At the time of its inception, the supply chain was a groundbreaking concept. It would enhance the control and visibility of products and goods as they moved from one point to another. However, the old technology and idea can no longer support the supply cycles and production of today that have become fragmented, complex and geographically isolated.

In effect, the supply chain sector is now an opaque and faulty process, which is difficult to manage. Luckily, the supply chain concern can be treated with blockchain. The blockchain is the emerging technology which has confirmed its value in bringing efficiency and transparency to some various industries.

What’s the Issue with the Supply Chain?

The supply chain demonstrates all the connections involved in generating and distributing products. It starts from raw materials to the finished products which go into the possession of the end-consumer. Presently, supply chains can extend more than hundreds of stages and tons of geographical locations. That makes it very difficult to track events or investigate accidents.

Buyers and customers have no dependable way to confirm and authenticate the real value of the services and products they purchase. That’s because of the widespread lack of transparency through supply chains. That efficiently denotes the costs we pay are an imprecise mirror of the real costs of production.

Other factors which are influenced or linked to supply chains are even though to track. For example, there is to monitor the environmental damage which goes into the production of items.

Further, accountability and investigation of illicit activities linked with the supply chain are complicated. It accounts for problems like forced labor, counterfeiting, poor conditions in factors, criminal groups, revenues being utilized in war crimes and more.

How Blockchain Tech Strengthens the Supply Chain?

As a distributed ledger which guarantees both security and transparency, the blockchain is demonstrating promise to resolve the existing issues of the supply chain. A basic application of the blockchain model to the supply chain would be to register the transform goods on the ledger as transactions. It would determine the parties involved and even the quality, location, date, price and state of the goods. It would include all the essentials of handling the supply chain.

Global trade ecosystem lacks a great platform for instant payments, cross-border smart contracts, and mitigation of counterparty risks, as well as the provision of credit collaterals through digital assets. XDC protocol of XinFin and the Tradefinex.org market has rolled out minimum viable product, which has achieved more than 10+ pilot projects effectively.

The Future of the Supply Chain Sector

The blockchain has the power to revolutionize the supply chain. It also can interrupt the way we generate, market, buy and consume our goods. The additional security, traceability, transparency to the supply chain could go a long way toward making the economies more reliable and safer. It can be achieved by promoting honesty and trust and avoiding the implementation of uncertain practices.