Blockchain Will Be the Main Trend Transforming Supply Chain in 2019

Gartner latest forecast is that AI, IoT, digital mapping and blockchain are some of the trends transforming supply chains.

Gartner latest forecast is that AI, IoT, digital mapping and blockchain are some of the trends transforming supply chains.

Supply chains are becoming increasingly globalized and more complex. Raw materials and products travel across many geographical locations and pass through multiple suppliers, manufacturers, distributors, carriers and service providers. Often, the supply chain is unaware of how many trading partners are really involved. In theory, organizations should know all parties in their supply chain network within the broader business ecosystem and trust them. But this is far from today’s reality. Blockchain technology could be an answer to address this problem across three areas: counterfeiting, traceability and efficiency play.

A blockchain is a distributed ledger technique, a cryptographic signature shared by all participants in the network, and a chronologically extended list of irrevocable transaction records. The blockchain allows companies to track transactions and work with untrusted parties without the need for a central party ( a bank). This has greatly reduced business friction, and applications have started in finance, but have expanded to include government, healthcare, manufacturing, and supply chains. Blockchain can reduce costs, reduce transaction settlement time and improve cash flow.

Blockchain Will Be the Main Trend Transforming Supply Chain in 2019
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From the basic cycle of the Gartner technology cycle curve, blockchain technology began to ushered in a bright period of steady development in 2019. The National Development and Reform Commission in China also makes blockchain information services within the scope of the state into the 2019 encouragement. The blockchain is an indispensable part of regulatory technology, such as smart contracts and intelligent regulatory reports, which will be further developed and applied to be a tool for building trust mechanisms. Local governments and technology companies are investing heavily in blockchain.

Wang Jiaping, a distributed system expert, believes that based on the Internet, the decentralization of blockchain possesses naturally the decentralization of communication. Then, based on the point-to-point network architecture, the user’s access method and access method to the network are also decentralized. The blockchain also decentralizes the user’s account system, user behavior, data flow and storage and the execution process of business logic. The execution process of business logic is the true core value of blockchain.

Although the pure blockchain model is not mature?yet, companies should begin to re-evaluate the technology. Refinitiv analysis believes that the blockchain will create 3.1T commercial value in 2030.

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