Blockchain technology has started reaching high in the market and also has a huge impact on the manufacturing industry. In the current days, the world highly gains attention towards terms like cryptocurrency, bitcoin, Ethereum token, and blockchain technology. The reason is nothing that most people are getting more benefits from those technologies, especially blockchain.
When it comes to blockchain technology, it has evolved a lot in the market and has brought more benefits. In this article, I am going to cover blockchain technology, its evolution, and how blockchain technology helps in the manufacturing industry.
Lets we start a discussion with blockchain and how it has an impact on different industries.
What is Blockchain Technology?
Initially, Blockchain is just one of the technology that supported all cryptocurrencies such as bitcoin but the experts can see that it have a larger scope in the future than just meets the needs of bitcoin. On further analysis, we found that it can bring enormous changes in the internet networks itself. Consistently, technology has evolved more and a type of blockchain has grown a lot.
So, from today, blockchain is widely being used as a distributed ledger technology. This technology has created a chain of blockchains where each of the blocks contains information as well as the data stored together and verified. These blocks are further validated and attached to the string of transactions and information in the previous blocks.
In simple terms, let’s compare it with Google Docs. As you know, multiple users can simultaneously use and can edit a single document on Google Docs. Likewise, even with blockchain technology, you have a distributed ledger. There is a difference here, unlike in Google Docs, you can’t change the previous data. You can only add to the ledger.
One of the features of blockchain technology is blockchain keeps all data records which is referred to as a “ledger”. All the data which is exchanged is a “transaction”. Once the transaction is verified, it is added to the ledger as a “block”. To verify the transactions, the blockchain uses a distributed system. ie. a Peer-to-peer network (p2p network). Once the transaction is completed, the data is verified and added to the blockchain, it can’t be changed anymore.
After that, demand for blockchain has gradually increased a lot and is also being noticed in other industries. In short, blockchain can create revolution almost in all the industry. But, the most likely ones that can have large benefits from it include:
- Banking and financial services
- Real estate
- Manufacturing Industry
Out of the above-mentioned industries, the manufacturing industry has become more inclined towards blockchain technology. Let us get into how blockchain technology can have an impact on the manufacturing industry.
Role of blockchain in the manufacturing industry:
When we talk about modern ways of manufacturing industry, the supply chain can work across many organizations, as well as many countries. This can make the system more difficult in the way of finding solutions for increasing efficiency and chasing individual events.
Most of the time, the company information in the manufacturing industry flows through the supply chain. They have a uniform way of storing and exchanging data. When it comes to blockchain, it can make smarter as well as secure supply whereas you can track the journey of your products within the real-time visibility.
For example, if you are looking for material delivery, you can track the materials you have ordered on the website and when they will arrive, who receives them when they transport the material to the next stage, and so on. Everything is recorded as blocks in the blockchain. So, you have seen minimalistic details of the supply chain process and there is no chance of any kind of manipulation.
There are many benefits that the manufacturing industry can get while using blockchain technology. If you are one among those who are experimenting with the blockchain, you must not miss the opportunity to read the below-mentioned five benefits are currently work in the real scenario.
1. Amplified inventory management
Blockchain offers holistic and permanent data of every single transaction detail that takes place in your supply chain process. Moreover, it allows you to connect to each party in the value chain – be it suppliers, production sites, or distribution centers. The records which are stored are easily accessible by those who are connected to the network. As everyone in the networks has a copy of the information, there is no confusion happening in the supply-chain process. This, in turn, becomes the intensified inventory management.
2. Upgraded data security
Information like Invoices and contract details that are exchanged in any supply chain process is highly confidential. Sharing details by way of traditional methods can be a risk and it can be easily hacked by anyone. Instead of using traditional methods, blockchain keeps the information more secure with the best cryptography techniques.
So, if you are looking to build blockchain networks for your manufacturing industry then either choose a freelance blockchain developer (or) a blockchain development company for solutions in supply management to avoid cyber attacks
3. Better traceability and transparency
Blockchain Technology in the supply chain can provide the data of all information related to your transaction. For instance, how the products are made, from where they start shipping how will manage data, and much more. However, if the data is permanent and can be easily shared with your supply-chain network, it provides you a detailed tracing and tracking abilities.
4. Automatic Payment Process to Suppliers
Blockchain technology has the facility to transfer funds to any part of the world. You don’t stick to the traditional banking methods. Money transfers can be made directly between the payers and the payee. The whole payment system through blockchain is secured. It can be done quickly. You don’t want to wait for a day or even for an hour. Once all the digital secure transactions data becomes a part of blockchain agreements and if your networks agree with the terms and conditions, then the smart contract can begin the commercial process automatically.
5. Improve Customer Engagement
Blockchain is stronger than normal storage technology. Because you can analyze the data to create forecasts and predictions, which can further help you to solve the flaws in your supply-chain management. Not only this, but your analytic tools can help to boost your customer satisfaction. You can use the blockchain database to find ways to develop your delivery timeline.
Moreover, the customers can also have the ability to access the blockchain data to a certain extent. For Instance, one of the clothing brands provides customers access while showing them an approval form or a labor union sheet. Sharing data will create transparency, which ultimately results in loyalty and also creates ever-long-lasting customer relationships.
Blockchain Technology can be a Game Changer for your manufacturing industry:
A lot of new technologies are enhancing the way manufacturing industries used to work with their supply chain management and blockchain technology is one among them. As blockchain technology continues to grow, the supply chain industry is sure to look up the true forms of transparency, accountability, and efficiency.
I am writing this blog that, the manufacturing industries will adopt the blockchain technologies sooner and they will be able to benefit from a better way of running their business.
ABOUT THE AUTHOR: Tim Josh