Blockchain: How it Can Help Manufacturers
Blockchain is the new technology that is helping to define and transform businesses in various niches. From the healthcare to e-commerce industries, blockchain technology is redefining how they operate, relate with clients, and enhance services. This post takes a closer look at how blockchain can be used in manufacturing.
Table of Contents
What is Blockchain?
Blockchain is a growing list of public ledger referred to as blocks that are linked using cryptography. Every block has a cryptographic hash of the preceding block and data captured in every block cannot be modified. This means that once data of a transaction is captured in a specific block, it is verifiable and permanent. Here is a demonstration of how blockchain can be used in the manufacturing niche.
Protecting Manufacturing Data
In manufacturing, the bulk of the work relies on the system data. From supplies to production details, having the right set of data ensures that the correct procedures and standards are followed. More importantly, the distributed ledger helps to protect the manufacturing data from breaches.
Because data is stored in different nodes, it is impossible for hackers or even insiders to alter it. Whether you are dealing with staff info, processing details, or other management data, blockchain eliminates the threat of loss.
Transparency in Supply Chain Systems
Perhaps the best way you can utilize blockchain in the manufacturing is in the supply chain. Because the supply chain might require operations in different states, countries, and across the globe, transparency can be difficult to track. This is where blockchain comes into play.
When you adopt blockchain, visibility in every section of the supply chain improves greatly. Blockchain helps to build smarter supply chains so that raw materials, as well as products, can be tracked more effectively. For example, if you want supplies of mining materials to your facility, it is easy to track the source and follow the shipment to delivery.
Application of Smart Contracts
Once you have manufactured products and they are ready for market, the common process is sitting down with intermediaries to craft a deal for supply. This not only consumes time, but could also result to breach of contracts. However, blockchain smart contracts are automated and can help to achieve three things:
- Remove middlemen from the supply chain system to increase efficiency.
- Reduce delivery timelines for products and services.
- Enhance trust between suppliers and buyers.
The Final Take
If you are in the manufacturing niche, blockchain is the new technology being used to enhance efficiency. The above three applications are only part of the emerging applications for blockchain in the manufacturing niche. You can explore other multiple ways to use blockchain to enhance productivity, get a competitive advantage over competitors, and increase profitability.