Arckadl Use Case: How Blockchain Works in Supply Chain

Today’s supply chains are more complex than ever before, with links and information existing between parties that are geographically dispersed worldwide. The resulting complexity and lack of transparency into a supply chain’s inner workings have resulted in many looking to blockchain as the potential solution to transform the logistics industry. This industry is also believed to benefit from growing trends which suggest responsible sourcing and better visibility into trusted data are two trends consumers and supply chain participants value.

Even with pilots in place, many still wonder just how far off the widespread adoption of blockchain in supply chain is since it seems to be only the large enterprises that have embraced this new technology. Our belief? It is only the availability of the technology in a cloud-based solution like Arckadl, that is holding blockchain back from supply chain use cases. Therefore, a solution may be right around the corner.

How Blockchain Can Help Supply Chains

This is due to the steps that make up each transaction. In layman’s terms this steps can be broken down into:

  • Two parties initiate a transaction
  • An encryption code is assigned
  • Transaction is verified
  • A block is created
  • A new block is added to the blockchain, linking it to the block before and the block after
  • Ledger is updated

Once the ledger has been updated, the blockchain contents are stored on every device in the chain and are managed without a central authority. With one single source of truth for all entities within the blockchain, businesses gain a 360 degree view of their entire supply chain with complete trust that no changes can be made to information saved onto the block.

Since data is involved in virtually every aspect of a business, applications in the supply chain range from exchange agreements, tracking and payment opportunities. With a combination of public and private blockchains, the Arckadl platform allows all parties to access necessary information, reducing communication and transfer data errors. As a result, less time can be spent on data validation, and more time can be spent on value-added activities.

Examples of Blockchain in Supply Chain

Consider how this solution can be applied in a vastly different industry, fashion. Taking similar concepts of traceability, designer Martine Jarlgaard, has piloted the first blockchain-powered supply chain in the fashion industry to prove that garments can be tracked from production to wear by any consumer, proving that garments are produced in acceptable working conditions.

Piloting a Blockchain Solution For Your Business

What do you think? Is a cloud-based blockchain platform the solution to today’s complicated supply chains? Let us know why or why not in the comments below.

Arckadl is a global company with an enduring commitment to the foundation of all trusted ecosystems using blockchain technology.

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