The trends in blockchain in supply chain and logistics circles are becoming synonymous with transparency and visibility, and the trends in blockchain and supply chain and logistics will revolutionize how companies maintain compliance and expand. As noted by Max Heine of CCJ Digital, blockchains distributable ledger can give all parties access to information to ensure a shipment’s validity, accuracy, and timeliness. With the growth in the global supply chain expected to continue, shippers need to understand the trends in blockchain for 2019 and how they will shape the future of the industry.
Transparency Concerns Will Be the Primary Force in the Use of New Systems and Technology in 2019
Transparency will be a significant force for all new systems and processes implemented in 2019. The use of Big Data will give companies the ability to look beyond the superficial needs of a company, but the use of blockchain could help position shippers to understand better and track their actions, improvements, and effects. In addition, blockchain will enhance global trade compliance. According to Sedat Saka via Forbes, demand for more IT services will include the use of big data and blockchain technology.
For example, blockchain-based contracts could be created to ensure all parties understand their obligations, which will have a significant implication for eliminating the confusion that may arise when operating among other cultures. In a sense, blockchain will become the new Incoterm.
Payment Processing Will Grow Easier
An integral part of the trends in blockchain and supply chain and logistics capabilities focuses on needs applications and payment processing. Blockchain was initially developed for Bitcoin, so it has a natural implication for payment processing applications. Blockchain can help validate payment details, ensure assets are represented accurately, and automatically notify other parties in the supply chain of payment completion status.
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Agnostic Blockchains Will Become the Standard for the Technology in Use in Logistics and Supply Chain Circles
As explained by Kevin Curran of The Street, the value of using blockchain is only as good as its weakest link, and the weakest link in today’s blockchain derives from their semi-private nature. In other words, a blockchain gives all parties within the network. The ability to access and record information, but the average global shipment may involve more than 200 touch points between its origin and destination. Unfortunately, this means all 200 companies would need to use the same blockchain-based platforms to have the same level of transparency and access. The capability to share information and take advantage of the blockchain is rooted in agnostic blockchains.
Agnostic blockchains platforms allow for the integration with existing, says, keeping certain parts of the chain isolated, while still presenting the most pertinent information to the partners of the blockchain. Unfortunately, private blockchains, such as those used by IBM and Maersk, are limited only to the companies using him, so any part of the transaction that occurs outside of that specific company cannot be logged within the blockchain. With interest in trends in blockchain in supply chain and logistics applications growing, agnostic blockchains will become a standard for the technology
Blockchain Will Leverage IoT-Based Technologies
According to Steve Banker via Forbes, blockchain-based systems can leverage IoT-based technologies to automate the data capture and entering the process. This would effectively eliminate the concerns over errors during manual entry of data into blockchain. Since blockchains cannot be edited after entry, automation will go a long way in ensuring accuracy and timeliness of the use of blockchain-based technology.
Trends in Blockchain in Supply Chain and Logistics In a Nutshell
The financial gains of the trends of blockchain and supply chain and logistics will empower shippers with an incorruptible resource that will restore confidence in supply chain function. As the capabilities of blockchain expand, companies will grow more connected, and contract adherence will be standard operations. Shippers should take the time to understand these trends to put the power of blockchain to work in their operations.