In our international economy, the supply chains that carry products and services from producers to consumers present an increasingly complex web of transactions. From vehicles and electronic devices to food and clothing, most of the goods we use have passed through several countries and a multitude of providers before they reach consumers.
While globalization certainly has many benefits, this modern reality is also fraught with a myriad of problems. Not only are consumers unaware of the source of the majority of the products they use, but the very companies selling them may not know the complete details of the processes that brought the goods from creation to the retail marketplace. This lack of transparency can bring about catastrophic results, including mishandling and fraudulent behavior, which proves to be virtually impossible to prevent or accurately identify once issues are identified.
So, what’s the solution to this growing problem?
Simply put, the answer is blockchain. As illustrated in DataArt’s recent proof-of-concept project, Porsche Blockchain Services Ecosystem (Porsche BSE), the entire chain of vehicle goods and services providers can be effectively managed with blockchain to enable complete transparency.
From manufacturing to insurance, repairs, and recalls, blockchain helps tackle the complex web of data and puts it all into one database, which can be utilized by all relevant parties to retain the accuracy of information at all times.
As we all know, data is increasingly valuable in every industry. With Porsche BSE, every component of the supply chain stands to benefit from transparency and shared information. And consumers also reap the rewards of this new style of data management, as uncertainties and inaccuracies are removed from the supply chain of the goods and services they purchase.
Blockchain guarantees that all parties have access to an identical copy of the ledger. When a blockchain transaction occurs, its validity is verified by other computers on the network before it’s added to the growing database. Everyone on the network can view all transactions that have occurred, and any attempt to incorrectly modify blockchain data will be disregarded by the system if it doesn’t properly align with existing information.
[bctt tweet=”The decentralized, transparent, and secure nature of blockchain makes it an ideal solution for global supply chains.“]
The decentralized, transparent, and secure nature of blockchain makes it an ideal solution for global supply chains. Regardless of industry, transparency is an essential component of effectively managing our global economy and marketplace. By utilizing blockchain, we can ensure accuracy and transparency across all transactions, leading to a safer and more efficient process for delivering goods and services to consumers.
Written by Igor Ilunin, Head of IoT at DataArt.