Blockchain, Supply Chains, and Bottos‘ Role
Blockchain may have the potential to transform supply chains, yet it is limited by an ability to scale. To counter this, the Blockchain technology must first design solutions to achieve a scalable Blockchain-based supply chain.
Blockchain systems may offer advantages to supply chains by improving transparency and traceability. However, Blockchain’s perceived inability to scale effectively is often seen as the main reason of the delay of the sector’s adoption of the technology.
The Supply Chain
Our current supply chain presents several issues. Over a century ago, supply chains were relatively simple since commerce was largely local, but they have grown incredibly complex. The supply chain history has experienced many innovations such as the shift to haul freight via trucks rather than rail or the emergence of personal computers in the 1980s that led to incredible shifts in supply chain management. Given that manufacturing has been highly globalized, our supply chains present a high degree of complexity.
It’s very difficult for consumers or costumers to really know the value of products because there is an important lack of transparency in our current system. Similarly, it’s extremely difficult to go through supply chains when there is suspicion of illegal or unethical practices. They may also be extremely inefficient as vendors and suppliers try to connect the dots on who needs what, when and how.
The Blockchain
While the most known use of Blockchain is in the cryptocurrency, the reality is that it has several applications and can be used for any exchange, contracts, tracking and payment. Since each transaction is recorded on a block and stored in multiple copies that are distributed over many nodes, it set itself as highly transparent. It’s also highly secure since every block links to the one before it and after it. Blockchain can increase the transparency and efficiency of supply chains and positively impact everything concerned with it, from warehousing to delivery to payment.
The very features that are necessary for reliability and integrity in a supply chain are provided by Blockchain. It also provides consensus, and there is no dispute in the chain regarding transactions given that all the entities on the chain have the same version of the ledger. Everyone can see the chain of ownership for an asset on the Blockchain, while the records cannot be erased or tampered, which is paramount for a transparent supply chain.
For example, diamond-giant De Beers uses Blockchain technology to track stones from the point they are mined right up until they are sold to consumers. This ensures the company avoids ‘conflict’ or ‘blood diamonds’ and assures the consumers that they are buying a genuine article.
Bottos AI Ecosystem and Supply Chains
All of these efforts towards the supply chain may be in vain if not supported by cutting edge computing power, distributed storage and, of course, Blockchain. Bottos is on the right course to make it available to favor a supply chain disruption through the use of its technology and the development and deployment of IoT devices operating in its ecosystem and smartly managed by its AI.
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