Blockchain technology is an application of digital and trust networks for social, professional, or government use, such as verifying transactions, recording assets ownership, ensuring energy market infrastructures, digitizing property deeds, verifying state-issued identity, and much more.
How can we achieve global decentralization through blockchains?
The consensus protocols that makeup blockchains reduce a central point of failure and a single point of failure into one. By removing the need for a controller to run the blockchain infrastructure, it gives end users decentralized control and decentralized authentication of the underlying state.
This means that the technology can replace siloed organizations, partnerships, and people with distributed applications to achieve a global decentralization and permissionless environment.
Why should we utilize this technology?
Blockchain offers a number of potential benefits:
There are a number of benefits that a distributed ledger could offer, and the technology is currently still in its infancy and rapidly growing in complexity and adoption.
Supply chain management: The major benefits of Blockchain technology for supply chain management are:
Blockchain technology can cut out intermediaries and go straight to the source of data and transactions, removing the need for middlemen.
Investing in the right companies will mean firms in supply chain management are able to stay relevant and competitive in a changing industry landscape.
How can blockchains be used for supply chain management?
One of the most important aspects of Blockchain technology is its flexibility.
For example, there is no hard and fast rule that a blockchain must be used for tracking a specific supply chain.
In fact, blockchain can be used for a number of different purposes, depending on the needs of the business.
Partnerships: Blockchain technology allows for private networks to collaborate, with different parties securing their information with their own private keys. This is advantageous to organizations as it means the involvement of intermediaries such as lawyers and accountants is reduced and the process of transferring data can be much more streamlined.
Proof of Existence: To prevent document forgery and to protect business relationships, each document in a company’s ecosystem could be checked by having the hash of the document compared to a record stored on a blockchain.
To prevent document forgery and to protect business relationships, each document in a company’s ecosystem could be checked by having the hash of the document compared to a record stored on a blockchain. Smart Contracts: Smart contracts are contracts stored on a blockchain that have been pre-programmed by the software development teams.
Smart contracts are contracts stored on a blockchain that have been pre-programmed by the software development teams. Voting: Blockchain technology could be used to help people make their votes count. Instead of relying on the intermediary of the voting center, by using smart contracts the public could have the ability to have their vote counted as well as enable the democratic process to become a more sustainable ecosystem.
Blockchain technology could be used to help people make their votes count. Instead of relying on the intermediary of the voting center, by using smart contracts the public could have the ability to have their vote counted as well as enable the democratic process to become a more sustainable ecosystem. Voting by Proxy: By using the voting technology of blockchain, it could be made possible for people to cast their vote without having to physically attend a polling station.
The most important question is, why are we utilizing blockchains at all? There is no best use case for blockchain technology that can’t be achieved using something else.
The implementation of Blockchain technology has been evolving and maturing over the past years, with the software continuing to improve and evolve. This means that it’s vital that we start looking beyond the hype and learn what the next steps are.
The application of Blockchain technology will continue to evolve with the blockchain community. This means we are only at the beginning of a long journey. By looking beyond the hype, there are practical ways to create value from Blockchains, be it using them to run your entire supply chain or simply run it as a network, rather than a store of records.
What we can expect in the next 5 years
There is no one vision for how Blockchain technology will be used, it will evolve organically, and it will need the cooperation and collaboration of many different groups within the supply chain. This is true in any business, but it is more relevant in a decentralized ecosystem.
Blockchains, in particular, requires the involvement of people and companies outside of the supply chain.
These are the areas of expertise that will help build the ecosystem and the infrastructure that will enable new applications. A lot of these will fall to Blockchain specialists as they will have the skills to help build the core technology. There is a huge amount of communication to operate successfully. The communication between these participants can’t always happen between everyone else.
If the supply chain of a company were to increase in complexity, so too would the need for people with skills, like Blockchain developers, accounting experts, architects and law firms to work together.
The increasing complexity of the supply chain in comparison to its starting point will require industry participants, to collaborate and communicate to collaborate in a more effective way.
Facilitating growth and development
Being able to effectively develop and manage the supply chain of a company requires the use of tools, technology, and talent. That’s where we’re at now.
In the early stages of the development and deployment of Blockchain technology, the only direction the market will move will be upwards. Companies that are open-minded, adaptable, and ready for the challenge of managing a decentralized ecosystem will be the ones that benefit from increased capacity.