Thursday, 4th November 2021

What is blockchain technology?

One of the biggest talking points with regards to technology over the last couple years has been cryptocurrency. Cryptocurrency is relatively new; Bitcoin was the first ever cryptocurrency, having been created in 2009. Cryptocurrencies, however, are just a product of blockchain technology, which has been around since the early 1990s.

What is it?

Blockchain technology is one of the most secure forms of distributing digital assets – a decentralised, distributed ledger technology.

The process is simple. Blockchain technology uses a peer-to-peer computer system to verify and record transactions. Each individual transaction is recorded on two separate computers, making the process of fabricating a transaction nearly impossible. The concept of storing transaction information on more than one computer and relying on that process to function is what gives ‘blockchain’ its name.

What commercial benefits can this technology provide?

Blockchain allows for end-to-end traceability across supply chains for physical assets by ‘digitising’ them. Any supply chain or logistics-based company can benefit from this type of technology. Blockchain technology can bring trust and transparency to supply chains that are multi-layered, complicated, and vulnerable to costs related to loss or damage of physical assets being handled by many different people across a great distance.

Here is a contextual example.

You are the owner of a new car manufacturing company. Your cars are complex and require each part to be manufactured, transported, and delivered to your manufacturing plant in high quality and on time. You are getting increasingly concerned that you are unable to successfully track some of your parts during the journey, which originate in a country the other side of the world. You give these assets a ‘digital’ counterpart, ie, a code, which can then be scanned at each checkpoint of the parts’ journey. Blockchain technology can allow you to track each step these parts take across the globe, including quality status, from the country of origin right to your plant. This, essentially, gives you far more control over outsourced contract manufacturing.

If you would like to begin implementing blockchain technology into your daily business operations, talk to us!