Supply Chain

The supply chain represents all the links involved in creating and distributing goods, from raw materials to the finished product that goes into the possession of the consumer. Currently, supply chains can span over hundreds of stages and dozens of geographical locations, which makes it very hard to trace events or investigate incidents.

 

 

 

How blockchain enhances the supply chain

As a distributed ledger that ensures both transparency and security, the blockchain is showing promise to fix the current problems of the supply chain. A simple application of the blockchain paradigm to the supply chain would be to register the transfer of goods on the ledger as transactions that would identify the parties involved, as well as the price, date, location, quality and state of the product and any other information that would be relevant to managing the supply chain.

The public availability of the ledger would make it possible to trace back every product to the very origin of the raw material used. The decentralized structure of the ledger would make it impossible for any one party to hold ownership of the ledger and manipulate the data to their own advantage. And the cryptography-based and immutable nature of the transactions would make it nearly impossible to compromise the ledger. Some experts already believe that the blockchain is unhackable.