Trading goods have always been a huge industry with complex processes. Take transportation and tracking goods – there are so many actors involved in this process. Huge sums of money are spent. The entire process is so complex, time- and efforts-demanding and expensive; thus, a new solution is needed. Can the blockchain supply chain be the one? There are different opinions on that.
First of all, let us clarify what blockchain is. The blockchain is a technology, that was initially invented for bitcoin. Now its meaning and application are much wider than they were a couple of years ago. We can compare the blockchain to a constantly increasing list of records, or blocks, which are connected with the application of cryptography. The connections are performed in a way, that changing a block that is deeper in the chain without changing all chain parts is impossible.
The blockchain has found application in many fields, and now, it’s changing the supply chain with record speed. The technology application in real life is still being tested, however, some companies are already trying to implement a real game changer in their projects,
How can the blockchain supply chain change the entire goods shipping and tracking industry? Most companies see the potential and the advantages that the technology has:
- The blockchain can provide the transparency level that is lacking in the supply industry now;
- The blockchain can prevent unauthorized data change;
- The blockchain can provide more security in the industry.
The blockchain supply chain could lower the costs of goods tracking and grow the customer confidence in products. For example, many famous brands are faked. Faked models are significantly cheaper than original ones, however, they might look very decent. There are two outcomes and none of them is profitable for the brand: Check it out at KINESIS
- people buy fake things because they look like original ones, but are much cheaper;
- people prefer to avoid original items because they might be faked.
The blockchain supply chain and the blockchain tracking could have helped to avoid these issues. Making changes in the blockchain is practically impossible, so, once a data is entered, nobody would change it. That’s why product tracking would provide genuine information about the product and its origin.
The main application fields of the blockchain are gold industry and diamond mining industry. There are projects that would enable tracking of gold and diamond from their initial stage, mining, till the final stage, jewellery manufacturing or industrial application. In these cases, the blockchain would allow eliminating many social issues, such as the exploitation of children during mining and many others.
The main disadvantage of the technology is that it is still in its development and testing stage. There are many ideas about the blockchain and its implementation in modern life; however, there are a few solutions that are implemented. Huge volumes of work are still to be done, many solutions are still to be tested, rejected, tested again, a lot of money is to be invested before the blockchain will find its rightful place in the world.
However, changes are coming, you can read more detailed information about them on https://kinesis.money/en/guides/supply-chain-management-crypto-era/. Nobody knows for now, where this technology would lead us; however, it is definite that blockchain is going to change the way we live completely.