Blockchains and Supply Chains
In 2009, the creation of the bitcoin currency caused the world to rethink how business transactions are conducted. By using a distributed database called blockchain, Bitcoin can track the flow of the currency and prevent double spending. (Magazine) The distributed nature of the blockchain causes the database to be dispersed across all of the nodes, or personal computers that are a part of the chain. A benefit of this information structure is that by gaining access to one computer, someone can not gain control of the entire database. Relating to a topic we discussed in class, a blockchain consists of blocks that represent transactions. These blocks possess a time-stamp as well as a link to the previous block in the chain and the process is repeated each time a transaction occurs. (Magazine) In relation to another topic we discussed in class, an entire blockchain constructs an operational database.
The implementation of blockchain into supply chains is one of the numerous innovative applications of this technology. To combat a lack of transparency and accountability within complex supply chains, many companies have begun using blockchain when transferring activity logs that track the flow of goods and services. (Casey) With this technology, companies are able to track every single worker who has come in contact with the product. Walmart has partnered with IBM and Tsinghua University to track their supply of pork from china to ensure that their product meets their standards. In doing so, they are making strides to avoid disasters such as Chipotle’s E. Coli outbreak that left over 50 customers ill and caused their stock price to plummet 42%. (Casey) In conclusion, blockchain utilizes the full potential of the internet’s capabilities to improve various business processes.
Works Cited
Casey, Michael J., and Pindar Wong. “Global Supply Chains Are About to Get Better, Thanks to Blockchain.” (2017): Harvard Business Review. Web. 10 Apr. 2017.
Magazine, Bitcoin. “What Is a Blockchain?” Bitcoin Magazine. BTCmedia, n.d. Web. 18 Apr. 2017.