The World Economic Forum wrote that blockchain and digitization of supply chains could help survive a crisis like the corona virus.

Blockchain is the technology that enables payments with cryptocurrencies like Bitcoin. All Bitcoin transactions are stored on it. The special thing is that these transactions are visible to the public.

Solve unexpected problems

Ziyang Fan and Rebecca Liao wrote this in a blog post published on the website of the World Economic Forum. Fan is the head of digital trading at the WEF and Liao is vice president of the blockchain company Skuchain.

They are of the opinion that the pandemic is forcing many companies to deal with problems in their supply chain. Transparency within the supply chain is therefore necessary to avoid such problems in the future.

Many companies would only see the end product. “They usually have little or no knowledge of suppliers further down the chain,” it says. This would make it difficult to identify weaknesses further down the supply chain.

Transparency that also guarantees data protection

Fan and Liao write that the blockchain offers transparency while ensuring corporate data protection. A well-developed blockchain offers all relevant parties more access to information within the production process.

Blockchain is the ideal technology to ensure that verified information about services and risks can be shared with all relevant parties. This should also be ensured if there is no direct connection between the individual suppliers.

Data from paper into the digital age

Nevertheless, Fan and Liao are aware that a lot still needs to be done before blockchain technology can be used. One has to digitize data, for example. Many offices are currently closed, so companies are denied access to the information that is written down on paper. Paper copies are still commercially available in many countries. A cultural change is necessary in which much of the information for supply chains is digitized.

Image by Tumisu from Pixabay

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