Ever since the dawn of Blockchain technology, it was predicted that it will be a perfect fit for finance. But with increasing demand for Blockchain and its implementations in a variety of industries. Is it still the best use case for finance?? In this article, we will discuss this while looking at some of the factors and use cases of Blockchain in other industries other than finance.
According to MIT tech review, Blockchain doesn’t promise to make anyone rich overnight or to hide a company’s financial activities from the government. It was meant to reduce the cost of companies by a decentralized approach towards accounting.
One of the industries that have been lacking the implementation of Blockchain is manufacturing industry. But one of the educative sessions between the manufacturing giant Saint-Gobain and International consultancy BlockchainDriven says otherwise. The hot topic of the session was Blockchain and its implementations in Logistics.
Blockchain invented as a new direction for finance and transaction. But it has been a great match for logistics and supply chain.
Blockchain, logistics and supply chain
We know that Blockchain is all about security and data transparency, and banks need both of these for their customer’s trust. Logistics and supply chain goes hand in hand, in the supply chain the criteria for trust is a little bit different. There are many parts involved in a supply chain from supplier to distributors and there are two types of trust in a supply chain.
First one is internal trust, where all the parts of a supply chain are responsible and trustable. Blockchain can help in tracking an order from suppliers to distributors. This will also help in fixing any issue at a particular level by checking the delay timings.
The second trust in a supply chain is customer trust. Today, customers ask for transparency, fair trade, and ethical sourcing. With Blockchain technology, small supply chains can ensure their customers of these three. On the other hand, big companies can save money by avoiding losses with increased accountability from their own parts of the supply chain.
Banks and supply chain
With increased use cases of Blockchain in logistics and supply chain, Banks are trying to redirect their attention and projects towards supply chain. Two of the big banks HSBC and ING shipment of soybeans on the Blockchain, this is their first live trade-finance transaction. Though supply chain direction, banks are experimenting with Blockchain.
Current use cases of Blockchain in logistics and supply chain
We have discussed how Blockchain has found its place in logistics and supply chain. In order to back that up, here are some big examples of companies and trust which uses Blockchain in their supply chain:
- United nation has been using Blockchain technology in more than 16 agencies to give donation and food by utilizing eye scanning. This is coordinated and tracked on Blockchain technology.
- According to Bloomberg, a financial software company. Walmart has adopted Blockchain to trace the transaction from farms to customers. This helps them to reduce any food spoilage and disease outbreaks.
- Another big example would be of Maersk, which utilizes Blockchain to track its cargo that results in reduced time spent in transportation.
These are some of the big examples in the supply chain where Blockchain is implemented successfully. There are other small use cases like fair food trade, diamonds, FedEx packages, vehicle part, pharmaceutical, etc. where Blockchain has successfully fitted in.
From all this data we can conclude that Blockchain was invented for finance and banking but looking at the increasing use cases in logistics and supply chain. It is not bound only to finance and it has potential to find its place in other domain also. As for small companies and organization Blockchain can be a big boon as long as they adopt it and reap its early benefits. As we have already seen that first use cases of blockchain in logistics and supply chain were most beneficial.
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