Blockchain technology is best known in the financial sector: its origins are entwined with those cryptocurrencies that rely on blockchain transparency and unparalleled security to accelerate their success. Essentially, through a decentralized distributed digital ledger, the blockchain can record any valuable transaction in the entire computer system, so that no record can be stolen without the knowledge of the entire computer system. Change soundly.

In the financial field, blockchain is explored and actively used to conduct financial transactions and even manage contracts. For supply chains, the benefits extend beyond simply keeping accurate records: Blockchain radically reduces excessive time spent on paperwork and authorizations. At present, most product or material delivery delays are due to these two points. But on the blockchain, there is no need to spend time verifying previous records. Only a digital signature is needed to ensure the accuracy and authenticity of digital paper records.

Verify authenticity

Take the diamond trade as an example. Currently, consumers must rely on certificates to verify the authenticity of gemstones. A piece of paper can be easily changed, and many diamond owners, when approached for appraisal with the intention of selling, find that their flawless diamond is worth little more than a glass or smaller diamond.

Using blockchain, diamonds can be uniquely barcoded as raw stones when they are just mined from the market, while maintaining the integrity of their information, changes made and handling records. circulate throughout the supply chain. Throughout the supply chain, authenticity can be verified and the absence of unauthorized alterations, so the end buyer is able to trace the origin of the diamond (and indeed any other material used to make the final product) and its entire circulation.

Similarly, with blockchain, the origin, service and ownership history of used cars can be traced, thereby reducing service fraud (such as where odometers are recalibrated) and the number of stolen vehicles in circulation, and I also hope that these industries will be completely terminated.

Transparency and Security

Security and transparency are not terms that usually go hand in hand, but on blockchain, they do. As mentioned above, blockchain security does not allow any form of unauthorized changes and ensures data authenticity. By storing "blocks" of information that are identical and require collective approval on its network, blockchain cannot be controlled by any single entity and has no single point of failure, making it the most secure platform to date.

Blockchain can provide transparency, however, it is programmed in a way that only allows authorized entities to access information relevant to their specific interests. For example, a buyer may be able to view transaction history but will be denied access to sensitive or personal information such as address.

From a compliance perspective, this helps ensure that all parties comply with laws, such as the EU’s General Data Protection Regulation (GDPR) and South Africa’s Protection of Personal Information (PoPI), while still being able to* **Share or access information relevant to their own parts of the supply chain.

Blockchain technology has many application examples, and supply chain is one of them. However, due to the complexity and number of parties involved in the supply chain, blockchain is considered to be the perfect solution to all challenges to date, including security, latency and authenticity.