Blockchainseems complicated, and it definitely can be, but its core concept is quite simple. A blockchain is a type of database. To be able to understand blockchain, it helps to first understand what a database is.
A
database is a collection of information that is stored electronically on a
computer system. Information, or data, in databases is typically structured in
table format to allow for easier searching and filtering for specific
information. What is the difference between someone using a spreadsheet to
store information rather than a database?
Spreadsheets
are designed for one person, or a small group of people, to store and access
limited amounts of information. In contrast, a database is designed to house
significantly larger amounts of information that can be accessed, filtered, and
manipulated quickly and easily by any number of users at once.
Large
databases achieve this by housing data on servers that are made of powerful computers.
These servers can sometimes be built using hundreds or thousands of computers
to have the computational power and storage capacity necessary for many users
to access the database simultaneously. While a spreadsheet or database may be
accessible to any number of people, it is often owned by a business and managed
by an appointed individual that has complete control over how it works and the
data within it.
BlockchainTechnology is changing the way organizations can track and manage supply chains
from verifying sustainably produced goods to ensuring authentic goods are
placed into the stream of commerce.
While
most supply chains are already managed using specialized software, cloud
services, and analytic programs, blockchain offers the promise of further
reducing manual (ofter paper-based) processes, enhancing traceability
(particularly for regulatory compliance), and reducing IT costs.
Blockchain
offers the ability to trace digital and physical products through unique
identifiers as they move from manufacturer to consumer. A recent McKinsey
report estimated that "replacing the traditional processes with
distributed ledger technology could increase trade volume by 15% and U.S GDP by
up to 5%."
- How blockchain provides
provenance, authenticity, and traceability for products and product parts.
- How blockchain can offer real-time
updates for financial transactions and enable financial reconciliation via
real-time updates and multi-level visibility,
- How blockchain smart contracts can
enforce pre-agreed rules to help optimize planning and disruption
response, speed up execution, and automate reconciliation across multiple
organizations/parties.
- How other organizations have
improved partner/ecosystem operations, enabled real-time optimization, and
increased collaboration, transparency, and trust
We
hope you have found this article informative and interesting. For more
information or queries contact us to know more about this technology.
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