Once considered a leading-edge technology, blockchain is now an innovation and customer experience enabler in many industries.
But what is blockchain, exactly, and what role does it play in digital transformation? Here’s a look at blockchain, how it works, and how it delivers value to manufacturers and retailers.
PODCAST: On episode 10 of Everyday Business, host Jacob Sopczynski, principal in the Flint office, is joined by Robert Konsdorf, CEO of EOS Detroit. Listen in as Jacob and Rob discuss the basics of blockchain.
What is blockchain?
Blockchain is a mutually distributed ledger of transactions that everyone involved can see, but no one can alter after the fact. Because of the security and transparency it enables, especially when dealing with threats like cybercrime, blockchain is considered an architecture of trust that allows various parties to do business with one another confidently.
When two or more parties use a blockchain to permanently record shared transactions, each of them possesses a copy. They cannot edit a previous transaction—they can only add a new transaction.
Every time someone records a new transaction, a timestamp is automatically added to it, and all the other parties subsequently receive that update. This decentralized framework makes it much easier to validate the authenticity of transactions, creating the foundation of trust necessary for fruitful business relationships.
How can manufacturers and retailers take advantage of blockchain?
Blockchain increases supply chain visibility. In light of the global supply chain problems caused by the pandemic, this should be of great interest to manufacturers.
For example, manufacturers can create a blockchain to track materials quickly and accurately as they move throughout the supply chain, recording when and where they arrived in specific locations. Additionally, they can also track who handled them at the time they were received.
This improves traceability and compliance, reducing business risk. It also increases operational efficiency, enhances customer service, and can boost revenue growth.
Blockchain powers innovation for manufacturing and retail
Manufacturers and retailers that haven’t implemented blockchain should consider its business advantages and its value as a digital transformation enabler.
Manufacturers and retailers can use blockchain to accelerate key supply chain processes and improve compliance. They can also tap blockchain to enhance the customer experience, increasing their competitive prospects in a dynamic market. With all of the benefits that blockchain offers, there’s never been a better moment to explore this technology’s innovative potential.
Information used in this article was provided by our partners at Sage.