In the last blog, we understood what blockchain is at a broad level. Now, let’s see what it brings to the table for manufacturing companies. We shall look at 8 major reasons why manufacturers should adopt blockchain. If you are a manufacturer, read carefully! Hope you like it.
With evolving technologies, an increasing number of processes in manufacturing are going digital and becoming a huge source of data. And resultantly, transparency in sharing of data is becoming an important issue. All the stakeholders must have equal access to data.
In a blockchain, all the network participants share the same data and it can be updated only through the consensus of all participants.
Blockchain prevents fraud and unauthorized activity in the network and also protects the data. Compared to other record-keeping systems, blockchain proves to be more secure. Once approved, all transactions are encrypted and linked to the previous one – thus, very difficult for hackers to cause any harm.
In industries with complex supply chains, tracing an item back to its origin becomes difficult. Blockchain makes this process easier. The audit trail shows exactly where an asset came from and every stop it made on the journey.
With blockchain, one doesn’t need as many third parties or middlemen. For example, while completing a trade, one would not need to review a lot of documents to process it. All parties will already have access to the system. As the data on the blockchain can be trusted easily, one can save a lot of costs.
Better Inventory Management
Blockchain securely stores information for every single transaction or movement of material and every single stakeholder has real-time access to the data. Thus, with streamlined information flow, manufacturers are better able to decide on inventory levels and plan ahead of time.
Secure and fast payments
The highest level of security is required when it comes to making payments. Through blockchain, secure and quick payments can be made directly to anyone in the world.
The blockchain is not merely a storage or record system. The data can be analyzed to forecast and predict business situations, progress, and solving issues. It is useful for customer satisfaction by following delivery timings, smooth working of supply chain
Tokenization of Goods
When the manufacturing industries adopt blockchain technology, they will get the benefits of running a business in better ways.
For each type of goods managed in the supply chain, a smart contract is set up, where tokens representing physical goods can be created. One token corresponds to one batch of goods and can be measured in items, weight, volume, or size. Product information can be stored in connection to the token.
Thus, every stakeholder in the manufacturing ecosystem gets the benefits like authentic trustworthy transactions, records, traces, smooth working, less paperwork, time-saving and better management if they adopt blockchain.
The adoption of blockchain is increasing by the day across industries and applications. The faster the manufacturers shift, the better their long-term growth prospects.
We, at Rucha Yantra LLP, are highly passionate about emerging technologies. Hence, we shall keep delivering interesting pieces on tech on our website. Stay tuned to our Knowledge Corner for regular updates.