As production costs continue to increase and supply chains continue to grow and change, there is an immediate need for a future-proof technology to help the industry move in the right direction. Visit here to know the security for digital assets to start bitcoin trading with efficiency, technology, and zero fees. When Satoshi introduced Bitcoin’s blockchain into the financial system in 2008, it completely changed how businesses approach their supply chain relationships.
Bitcoin and blockchain have become tools for shaping and managing global supply chains by providing secure facilitated transactions using pre-approved trusted parties. The below-listed portion will provide a detailed guide about how blockchain and bitcoin are used today for social good, such as humanitarian relief efforts.
Blockchain as a global supply chain:
Blockchain is a technology that has taken the world by storm. It is expected to have a similar effect on global supply chains as on financial transactions and social media. The best way to understand blockchains is to understand how it works in practice. Global supply chains are complicated, and blockchain technology can help in these areas:
1) International payments and remittances:
International payments and remittances can be expensive, time-consuming, and bureaucratic. Moreover, in all the years of industrial development, and the globalization of trade, there are still many international payments that are either not made through the banking system or take such a lot of time that they become uncompetitive.
The current international payment system is hard to justify considering how much cheaper and easier it would be to make these payments using blockchain technology. For example, when you want to send money across state borders in a country like India, businesses usually need to pay fees that range from 4 percent to 6 percent. Bitcoin and Blockchain technology will help us significantly reduce these high fees and improve speeds.
2) Product authentication, traceability, and ownership of goods:
When you buy a product, it comes with a complex list of information, including its serial number, manufacturer, and expiry date. However, there are very few ways that you can track the history of your product or confirm its authenticity of these products. Blockchain can create a single registry that is digitally accessible, which allows you to follow your purchases from origin to destination.
3) Supply chains visibility:
Supply Chains in today’s digital world are becoming more and more complicated. They are not only very time-consuming but also prone to errors because they do not have an easy way to be monitored and verified. With Blockchain technology, you can monitor and track the entire supply chain with RFID (Radio-frequency identification) tags, scanners, sensors, and camera-based technologies. Having a blockchain-enabled supply chain will give you better security and transparency in your supply chains, which includes knowing where your products are at any given time and verifying their authenticity.
4) Reduced fraud:
Blockchain technology also provides a haven for all critical information that cannot be faked. Furthermore, fraudulent or fake items do not stand a chance against this new level of security because each item is linked to its source or manufacturer through the blockchain system.
5) Anti-counterfeit protection for intellectual property:
When a product has been made, its information is stored in the blockchain system and cannot be altered or erased. Therefore, this new technology has become a valuable tool for protecting intellectual property rights. In addition, due to its simplicity, efficiency, and transparency, businesses are integrating blockchain and bitcoin in their supply chains.
6)Tracking the movement of pharmaceuticals/medical devices from manufacturer to patient:
Healthcare businesses are also adopting blockchain technology to streamline the exchange of data across all levels of the supply chain, from manufacturer to patient. As a result, it will drastically reduce incidents of product tampering, counterfeit items, and theft.
7) Digital identity for physical goods:
Using blockchain, we can identify objects through digital identity and find out the details of their previous owners if they were involved in crime or had any suspicious activities.
It will help law enforcement agencies in their work. Bitcoin and blockchain technology make it easier for companies to accept payments from overseas customers by eliminating high transaction fees and offering high security.
Bitcoin- A leading entity in the supply chains:
Blockchain is just one of the two components in the supply chain. Another critical component is the bitcoin (BTC). After all, the bitcoin brings together all these other parts to work as a whole. Bitcoin (BTC) is an electronic currency that can make fast and secure financial transactions over the Internet.
Bitcoin is an open-source protocol based on cryptography and a peer-to-peer networking system that is fully decentralized without any third party involved; in short, bitcoin is the one that brings an impartial decentralized ecosystem to the supply chains, and blockchain alone cannot transform this system.
Also published on Medium.