Do You Need Blockchain Technology?Venkat Srinivasan
Recently, you may have heard about blockchain technology everywhere. Its omnipresence in today’s publications and trade magazines gives the impression that it will revolutionize the world in the same way as the internet. Is this true? Let’s find out.
What is Blockchain?
Although blockchain technology is most commonly associated with cryptocurrencies like Bitcoin, the underlying principle can be applied to almost anything, including the supply chain. Even with its widespread use and versatility, the premise is actually very simple. Blockchain is essentially a digital distributed record. Every action is recorded on a block which is spread across every element in the system, in this case computers. This ensures that every member of the system can see the entire history of the record, increasing transparency.
Benefits of Blockchain in the Supply Chain
The inbuilt transparency of the blockchain system removes the need for reliance on a source. Any and all discrepancies that may occur are fully visible, ensuring that everybody in the system knows and understands all the actions that have occured. This is especially useful in a supply chain, where an error in one part can severely impact everything else. As a result, blockchain technology greatly improves the trust and reliability within the supply chain.
The Future of Blockchain
Although blockchain technology is very new, its most likely going to remain into the foreseeable future as more and more businesses are adopting it. As its popularity increases within the public, one has to question how governmental laws and regulation will affect blockchain technology. Although it’s impossible to know for certain, it’s very likely that blockchain protocols will be mandatory within certain sectors, similar to product labeling and audit regulations.
One thing we know for certain is that blockchain technology will dramatically change what is expected of the reliability within a supply chain. Suppliers who don’t use blockchain may experience suspicion and distrust from their customers. This pressure from the customers and possible governmental regulations mean that blockchain may become inevitable some day. TPSynergy’s supply chain solutions come equipped with blockchain ready software to ensure trust within your supply chain. Click the link below to learn more.