Blockchain Technology in Re-Creating the Worldwide Supply ChainSeptember 14, 2018
After it appeared in 2008, the technology behind the most infamous cryptocurrency of the world, Bitcoin held court on the fringes, catching attention mostly from the financial service and startup industries. Nevertheless, it has recently begun to gain a lot of attention, as corporations slowly realize it could be significant for much other stuff apart from tracking payments.
To make it simple, a blockchain is a distributed ledger, which classes transactions into blocks. Each block is attached to one before it, utilizing sophisticated math, all throughout to the initial transaction. There, entries are searchable, transparent and permanent that makes it possible for community members to see transaction histories in their completeness. Furthermore, every update constitutes a new block, included at the end of the chain.
In case you didn’t know yet, a chain is a structure which makes it complicated for anyone to change the records at a later phase. The ledger enables data to be recorded and shared between big groups of unrelated corporations, and every member should validate any updates collectively.
Up to the present time, more attention has been used in financial applications for the technology. Nevertheless, an equally promising test case depends with worldwide supply chain connections, whose variety and difficulty of interests pose the types of challenges this technology seeks to manage.
An easy application of the blockchain paradigm to the supply chain could be to record the transfer of goods on the ledger. The transactions would determine the parties involved, even the quality, location, data, price, state of the product and any other details which would be essential to handle the supply chain. The immutable and cryptography-based nature of the transactions would make it virtually impossible to compromise the ledger.
Today, a group of corporations and startups are deploying blockchain to recreate their worldwide supply chain and run their businesses more effectively.
For example, for the biggest shipping firm Maersk, the challenge isn’t tracking the accustomed rectangular shipping containers, which sail the world aboard cargo ships. In its place, the challenge is orbiting the mountains of paperwork connected with one another. A single container can need approvals and stamps from as many as thirty parties. It includes health authorities, tax officials and customers that spread across more than 200 interactions.
Last year, Maersk sought collaboration with the customs authorities, producers and freight forwarders which fill the containers. It started running its first trials of new digital shipping ledger along with such partners for shipping courses between Newark and Rotterdam. On the other hand, XinFin is a blockchain technology that can benefit the supply chain sector.
XDC blockchain is built upon the consortium blockchain and has both private and public networks within it. Therefore, the access rights and nodes are categorized as per transactional visibility. The protocol can be incorporated with any industrial application, such as logistics, financing, and of course supply chain. It will serve to create solutions based on the basics of smart contracts and blockchain.