Table of Contents
The Complexities of Global Supply Chains
Supply chains across the globe have grown in complexity over the years, making it increasingly challenging to track the origin of raw materials. A striking example of this is the iPhone, a product that you could be using right now. Components of this device come from suppliers spread across 43 different countries, which span six different continents.
As these parts undergo various manufacturing processes involving numerous transactions and interactions, the real challenge lies in tracing the source of these raw materials. The difficulty intensifies given that even in the 21st century, substantial parts of our supply chains still rely heavily on paper-based records. This means that as products are shipped around the world, the paper trail continues to grow.
Overcoming the Inefficiencies of Paper-Based Systems
The use of paper in tracking supply chains results in immense inefficiencies. For instance, imagine shipping a container from Mombasa to Rotterdam. You would end up with a stack of papers nearly 25 centimeters high. This gives you an idea of how much paperwork is involved in merely tracking a single shipping container.
However, all is not bleak. New digital technologies are emerging that, if harnessed properly, could help overcome these issues. Chief among these is blockchain, which has been floated as a solution to overlay security and efficiency on top of complexities of global supply chains.
Blockchain Technology To The Rescue
Brands are gradually realizing the potential of blockchain. They see a powerful refashioned supply chain, where consumers willingly pay a premium for transparency. But what is this blockchain? It’s a decentralized digital registry or ledger where every participant within a network holds an exact replica.
Companies have long employed digital databases to keep track of transactions. However, blockchain offers an additional layer of security against tampering due to the multiplicity of data copies. With every new piece of input, a time-stamped data block is created and encrypted. This block is then distributed across all devices within the network, and it can be accessed via an app, a QR code, or even a text message.
On The Ground Applications of Blockchain
Several industries, including big retailers, fashion houses, and shipping companies have already started adopting blockchain. For instance, take the case of BanQu, a company enabling over two million farmers and informal waste pickers across 51 countries through its blockchain platform.
With this technology, they can capture and consolidate crucial details of their transactions and validate the quality of their crops automatically. This acts as a secure evidence of sales that they can use to borrow money at low interest rates to expand their businesses.
The Smart Contract Aspect
Another fascinating aspect of blockchain is the concept of ‘smart contracts’, program-based contracts that execute when certain predefined conditions are met. They can be used to make any type of transaction, which includes safeguarding smallholder producers by automatically determining fair prices for their crops.
Realizing The Limitations Of Blockchain
Though blockchain has the potential to increase transparency and reduce exploitation, it is not without its limitations. The most significant is the fact that blockchain is only as good as the information that feeds it. It requires robust external verification systems to ensure that the data on it is reliable and of good quality.
The Momentum of Consumer Demand
Consumer trust can significantly influence brands’ inclination towards blockchain technology. A study by IBM revealed that over 70% of people who find traceability important are willing to pay a premium to companies that offer it. This consumer-driven demand for transparency is one of the main driving forces behind blockchain adoption.
Conclusion
To sum up, although the transition may be slow, the use of blockchain in supply chains could lead to lower costs and increased transparency. This could fundamentally reshape industries and have a profound impact upstream. As the capabilities of blockchain technology continue to emerge, it could revolutionize our understanding of supply chains, bring transparency and fairness to producers, and foster consumer trust.
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Blockchain technology will escalate global warming. The energy consumption and the heat generation is an extremely imperative issue that needs to be addressed.
Blockchain doesn't care if you are corrupted, corruptible, or un-trustworthy… it'll solve many of the worlds issues because it helps fix a major issue that plagues humanity… the severe lack of accountability.
Incredible! This content is a true masterpiece. I recently read a similar book, and it was an absolute gem. "The Hidden Empire: Inside the Private Worlds of Elite CEOs" by Adam Skylight
It could no no,it allready took over and is going to take all finance is the the new county hall on a computer (Energy Code) Wake up🤘
OriginTrail (TRAC)
It is essential to analyze and understand the factors that affect the cost of protection. By carefully assessing the risk exposure and considering alternative methods, it may be possible to optimize costs while maintaining an acceptable level of protection.
"Garbage in, Garbage out" Haven't heard that in decades.
Drivers License
Passport
Voting
Ownership
Blockchain technology is very effective for every industry
The Fed will acknowledge that they were late to the game, that inflation has been more persistent than they were expecting. So they probably should have tightened sooner, Some analysts believe that the larger banks are resilient and are more worried about the smaller and mid-sized banks. Well, I'm still at a crossroads deciding if to liquidate my $138k stock portfolio, what’s the best way to take advantage of this bear market?
