the two parties ensures that the system works faster and there is no delay. This will eventually make the supply chain system more efficient, which is otherwise governed by third parties.
· Easy data tracking- When the information is entered in a distributed ledger, it is time-stamped, and the entire information is stored chronologically. Also, the information is stored in the form of blocks, and they are in sequence, which means if there is any new addition or alteration, the information will get time-stamped; hence, tracking and tracing of information becomes easier, and this feature also adds to the transparency of the system.
· Data security- Another key problem that Blockchain addresses are that it offers data security. Within the Blockchain, all the information is encrypted cryptographically. It makes the data highly secure. Penetrating the system and altering it would be difficult; thus, it will add to the security feature.
Concluding thoughts
These are some of the key benefits of using Blockchain for the supply chain industry. In the times to come, we are going to witness a growing application of Blockchain. To ensure the seamless integration of Blockchain with the supply chain system, we need trained and qualified professionals. So, if you see yourself growing as a Blockchain expert, then this is the right to enrol for the blockchain course online with the Blockchain Council today. It is a leading online Blockchain certification platform that covers all the core concepts of Blockchain and its application. For more information, connect with the Blockchain Council today.
