Blockchain technology has the potential to radically transform businesses across various sectors. Many industries like healthcare, education, supply chain, retail, and many other sectors are undergoing a transformation under the Blockchain effect. In this blog I will be highlighting, how is Blockchain changing the manufacturing industry.
When it comes to some of most potential areas of application of Blockchain, then it is going to be in the area of manufacturing. You can choose any area of manufacturing, and you could find Blockchain’s application in that very field.
Whether it is suppliers, shop floor operations, procurement, strategic sourcing or anything pertaining to manufacturing, Blockchain can trigger a completely new way of doing the manufacturing business.
We all know that supply chain forms the base of every manufacturing industry and Blockchain can prove to be a catalyst to boost the supply chain system. With the intervention of Blockchain technology, the entire supply will become more efficient thereby increasing the product quality, tracking and tracking product and with all this, the manufacturer will be able to meet the demand of the customer on time and also ensure that quality product is delivered to the customer.
Blockchain In Manufacturing
The blockchain is a digital distributed ledger technology which stores all the data exchange by time-stamping it. Because of this tracking of data becomes very easy with Blockchain technology. Moreover, once it stores the information, then it is nearly impossible to change the data, and that forms another key feature of Blockchain.
So, what are the key features of Blockchain which can prove beneficial for the manufacturing industry?
Talking about the key features of Blockchain technology then it includes the following :
- Immutability– It means that its impossible to change the data or information once it becomes the part of DLT or Blockchain.
- Easy traceability– With Blockchain it becomes easier for everyone to trace the data.
- Decentralization– Blockchain is a decentralized platform that makes the data distributed in the network instead of being stored on the central server.
- Data security and transparency- These are yet another two important features of Blockchain. Since all the information is cryptographically stored, it is not easy for anyone outside the system to change it. Moreover, all the information is visible to the entire system or people in the network, thus making it the most inevitable technology of the future.
When it comes to the application of Blockchain in the field of manufacturing than with the amalgamation of Blockchain with IoT and 3D printing we can ensure of having a smarter and more efficient manufacturing process.
Let’s see how Blockchain can be used in manufacturing business-
As already mentioned, the supply chain is an integral part manufacturing industry and having a more efficient system will only ensure that the manufacturing business runs seamlessly.
Amalgamating Blockchain with IoT at the shipping level in supply chain enhances transparency, authenticity, compliance to product and contractual requirements thereby reducing the duplication of products and also counterfeit products. This becomes especially more important when it comes to a highly regulated industry like Consumer Packaged Goods, Aerospace and Defense, pharmacy. Combing both these technologies will give the real-time information of abutting a particular product ensure hassle-free shipping, tamper-proof storage, Temperature controlled product transportation and much more.
When Blockchain is used in the supply chain part, then the information pertaining to a certain products gets uploaded the time it is procured from the producer’s place, installing a sensor on the product and syncing the sensor with the ledger will ensure that you can do the real-time tracking of information thus ensuring that the product is authentic and real.
Smart Contracts is yet another area of application of Blockchain in the manufacturing industry. In the conventional system, while procuring a product, one needs to constant with several people and also the intermediaries. This consumes a lot of time. Moreover, the payment also gets delayed since the current system requires too much of time for payment validation and approval. On the contrary, if we take into account smart contracts, then these pre-programmed contracts can be very useful for the manufacturing industry. Smart contracts for a particular project can e created and when the conditions in the contract are met, the payment gest automatically credited to the person.
What Is Happening On-Field?
Well, it’s not only the theory that we are talking about, But Blockchain technology can also refine the supply chain system. IBM Blockchain is one such platform that offers enhanced data identity and managing data. Another forum, Blockchain Foundry works upon developing Blockchain based services for prototypes and product in manufacturing applications. BigchainDB renders scalable Blockchao services.
Conclusion- Well, it all looks very lucrative and Blockchain is definitely holding a strong future as far as the manufacturing industry is concerned. But when it comes to implementation then we need to check whether or not implementing this technology is beneficial for the company or a costly endeavor.