Blockchain technology often goes hand in hand with cryptocurrencies like Bitcoin and Ether. However, many still don’t realize that a blockchain implies keeping a ledger of transactions. That ledger then gets copied to other computer systems. This is what a new project called Syncfab is seeking to take advantage of .
The main reason behind this is trust and security. Still, Kevin Werbach, a well-known internet scholar, calls this a sort of a trustless trust. Even though the blockchain provides a transparent and dependable verification, it still doesn’t mean you can trust its outputs.
Due to this trust, blockchain technology connects vendors, buyers, and shippers and creates a unique digital marketplace. That way, they are participants in a supply chain that relies on trust. It also enables them to cooperate freely among themselves.
The blockchain system has many benefits for its users:
What this means is that the system allows you to execute your contract terms with more ease. Blockchain technology uses smart contracts to optimize the procurement of goods. These contracts are embedded in the system, and they take the data and authorize the release of assets.
Once users agree to the terms, the contract automatically executes them. It may include shipping authorization, payment on delivery, etc. Essentially, the computer code controls – the contracts – are cutting your work in half and dealing with the “paperwork” instead of you. Furthermore, this is a fantastic way to avoid manual verification, which you would need to implement during each step.
The blockchain record can hold a variety of information inside it. For example, it can label each product during a transaction. Once the product goes through the supply chain, the ledger copies its information automatically. That data includes the product’s origin, storage, transport, and any other information you might need. Moreover, you can even automate this process with sensors, RFID, and other technologies.
Apart from the security, the ledger also makes sure the quality of the product is just right.
It can record each process the product goes through, as well as who handles it during and after the production. That includes factory workers and even the final user.
It also means that stakeholders can actually track down the source of every problem and fix it accordingly.
In the conventional supply chain, companies have to rely on other trustworthy authorities.
However, most smaller companies can’t afford their services. Whatsmore, banks and other similar institutions often aren’t interested in small contracts.
Blockchain technology deals with this issue by decentralizing economies of scale manufacturing. The ledger opens the doors to businesses of all sizes. In addition, it also allows smaller ones to compete with other designers, buyers, and manufacturers.
Through the blockchain technology, Syncfab is leading the way to the Fourth Industrial Revolution. Furthermore, they are also laying the foundation for smart factories as well. Thus, once the revolution happens, we will have an automated supply chain, and both sides will record every step of the supply process.
The buyer asks for a quote for a new order. All manufacturers compete and try to win the bidding. They offer their services and all information regarding capacity and costs.
Once the bidding ends, the manufacturer starts as soon as the funds transfer. The best part about it is that both parties can track every stage of the production. They can see where their product is at any given moment, which provides them with a great level of flexibility – and low costs.