Blockchain technology in the technology industry is attracting a lot of attention. Although it is not a new technology, the recent rise of cryptocurrency has put the blockchain in the spotlight. The majority consensus is currently interested in the value and future of various cryptocurrencies that have recently unexpectedly flooded the technological space by exploiting the benefits of blockchain, but some visionaries have a completely different perspective and goals.
These visionaries are not very interested in cryptocurrency but in technology. Around the world, people are seeing the true potential of blockchain technology and are designing different ways to take advantage of, and benefit from, this new but mined technology.
Supply chain management is one of these areas where the Blockchain will certainly dominate space and change the industry.
The difficulty with present supply chain management systems
Too much-centralized information.
The main problem of the current system is the centralization of all the data associated with it. This may seem very practical, but when performing an inspection or monitoring, the system provides a wealth of digital data and very little relevant information.
At the time of production, the information can be stored digitally in an organization, but once the shipment is launched, the company does not have the necessary terminals to search for its product. Products have their own digital identity, but when shipped, the product as an entity is now considered a shipment.
The different shipping agents have their shipping data, which adds more digital information about the shipment. A multitude of data is present throughout the process, but they implicitly do not add any traceable relevance.
The game of mediators or agents – No transparency on the different shipments
Intermediary involvement is always perceived with a sceptical view, regardless of their benefits or process. At present, the only way to bring all actors and entities together on a consensus to agree on valid shared data, such as the consignee of the cargo, who is responsible for it, was to have an entity neutral that can process the data. And report all transactions made in the system.
The current system is entertaining limited users with roles to play to access the particular data type that renders the system opaque at each stage of the movement of the shipment. The end-user may not have any idea of initializing the entire shipping process, its starting point or even jumps. The same is true for the initialization user, who may not have the slightest idea of the delivery process in the case where several shipping agents are involved.
This leads to a tedious process to follow in case of discrepancies that may occur during the shipping process. In addition, a security breach can have a domino effect and result in huge losses. The higher the number of jumps, the lower the overall transparency.
Blockchain to disrupt the entire opaque system
The main advantage of the blockchain is the decentralization of all data. All transactions can be stored and managed on different network nodes that are updated in real-time. Transaction data is secured on the network with powerful advanced encryption and access provided only to the relevant entities.
Each transaction node provides evidence of how the goods were purchased, their compliance with the regulations, all the legal work associated with the transaction and when and how they are shipped from where they are shipped.
Blockchains enable business ecosystems that deal with suppliers, manufacturers, distributors, partners, and end-users to share and agree on critical information. By implementing the blockchain, they can do so without having to name a neutral entity to handle all the complex calculations related to trading, validating transactions according to the rules, before transmitting critical business information. Instead of having a central neutral entity, block strings synchronize all data and transactions on the network, and each participant checks the work and calculations of others.
Efficient transactions in real-time & No chance for mistakes
In the regular system, each time the shipment reaches the destination, it must be manually updated. These are the key points where an error can occur or even if the details of the shipment are not updated at the right time, the shipment can be seen simultaneously in two different places. This is a major problem when several shipping agents are involved in their own discrete and opaque systems.
With the blockchain, all connections are modernized in real-time, all players will have access to the most advanced transactions, reducing the situation in which a shipment exists in two separate locations.
The implementation of the Blockchain with the help of advanced automatic QR code tracking or bar code can update the transaction nodes for each real-time shipment and all players will be updated instantly without any margin error.
One of the main points of every system is security, whether financial services or any other service for which transactions play a major role. With conventional systems, where all the data is stored and stored in a single place or on a server, it is extremely dangerous for someone to tamper with transactional data, which can affect current transactions and make them useless or a problem.
With a distributed system, where all transactions are handled on thousands of nodes, modifying a few nodes has no impact on the system because each node validates the transactions of each. In the event of a discrepancy in the updated records on a node, the system would isolate that node and not allow it to make any changes to the system. Over time, this node can be corrected and will be synchronized with the system. It will also allow system administrators to track the disruptive node and take the necessary action.
The ability to isolate and track temperate nodes provides a significant security upgrade over the conventional system used to manage the supply chain.
The key to successful supply chain management is to maintain strong and transparent end-to-end communication. With the blockchain, transparency can be added to prove how the product was designed at the source, how it was handled, respected the regulations reliably and in real-time. Transparent and robust handling of all transactions and communications with complete traceability in minutes.
The blockchain in supply chain management will prove itself as a game changer, benefiting all entities, from the source to the destination agent. There is still a long way to go, but industry pioneers are constantly looking for ways to address the vulnerabilities and inefficiencies of today’s systems.
About Fusion Informatics
Fusion Informatics, leading blockchain development company, We provide the on-demand blockchain services like private blockchain, Ethereum development, Hyper ledger development, smart contract, solidity, Cryptocurrency wallet, exchanges, and supply chain management. We are well aware of the significance of Blockchain as a Service and its persuasive capability towards the advancement of the future.
Fusion Informatics includes a group of specialists who strive to overlook challenges in technology. We are especially concerned about the needs of clients throughout the development process. We are the spearhead for a variety of industries in curating BaaS that will help companies. We are extremely motivated and dedicated to the needs of satisfying clients through our solutions.