Supply chain optimization with blockchain​

Blockchain enables transparency and accountability in supply chains by providing irrefutable data points and tracking capabilities from source to end consumer

Smart contracts automate operations, reduce manual processes and costs, while enabling features like parametric insurance and automated settlements across multiple currencies

Digital passports powered by blockchain help combat fraud by tracking product journeys, especially at critical points like ports where tampering often occurs

Integration of IoT devices, RFID tags, and AI enhances verification and monitoring capabilities while feeding validated data into blockchain systems

Private permissioned blockchains are preferred for supply chain applications due to regulatory compliance needs and involvement of multiple stakeholders

Key factors in choosing a blockchain platform include scalability, processing costs, regulatory compliance capabilities, and ecosystem support

Tokenization creates incentives for platform adoption while enabling asset collateralization and providing treasury functions

Successful implementation requires determining what data belongs on vs off chain, integration capabilities with existing systems, and managing compliance requirements

Major challenges include ensuring data accuracy at entry points, managing costs of blockchain transactions, and standardizing processes across different jurisdictions

The industry expects significant adoption growth once major players or regulations drive broader implementation, though timeline remains uncertain