18 July, 2018
One of blockchain’s major selling points is the security and immutability of its records. If there’s a record of something on the blockchain, the information is timestamped, secure, unchangeable, and instantly updated in chronological order.
This is probably the most appealing feature for major suppliers looking for less costly and more dependable records of where their products are at specific times. In fact, renowned economist Jin Keyu, who joined the board of Swiss luxury goods giant Richemont last year, has stated that blockchain applications are of great benefit in the luxury market.
Keyu elaborated, saying:
“The business owners in this industry need to know where the diamonds, the stones, the gold come from, trace it back to the mine or recycling plant. For watches being sold, both the sellers and buyers would like to trace the products’ afterlife [and] authenticate them.”
In reference to the potential that blockchain represents in transforming industries, Keyu stated, “To me, blockchain essentially restructured the entire economic spectrum.” Tracking products and valuable items that have a high need for accurate provenance, like diamonds, is something that blockchain can easily accomplish—and Richemont, which also owns Cartier, is looking at using the technology to do just that.
As Bernard Marr describes, the supply chain industry is currently ineffective in a variety of areas. Due to outgrowing local demand and seeking markets that are farther away, the details of each supply chain are extraordinarily complex. Modern computers help, but most companies either commit to using established supply chains or move their manufacturing to China. Customers rarely know the true value and history of their product, and it’s extremely difficult to investigate corruption in a complex supply chain as well.
But with blockchain’s immutable public records, all times, places, and people are verified at every stage of interaction in the supply chain. Companies and public institutions benefit from a cheaper way to maintain their own records and ensure accuracy. Since blockchain technology can be used for any exchange and provides a number of benefits, it’s likely only a matter of time before supply chain standards change worldwide.
At Veritoken, we’re working on a project to track food supply chains. Every development and delivery step can be recorded with the item’s SKU on our blockchain and tracked all the way to store shelves. The technology is here, and the time to act is now.