A supply chain can be thought of as a network of suppliers, manufacturers, warehouses, distribution centers and distributors. Building trust and collaboration among the major components of the supply chain creates strands and discrete chains of previously loose enterprises. Information collection and integration. As the scope of the supply chain becomes wider and wider, companies coordinate themselves and external resources through effective chain management to meet market demand. However, traditional supply chains have certain limitations. There is limited control over upstream and downstream, and there are risks of information asymmetry, opacity, and information fraud and tampering. The emergence of blockchain brings the possibility for supply chains to deal with and solve these problems.
Next, let’s look at the innovations that blockchain brings to the supply chain from the application of blockchain technology in the supply chain:
1. Blockchain data storage: The supply chain is a network that emphasizes the in-depth preservation and retrieval of data. It emphasizes ensuring that the required records can be traced in the past transaction layer and providing each component based on other components. Product creation source. Blockchain technology has the characteristics of distributed accounting, and can naturally upload raw material information, parts production information, each commodity transportation information, and each finished product data involved in the supply chain in the form of blocks. Save forever. In order to achieve the purpose of information integration and deep preservation;
2. Data tamper-proof: In traditional supply chains, data is mostly recorded and stored in centralized ledgers by core enterprises or participating enterprises in a decentralized and isolated manner. There is a possibility of data tampering and loss to a certain extent. Blockchain technology has the characteristic that data cannot be changed. Once the data is uploaded to the chain, no participant can change the data again, so the uniqueness of the data is guaranteed. The characteristics of blockchain technology improve trust between participants (i.e. enterprises and dealers), reduce communication costs between traditional supply chain participants, and allow data to flow losslessly and with fidelity on the chain;
3. Consensus-based transparency and credibility: Blockchain technology has a consensus mechanism. The joint application of consensus mechanisms, decentralization of data storage, and non-tamperability of data effectively solve the trust problem between nodes on the chain. Blockchain technology can promote the relative balance between nodes in the supply chain, allowing all parties to reach consensus based on the same standards, and improve the operating efficiency of each node.
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