Blockchain technology is a solution for the industry and can be applied to a wide range: from retail chains to diamond industries, all over the world. You can match it with banking systems or your own chain of Blocks. However, today we will observe in detail how Blockchain influences the Supply industry.
There are differences between the needs between industries, for example, two different sectors can not have exactly the same needs, right? However, problems in the supply chain, in most cases, remain the same. All need producers, suppliers, intermediate companies and customers to buy the product at the end of the day. Blockchain, with its technology, can help everyone by providing a set of services included only for that specific industry.
Different blockchain therefore has different solutions. Ethereum, for example, proposes intelligent contracts while Dash offers us nodes. Both offer accounting records that can assure both parties when they do business. In addition, the transfer information can be constructed to provide an accurate account of all transactions, agreements and parties involved. Some blockchain systems can offer a complete network of the supply chain, where customers can buy goods directly and receive them using the token / currency as a result of the blockchain technology, easily, safely and economically.
Smart contracts: what is better than an automated process of sending and receiving information and funds? Add to that contract the terms that must be met for the payment to be made and have a secure way to guarantee your impeccable transportation of data and money. This is quite interesting for the supply chain, where numerous payments must be made during the day. With an intelligent contract application, one can manage multiple transporters / producers with ease, simply by setting the rules of the game through the programmed blockchain intelligent contracts.
Tokens / coin: Many companies operate around the world today, with manufacturers, suppliers and even customers spread around the world. The use of a single token / coin of blockchain technology can accelerate payments and keep tariffs and exchange rates very low. At the same time, making money standardized under a cryptocurrency would do wonders for accounting and measuring results.
Accounting records: Keeping up with invoices, goods transported and inventory level? Then blockchain offers a feature where all transfers are recorded. It can be seen as a simple accounting, but the truth is that you can put any type of information there with good programming skills. Therefore, the accounting records, irreversible in blockchain, not only serve as a financial information tool, but also as an inventory tracking system that can provide data regarding the inventory date in which it was sent, the value that I had that particular day and to whom.
Companies that have seen the advantage
Maersk and IBM made a joint venture through a blockchain technology by introducing a complete delivery system based on the blockchain network. The result? More than 100 companies came together to streamline the industry through freight transportation and commercial financing. The emphasis is on end-to-end services, from manufacturers to end users who use the pilot platform and the blockchain as a means of value transfer and inventory evaluation.
De Beers, on the other hand, uses blockchain in its entirety, as it tracks all shipments and payments using its own blockchain technology to track from the origin of its products. The idea is to take out the so-called “blood diamonds” or to trade only with those suppliers who are willing to put all the necessary information in advance and where all transactions are public.
Cloud Logistics uses a blockchain payment system to reduce the costs associated with the transfer of payments around the world. The rates in the cryptographic world are much cheaper than using classic methods, such as banks and electronic payment systems, the fact that Cloud Logistics knows this very well.
Tomcar did not exactly implement all the blockchain technology within his system, but the vehicle company pays its suppliers, in bitcoin. However, it would be worth mentioning that only 2% accept this payment method so far.
The Ico Winnesota offers to create a solution for the refrigeration of transport to avoid economic losses.
There is still much to be done, but the fact that companies are already trusting this technology is a big step.
Writer by birth, curious by profession … I learn a little more every day from the cryptocurrency.