Technology is consistently changing and shaping our industry, and this is truer now than ever before due to advancements like Blockchain. Blockchain is a technology that can be leveraged to simplify not only our industry, but also our everyday lives. However, blockchain itself is quite complex and can easily create issues if it’s not fully understood.
Many companies would like to implement blockchain efficiencies, but they’re put off by the high risk. This risk is mainly due to the fact that there is no industry consensus on many aspects of blockchain components. This includes features such as application requirements or product concepts.
Our executive team explores the pros and cons of the implementation of blockchain:
Pros
Blockchain is more than just a database or data storage system, and it can do more than store information. It can be shared with other parties safely and securely. As current systems of banking and data storage are left vulnerable to hackers, blockchain offers a safe alternative to protect assets, all without unlawful alteration.
Blockchain can also speed up processes and optimize functions, which are features that could contribute to a growing economy. These features would be welcome in the logistics industry, since processes could become automated and simplified while also allowing for more transparency for clients.
Cons
Although blockchain has many pros, it also comes with some cons.
Blockchain technology is not fully developed or understood yet. Many analysts warn against adapting blockchain platforms for large-scale production just yet. This is mainly because blockchain is slow and gets slower every time a ledger is updated and distributed. Also, alt-hough blockchain is more secure than other systems, it isn’t completely free of hackers. In fact, the anonymity of the technology can occasionally facilitate scammers.
Blockchain can be dangerous. Applying this digital language could also monopolize the market and force consumers to purchase from a singular buyer without even knowing it. This could mean giants like Amazon or Apple could have control over much of consumers’ lives in the future.
Pros and cons aside, it’s clear that blockchain is not a disruptive technology. It’s a foundational one. Interested in learning more about the applications of blockchain in the supply chain industry? Reach out to a team member today to get the conversation started.