Blockchain Supply Chain Training
The blockchain is a network of many distributed parties who verify transactions. This eliminates the need for central authority. All parties can interact with each other and all interactions are public and pseudo-anonymous. The information stored on blockchain is unchangeable once it is recorded.
Currently, there are not many businesses that do not see Blockchain restructuring the complete value chain. It is the most talked about technology and some early starters have already rolled out full-scale Blockchain implementations and proofs-of-concept. While its most often talked about as a currency, Bitcoin is really more accurately described as a database or ledger that tracks transactions, hosted across many nodes and cryptographically guarded against fraud.
Blockchain Use Case in Supply Chain
The concept of Blockchain was originally developed to make secure peer-to-peer transactions using cryptocurrencies. Majority of use-cases for Blockchain have been introduced in the Financial Services Industry. But with its Distributed Ledger technology and Smart Contracts, Blockchain has been considered by many other industries for reducing cost, increasing efficiency and even for creating new revenue streams. One such industry that is experimenting with Blockchain is the Shipping Industry.
Cross-Border Supply Chain is a complex process with multiple parties involved, like freight providers, security agencies, border control, logistics providers, over and above the organizations involved in transactions. A lot of risks are involved, which entails a huge amount of paperwork. Blockchain provides a solution to ease the bottlenecks and save time, completely transforming the existing ways of Cross-Border Supply Chain.
Some of the critical features of blockchain which has proven it to be beneficial include the following :
- Distributed ledger
- Database stored in chronological order
- Quick response time
How Cross-Border Supply Chain Functions?
Most of the goods in global trade are carried by the ocean shipping industry each year. There are multiple parties involved and lots of paperwork. The system is also prone to frauds and errors, and thus the products spend an excessive time in transit, raising questions on the product quality. A simple cross-border shipment of goods can go through nearly 30 people and organizations, including more than 200 different interactions and communications among them. So, the current system is complex, time-consuming and prone to error.