The following article on interlinking the supply chain with blockchain technology is an opinion piece written by Johan Potgieter, cluster industrial software lead at Schneider Electric. It is Part 1 of a two-part series.
Blockchain technology goes by many names: game-changer, disruptive, futuristic and impenetrable. Names all well-deserved and valid. Initially associated with cryptocurrency, blockchain has well and truly come into its own and now includes health, transportation, disaster recovery and importantly, supply chain management.
Indeed, with its ability to create secure and transparent networks, blockchain has the potential to reshape the way we manage supply chains. According to Market Research Future’s (MRFR) report Blockchain in Supply Chain Market the market is projected to hit USD17.15-billion at a CAGR of 45.55% by 2030.
“The development of blockchain technology and its applications is driven by the demand for greater supply chain transparency and improved security in supply chain transactions,” says MRFR.
While blockchain has been around since 2009, when Satoshi Nakamoto brought Bitcoin and blockchain technology to the world, it’s important that we take a step back to fully comprehend its significance.
For one, blockchain technology is decentralised. Unlike traditional databases, which are typically controlled by a single entity, blockchain allows for multiple parties to participate in the network and verify transactions. This means that there is no central point of control and no single point of failure.
Another important feature is security; once data has been recorded on the blockchain (via cryptography), it cannot be altered without consensus from the network participants. This makes it virtually impossible for hackers or malicious actors to tamper with data on the blockchain.
Furthermore, there are several different types of blockchains which include public, private, and consortium blockchains. Private blockchains for example are only accessible to authorised participants who have been granted permission by the network owner.
One of the biggest challenges facing supply chain managers today is maintaining visibility across the entire network. As goods move from one location to another, it can be difficult to track it accurately.
Source: Schneider Electric