Blockchain and cryptocurrency have been popular words in recent years. But what are they and why have they become popular in the manufacturing industry?
Blockchain, most frequently associated with cryptocurrencies, is a digital ledger technology that can be used to record and store transactions. Businesses all around the world, from finance to manufacturing, are all trying to find ways to utilise blockchain technologies. Keep reading below to find out more about blockchain, and the impact it has had on the manufacturing industry in particular:
What is Blockchain?
Thankfully, like the internet and other types of technology, you do not need to know how blockchain works in order to utilise it. However, it is a good idea to have a basic understanding of what Blockchain technology is.
Blockchain technology is a relatively new invention. In fact, this type of technology did not exist until 2008. Blockchain technology enables digital data to be shared but not copied. It is frequently described as an incorruptible record of economic transactions. A blockchain ledger can be coded to keep a record of almost anything of value, including financial transactions.
The Benefits of Blockchain Technology
No matter whether you run a manufacturing company, or you’re considering using blockchain to gamble online, there are lots of benefits of using this type of technology. Blockchain has the ability to revolutionise traditional business models. It offers a range of benefits including enhanced security, greater transparency, increased efficiency, improved traceability and speed of transactions, and reduced costs.
The Impact of Blockchain Technology on the Manufacturing Industry
The manufacturing of countless goods today entails a complex process, with hundreds of components required to make a simple product. The multicomponent nature of the process and the sequential aspect of manufacturing align well with the implementation of blockchain technology for data capture and recording along the manufacturing process.
Here are some of the ways that blockchain technology can improve a manufacturing companies supply chain efficiency:
- It helps the consumer to identify which products are made by a given brand, and this reduces counterfeits and ensures authenticity.
- It helps to increase responsiveness and transparency within an organisation.
- It allows manufacturing companies to track their assets.
- It helps to ensure quality assurance.
- It helps to improve regulatory compliance.
- It enables a business to quickly trace contamination to its source. This helps to prevent the business from having to recall a large number of products, which can be both costly and reputation damaging.
The examples we have listed above would have a positive impact on the manufacturing industry. Not only will it help to increase cost savings and reduce risks, but it will also help with things like averting product recalls too.
Though blockchain technology is in its early stages across all industries, manufacturing is leading the way, and we can see why. As you can see from the evidence above, blockchain technologies have the potential to radically change the face of manufacturing. This is why so many manufacturing businesses are choosing to implement this type of technology.