Recently we learned that a major steel company falsified inspection certificates that detailed the quality of aluminum and copper it sold. This scandal is now reverberating through the global supply chain.
Hundreds of major auto, aircraft and train manufacturers worldwide have long relied on this company to provide raw materials for their products. These companies are now trying to determine if substandard materials were used in their products and whether they present a safety hazard. It’s a huge task, because these multinationals source from many different suppliers and producers.
All I could think about when I read about this scandal is how blockchain, a distributed ledger technology, could really help here.
Blockchain technology can take a manual process, such as those inspection certificates, and reduce the time and cost and increase the trust around the process.
How blockchain can help
First, blockchain could ensure that the original inspection certificates are not false and enable approval through consensus. And, if a problem did develop, blockchain could ensure that the provenance of the materials used by the auto, aircraft and train manufacturers is known.
Blockchain could also provide a “birth to death” view of the aluminum, copper or any other material in the supply chain, which would make that task of finding where those substandard products are much easier.
So, whether it’s tracing aluminum, copper or anything else, blockchain can help.
It shows up in unexpected places
Blockchain has even been used for transparency and sustainability in the fashion industry — what fabric or yarn was used in my new alpaca sweater, who did the knitting, where was it designed. And one of the main advantages of blockchain is the ability it gives companies to react quickly to safety scares. Under its old system, a major retailer discovered that it took days to trace a package of tainted mangoes all the way back to the farm. With IBM Blockchain, it was possible in seconds.
Calls for interoperability began almost as soon as the second blockchain framework was built. Today there are permissioned blockchains (like The Linux Foundation’s Hyperledger Fabric) which are preferred for many enterprises solutions, public blockchains for cryptocurrencies, and emerging blockchain identity frameworks that hold great promise for streamlining transactions in nearly every industry. In the world […]
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