How Blockchain is Driving New Opportunities in the Industrial Sector?
Blockchain technology was introduced in the year 2008 by an unknown group of people. This technology was first outlined in 1991 by Stuart Haber and W. Scott Stornetta. The idea behind the technology was to create a system where document timestamps could not be tampered with.
The technology suddenly came under the limelight as the backbone behind Bitcoin. This was when Bitcoin prices suddenly soared in 2017. Since then researchers, bankers, industrialists have been exploring all possible avenues to find new use cases.
While some may say that the Blockchain was just a craze and is fading away, there is a whole other portion of the population that says otherwise. Many have been looking for ways Blockchain can be used to optimize business processes, reduce operational costs and enhance security.
Even though Blockchain may have its drawbacks like most other technologies, it surely is a fantastic technology. It has opened numerous opportunities for almost every business. The deeper you dig, the more and more use cases surface.
What is Blockchain?
For those who might need a bit of revision, Blockchain is a digital, open, immutable ledger that records transactions between two parties chronologically. It consists of a constantly growing list of records called blocks that are linked using cryptography.
The value is exchanged over the internet without an intermediary and any particular block cannot be changed without affecting the previous blocks. Any data once created cannot be deleted.
Since Blockchain came into the limelight in 2017, industry experts have been trying to identify ways in which they can capitalize on the Blockchain technology. It can be used to increase efficiency, transparency, security and reduce costs in their respective fields.
Right from banking, infrastructure, transport, digital, supply chain, cloud storage to cloud computing, Blockchain has found its use in many more industries.
Regardless of the size, every organization is readily adopting this technology. If you haven’t entered this race yet, it’s time to get in touch with a software technology partner.
Still not sure if you can implement blockchain within your industry? It’s best to continue reading.
Blockchain Industry Applications
1. Supply Chain Management
The industrial sector which comprises construction and manufacturing can utilize this technology for numerous purposes. As the supply chain forms an important part of the sector, use cases can be plenty.
It can be used to increase accountability, traceability and even reduce the mileage frauds that are committed by reporting longer delivery routes than the actual.
Using Blockchain record-keeping solutions, all supply chain stakeholders can store and share all documents like bills, contracts, etc. securely and maintain transparency among all players.
This not only improves the security but also reduces the efforts and time that goes into the documentation.
These documents can be accessed by all the players involved in the process like shippers, freight forwarders, ports, ocean carriers. Paired with IoT and AI, Blockchain can be used to track shipments, containers, and all forms of certifications associated with products.
It thereby provides a digital passport for every product which in turn indicates its authenticity and prevents the sale of fake goods. Since there are several players in the supply chain, each player can access the Blockchain to extract information relevant to them using different software solutions.
This includes the buyer who can scan a code and access the information on the Blockchain to check every step of the production process.
Luxury goods manufacturers see vast scope in this arena as the technology can be used to track the history of ownership and also verify claims of authenticity by tracking the procedure. An additional use that Blockchain finds in supply chain management is temperature-controlled transportation and tamper-proof storing.
Are you thinking about implementing blockchain in the supply chain of your organization? Check out the list of blockchain enterprise solutions we provide.
2. Manufacturing
By improving supplier order accuracy, shipment traceability, product quality, and delivery schedules, manufacturers will be able to produce and deliver more and in turn, sell more.
Since all the data is cryptographically stored, anyone outside the system cannot change anything in it. All the data is visible to everyone in the network.
One of the most important uses of Blockchain in manufacturing is “smart contracts”. Smart contracts eliminate the intermediaries and facilitate immediate payments.
3. 3-D printing
Blockchain can also be used with 3-D printing to allow customers to decide when and where they want to produce something. This can be done by combining both the technologies to enable a point-of-use and time-of-use supply chain.
As several designers work together on a particular design file from different locations, having a blockchain database reduces the confusion and acts as a cloud.
3-D printing also requires highly powered computers in factories for calculations. The load is usually on one computer. Blockchain allows one to break down the calculations in a chain over several other computers thus reducing the load and speeding up the process through numerous other systems.
The security factor of blockchains allows secure sharing of sensitive data including the necessary printing parameters.
Blockchain can be used to securely transfer the data to a verified 3D printer exactly where they are needed. This will save inventory, imports, and logistic costs.
After production, the parts can be authenticated helping customers verify whether the products were counterfeited. This can be especially beneficial in manufacturing military equipment, airplanes, etc. These arenas not only require large parts and spare parts but require all the parts to be genuine.
4. Real Estate
This disruptive technology is also finding its use in construction by automating contractual processes and paperwork underpinning complex projects.
Real estate companies in Amsterdam are applying Blockchain to real estate projects in the city’s harbor. This is being done to set up a Blockchain-enabled project management system. It will also make the building development life cycle more efficient.
The emphasis is on recording transactions at binding moments where accuracy and audit trails are crucial.
A California based Blockchain firm is demonstrating the idea of making all the information about a project available to the owner in a Blockchain ledger. This would also be one of the deliverables of the project.
Any refurbishments to the building can also be documented. The whole repository can be transferred to new owners if the property goes up for sale.
The use of Blockchain in the industrial sector looks very lucrative. Further study of the sector can reveal many more use cases. But when it comes to implementation of these opportunities, a thorough evaluation needs to be done.
It must be determined whether implementing blockchain technology will actually be beneficial to the organization and the sector. Otherwise, it might just be a costly investment with very low returns.
Are you also planning to introduce blockchain technology to your business? Share your requirements with us at contactus@tipstat.com and learn how we can help.
