As we know that blockchain has become one of the safest ways to keep ledger encrypted in the crypto industry. And this technology is safest than the banking model. Therefore, our supply chain industry is also adopting it for replacing old slow manual process, strengthening traceability, and reducing supply chain IT transaction cost. In this blog, we are talking about how blockchain is technology is used in the supply chain industry.
Blockchain was originally introduced in 1982 by cryptographer David chum in his dissertation “Computer system established, maintain by the mutually suspicious group”. Further work of cryptography was described by Stuart Haber and W. Scott Stornett in 1992. They wanted to implement a system within timestamps that could not be tampered with.
And after that by using the Same concept as base the first blockchain was conceptualized by a person Known a Satoshi Nakamoto in 2009. He significantly improved the system using a hashcash like a method timestamp block without requiring them to be signed by a trusted party and the design was implemented as a core component of cryptocurrency, where it serves as a public ledger for all transactions on the network.
Blockchain is now a decentralized distributed and oftentimes public ledger consisting of records and that is called blocks and it is used to record transactions. And each block is secured with a hash number we can consider hash number as a human fingerprint because each person has a unique fingerprint likewise each block is secure with a unique hash number that cannot be tempered. And if someone will try to change any information in the block the hash number change automatically, and it became invalid and make other blocks invalid too.
Blockchain in Supply chain
Blockchain has become one of the safest ways for transactions in the crypto industry due to its encryption technology. Our supply chain industry is also adopting it for replacing slow manual process, strengthening traceability and reducing supply chain IT transaction cost. There are many things in the supply chain, which is significantly improving with the help of blockchain, for example, A manufacture purchased raw material then converts it into a product and after that, he sends it to wholesaler, retailer, and end-users. Hereby using Blockchain technology every transaction in this process can be recorded at one of the blocks and numerous copies in the entire ledger and these copies are distributed to end no. of users which make it highly available and transparent and of course secure, because in the supply chain each block is secure with a unique hash number which cannot be tempered.
There have been several ways to deploy blockchain in the supply chain like IBM and Diamond Tracing company has been already involved in tracking the origins of gemstones and other precious commodities to ensure that they were ethically mined.
Blockchain has been used for food supply. It allows consumers and retailers to track the provenance of meat and other food items from origin to stores and restaurants. Apart from this, The Italian furniture company Savio Firmino launched the world’s first production using blockchain technology in interior design and furniture.
So, as of now, there are considerable ways to improve the supply chain industry with the help of blockchain technology like end-to-end traceability, speed of product delivery, coordination, and financing. It will bring more transparency in supply chain. There will be improvement in visibility and compliance over outsourced contract manufacturing and reduce paperwork and administrative costs.