Doubt
wow at this bloomberg asthetics.
Just to say anyone along that chain or a government itself can't manipulate that information and redistribute that altered information in nanoseconds
I really loved it. hanks a lot.
Dangerous.
Blockchain is the ultimate solution for most of the record keeping,, tracking and transparency throughout…
VeChain?
We hope that cannot be controlled by the government and that we will actually be slaves.
Blockchain Is not Only the Future, It is Now!
The entire world's GDP is 85 Trillion and supply chains alone are 50 Trillion?
Just an utopian idea.
Question is how will AI treat block chain?.
Nonsense article, all the terms are distorted and bent towards somebody's block brain scheme.
I dont see how blockchain is improving much here. It sounds like the supply chain industry needs to go digital to remove the paperwork. If you put incorrect information on a blockchain, all that blockchain can do it verify that that information exists. Blockchain isn't going to magically be able to verify that the person who input the data wasn't lying. As 'motivation 2 invest' said, we need to look at problems objectively rather than start looking for nails to hit with them.
Someone, please explain why we couldn't use google sheets or another cloud-based tool to track supply chains.
What happens if the power goes out?
If this new system is so great then why is it that here in Australia we have gone backwards to same excuse for why we have to pay more for tracking and new old tax for us to purchase items from countries in the northern hemisphere it’s just like in the beginning of when we could purchase items on the internet.
The excuse was it costs so much more to post items to Australia and New Zealand and the extra cost was past on to the person purchasing the items.
When someone from the northern hemisphere bought something that Australia had built design or made we couldn’t have the option to pass on extra costs to the person or company buying the items and we would have to pay taxes shipping and export costs and this didn’t change until the 2015 onwards.
My trading journey was a matriculation of high and low literally just like the market. You up and you down. Now I'm constantly up
I learnt that Twitter stocks will become a great boom in the coming weeks. How true is this?
We grow coffee in Zambia?👀
Song:
Synchronicity – The Flight
trust for system
do you know you can earn about 5times the money invested on cryptocurrency in less than 4 working days
"consumers willing to pay a premium for transparency" is the whole idea behind this drama. You can simply use and IPFS file system to create immutability and decentralisation can be done in much simpler terms.
I didn't get the part where they check the quality of the product the farmer gives to the middleman. Why can't the middleman just put a different number for amount or quality etc. into the device and upload it to the blockchain? The IOT Device itself then needs to be safe right
Origintrail $TRAC
< TA is all well and good but I find it truly baffling that all major crypto youtubers just look at pure TA and completely ignore the bigger narrative of why BTC is dumping and why the future outlook might not be as rosy as it seems. It's kinda irresponsible to ignore the fact that each ETF launch so far has caused a major dump at the peaks of BTC. More emphasis should be put into day tradiing as it is less affected by the unpredictable nature of the market. I have made over 11 btc from day tradng with Ray F Johnson , insights and signals in less than 2 weeks, this is one of the best medium to backup your assets incase it goes bearish
promoting blockchain as a panacea for organizational supply chain issues is as nonsensical as promoting linked lists as a solution to NHS wait times, arrays as an identity management solution or tables as cyber security solution. The technology has absolutely nothing to do with the rampant organizational corruption in the supply chain.
Such a cool video 🙂
This would also be great for nonprofits and NGOs.
More tech tracking people great idea…
Vechain is the leader in this
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I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN…I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED… CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG ?
i do not really understand the objective of the marketing of blockchain… it really sounds like an incomprehensible word salad to market an idea to benefit people that it is not intended to benefit.
Is our 1% is finally pushing for a technology that fights poverty after so many generations of indifference? A technology that allows the 99% to approach the same level of wealth that the 1% possesses?
Smells like naivete to me. The video admittedly states that we still need middlemen to verify authenticity of transaction but now we should be content that blockchain technology with so many unknowns which is also stressed to be not AI driven is going to do it better than a bank or financial institution because we all "have access" to a ledger like a poor farmer is supposed to be able decipher the ledger like child's play? Or are we supposed to be "comforted" that the government is not involved due to blockchain being… and may I ask how is that better unless we are talking about illegal transactions that are not desiring to be transparent? What if fraudulent transactions occur? Who is going to help those affected if governments are kept out? The blockchain police?
So much marketing and all seem to be avoiding the need to addressing the elephant in the room.
Can’t out cheat my taxes now
Thanks