A distributed ledger that can store transaction data automatically with immutability supported by encryption and authentication can be of great use in the global supply chain. The immutability feature of blockchain disables the entities of the network to tamper the stored data, but all have access to it, building trust and transparency in the network. It eliminates the middlemen concept from the network terminating rule over data.
Fast and Secure Payments
Supply chains stretched across countries face the major issue of payments. Unsecured payments and delays are common phenomena in the global supply chain. Smart contracts—a feature of blockchain—can be of great use in addressing the issue. Terms of agreement can be programmed into digital algorithms which only will get executed when a specific condition is met. As the blockchain is network is highly secured with cryptography, the payments can be carried out securely, and algorithms of the smart contract will automate the whole process. Payments delays will get eliminated, and terms of agreement stored in the ledger will be useful for the settlement process.
IoT devices are already fulfilling the demand of real-time tracking, but fingers point on validation of the data stored, assuring no tampering with it. That is where blockchain’s immutable ledgers can serve the purpose. Food and beverages, and pharmaceuticals sector strive to prove the authenticity of goods to endpoints in the supply chain. Data from IoT devices can be directly stored in the blockchain ledger and can be accessed by each entity of the network. Even if any tampering occurs or is tried the network will automatically store its data in the form of blocks.
Regulatory authorities have set up regulations that are compulsory to meet. Even if the supply chain is capable of doing so, it is hard to prove compliance. Immutability, encryption, and authentication feature together will be helpful to verify the compliance and eliminate breach of any unauthorized entity in the network. Assuring goods quality will become a lot easier in the global supply chain.
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