The lack of trust that exists in supply chain information and sharing of data continues to present problems for various links in the chain. After factoring in the extensive process companies must go through in order to access the multiple borders they ship through, trust is expected to decrease between companies and resources.
Blockchain presents a solution to this growing issue. Brigid McDermott, IBM’s vice president of Blockchain Business Development & Ecosystem, says, “Let’s put the trust into the technology so we can solve the key problems that have plagued supply chain and logistics for centuries- and maybe millennia.”
Blockchain began about 10 years ago as a secure, cost effective way to process monetary transactions. It acts as a canopy over a large network of computers, where all of the records are kept safe. The technology itself can be applied in various ways. Permission-less blockchain allows for any server to hop on, while permissioned blockchain would pertain more to companies who have already been exposed to each other and their services.
One of the many benefits of a blockchain transaction is that every user is ultimately looking at the same information. However, while the technology keeps a record of all transactions, only those parties involved in a specific transaction are permitted to view the record/details. For blockchain to continue to grow an increase in participation is key. Like any new technology in its early stages, participation and growth are the two main factors that will help blockchain prove its potential.
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