Are you a Blockchain enthusiast? If you want to know how blockchain is revolutionizing mining supply chains, you have landed at the right page. This article illustrates what is Blockchain, and supply chain, and how Blockchain is revolutionizing the supply chain industry?
Learning Of Blog
- Overview- Blockchain and Supply Chain
- Need for Blockchain in supply chain
- How Blockchain is revolutionizing the mining industry
- The Verdict
Overview – Blockchain and Supply Chain
Before understanding the integration of Blockchain with the supply chain, it is important to consider these questions- does Blockchain technology applicable to the supply-chain world? Can it solve supply-chain problems and increase organizational profitability?
You will be able to answer these questions ones you understand what blockchain technology and supply chain management is and how Blockchain is revolutionizing it.
Blockchain is a distributed ledger technology that provides the platform for creating and distributing the records on computers linked to the networks in every part of the world. As transactions are encrypted, and there is no central authority involved, the technology maintains security and privacy.
Today, Blockchain is digitally transforming every enterprise in every industry, and the positive aspects of technology make it useful to the mining industry as well. As the current system of supply chains is outdated, it requires a significant reboot, and Blockchain is the near possible solution to deal with this problem.
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Need for Blockchain in Supply Chain
Blockchain is the backbone of the digitized supply chain as it helps the customers and businesses to track their product from the time of pickup to the time it reaches the end consumer. Blockchain is safe and also reduces fraud, errors, and tracking fees.
It was introduced for financial services, but recently other industries like consumer goods and retail are examining how to implement Blockchain.
Thus we can say that Blockchain in the supply chain.
- Ensures public trust through the share data
- Engages stakeholders
- Reduces malpractice
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How Blockchain is Revolutionizing the Mining Industry
Now, as we have the answer to the question, “does blockchain technology applicable to the supply-chain world”? Let’s figure out how Blockchain can solve supply-chain problems and increase organizational profitability.
1. Strengthening traceability
Blockchain can transform the mining industry for good. The implementation of Blockchain within the supply chain of other industries such as food production, food processing, and shipping is providing transparency and security to a great extent, which means information remains reliable.
The decentralized nature of the technology allows all set of parties (from source to consumers) within the supply chain to have transparency of all materials and products, thus providing a reliable source of information due to its immutable nature (one of the major characteristics of distributed ledger technology).
2. Blockchain Validating Workflow
Mining companies have to manage approvals of documentation and the mechanism of custody and control. Blockchain will not only improve the traceability for stock exchange reporting or in inventory management of the resources but can be used to validate the workflow of activities and the desired outputs used in the resource calculations.
3. Smart Contracts Automating Tasks
Although supply chains are currently handling complex data sets, still many of their processes, especially those in the lower supply tiers, are slow and rely entirely on paper.
With the help of smart contracts, which is a computer program, that is stored in a blockchain that automatically moves digital assets between the parties when conditions are met. This leads to greater efficiency in the supply chain domain as parties will receive payments upon the receipt of goods.
4. Keep the Supply Chain Records Intact
As we know, any data that is put in the Blockchain cannot be tampered with, and this is valuable in the supply chain domain. Without the Blockchain, it will be possible to tamper the financial records or to impose extra charges and payments. To maintain immutability, blockchain technology makes use of cryptographic hash functions to ensure that all the records in the chain are honest and free from corruption, thus maintaining the integrity of privacy and security.
From the above discussion, we can conclude that Blockchain has the potential to enhance the supply chain as every operation that will ever take place in your supply chain will be recorded in the Blockchain for everyone to see, maintaining decentralization, transparency, and immutability. Not only this, but the technology also helps in reducing human errors, time delays, and additional costs.
Thus we can say that the utilization of Blockchain also opens up the doors to future innovation. In the near future, from exploration and resources to the supply of metals to industrial and retail customers, the impact of Blockchain will have a notable effect on all areas of mining.
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