Will Blockchain Technology Revolutionize Supply Chain Applications?

by Steve Murphy 0

Hand of woman paying with contactless credit card, NFC technology

Ok so what is to prevent blockchain technology from revolutionizing the logistics around supply chain? The author of the article seems to think that it may be a matter of time and proven security. There is a good discussion comparing hosted system versus cloud-based, with inherent security advantages belonging to cloud applications, due to the tech provider necessary diligence in monitoring their possible breaches. This of course does not mean that cloud-based systems are hack-free.

Building unbreachable systems is virtually impossible. It is true that software that resides on site at a company is far more vulnerable than “platform” software (public or private clouds). That is because Cloud software providers do security patching on an ongoing basis.In contrast, for applications that reside at a corporate site, over 80 percent of breaches involved systems where security patches had been available for at least one year; 75 percent of breaches went undiscovered for weeks or months.

The discussion moves on to the technology itself and certain advantages to the distributed ledger as it applies to the movement and tracking of goods across the supply chain. Mercator has provided ongoing coverage to Blockchain, most closely in the emerging technology and corporate & enterprise payments services. We discuss how blockchain potential applications in financial services has garnered great attention, without apparent real proven success to date. That has not however, prevented billions of blockchain private investment dollars from adding up during the past two years. But this article is about non-financial supply chain applications.

…that billions of dollars have been invested in blockchain technologies. But the vast majority of this investment has gone into financial applications. So it is not too surprising this is the first I have heard about blockchain technology being applied to supply chain applications.

One area where the article may miss the mark however, is when the authors states that Bitcoin has never been hacked. This may be technically true, but when exchanges and mobile wallets are exposed as vulnerable (look at Ethereum just this week), it sort of doesn’t matter. Bitcoins and cryptocurrencies can be stolen, whether or not the coin itself has been hacked. But the article does conclude that if the blockchain is going to have any revolutionary potential, security will be the key.

Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group

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