A blockchain is a type of database. It collects information together in groups, also known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are chained onto the previously filled block, forming a chain of data known as the “blockchain.”
UNDERSTANDING BLOCKCHAIN TECHNOLOGY
Blockchains are mainly used to store cryptocurrency transaction record, legal contracts or product inventories.
No one computer or organization can own the chain. Nodes can be any kind of electronic device that maintains copies of the blockchain and keeps the network functioning.
In a blockchain, each node has a full record of the data that has been stored on the blockchain since its inception. his way, no one node within the network can alter information held within it
new blocks are always stored linearly and chronologically. That is, they are always added to the “end” of the blockchain. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block unless the majority reached a consensus to do so.
WHY BLOCKCHAIN IN SUPPLY CHAIN?
- Replacement of slow, manual processes. Although supply chains can currently handle large, complex data sets, many of their processes, especially those in the lower supply tiers, are slow and rely entirely on paper—such as is still common in the shipping industry.
- Strengthening traceability. Increasing regulatory and consumer demand for provenance information is already driving change. Moreover, improving traceability also adds value by mitigating the high costs of quality problems.Bottom of Form
- Preservation of data. the blockchain provides a complete, trustworthy, and tamperproof audit trail of the three categories of activities in the supply chain.
Blockchain is an especially promising and revolutionary technology because it helps reduce risk, stamps out fraud and brings transparency in a saleable way for myriad uses.