Centuries ago, supply chain was simple because all commerce was local. New innovations have transformed our world, allowing us to ship goods globally. Technological advances, like the blockchain logistics initiative, have been necessary for the industry to adapt. Blockchain startups are continuing to grow, showing some promise for the broken aspects of our current supply chain.
The Value of a Dollar
When you’re buying a product, you want to know that you’re paying a fair price. With the current logistics system, there is a significant lack of transparency. Similarly, it’s difficult to investigate supply chains for unethical or illegal practices.
Blockchain is essentially a distributed digital ledger. Every transaction is recorded on a block, and multiple copies are distributed. Because of this decentralized system, the payment is extremely transparent. Additionally, the system is both efficient and scalable, improving everything from warehousing to delivery to payment. The most prominent is Bitcoin, but other cryptocurrencies are being used, as well.
The Global Marketplace
With blockchain, the transfer of funds is capable without the use of a traditional bank, making it convenient for global transactions. Various large corporations are already using the blockchain to improve global commerce in industries like electronics, pharmaceutical, food, diamonds and more.
- BHP Billiton, the world’s largest mining firm, will use blockchain to track and record data throughout the mining process. This will improve both internal efficiency and external communication.
- Ten major food retailers, including Walmart and Kroger, are using blockchain to simplify and revolutionize their supply chain.
- Australian vehicle manufacturer Tomcar pays its suppliers through bitcoin.
These are just a handful of examples that showcase the various uses of blockchain in the logistics industry. When our world’s core brands are investing in and utilizing blockchain technology, it’s a sign to the
As with any emerging technology, blockchain has its challenges. One challenge is that it’s a somewhat new development, and many businesses aren’t yet using it. Using blockchain today is essentially the equivalent of being one of the first people to own a telephone. Also, the currency volatility is an issue because you need a digital key to access your digital reserve, and there’s no way to get it back if you lose that passcode.
There are also hurdles caused by general human nature. Blockchain programming takes a certain level of software skills that need to be learned, and some people may take more time than others to adjust their mindset.
Because of these challenges, global blockchain implementation won’t happen overnight. However, the industry is definitely making the shift toward blockchain as part of everyday operations.