Crypto-Anchors and Blockchain Link Physical to Digital in the Supply Chain

Crypto-Anchors and Blockchain Link Physical to Digital in the Supply Chain

April 8, 2018

We’ve previously discussed blockchain’s use in the food supply chain to speed up tracking, and to aid in responsible sourcing and sustainable use of resources. Now let’s consider how it can combat supply chain fraud.

Blockchain could potentially verify the authenticity of products.  It’s estimated that the annual cost to the global economy of counterfeited items exceeds $600 billion. In some parts of the world, over 40% of aftermarket auto parts are counterfeit.  And, in some countries, over 70% of pharmaceuticals are counterfeit, resulting in the loss of life.

Part of the problem is the global supply chain itself, exacerbated by e-commerce.  Counterfeits can be substituted at almost any place in the supply chain.

Blockchain technology can digitally trace a product through the supply chain. However, one aspect is still missing.  How do you tie this digital record to the physical product?

Crypto-anchors will provide that link, according to IBM, which is developing several cryptographic products, including a computer as small as a coarse grain of salt. IBM considers this blend of digital and physical technology to be one of the top 5 innovations that will change our lives in the next 5 years.

This Continue reading

Facebook
Google+
http://ominthenews.com/tag/blockchain/page/2">
Twitter
Can Blockchain Break the Chains of Forced Labor?

Can Blockchain Break the Chains of Forced Labor?

April 8, 2018

In a previous post, we discussed blockchain’s use in the food supply chain to speed up tracking. Now it’s being used for responsible sourcing.

Can blockchain technology address the use of forced labor in countries that produce sugar cane?

Around 45 million individuals are in forced labor conditions worldwide, according to the International Labor Organization.  Many food and beverage companies are under pressure to eliminate forced labor.

In the U.S. State Department’s first major project to use blockchain for a social issue, it is working with Coca Cola to address this issue in its sugar cane supply chain.

The thought is that the transparency of blockchain may reduce the use of forced labor.  In and of itself, this technology won’t prevent unethical labor practices, but it could provide a chain of evidence for Coca Cola to document responsible sourcing of its sugar cane.

This post is based on the Reuters article, Coca-Cola, U.S. State Dept To Use Blockchain To Combat Forced Labor, by Gertrude Chavez-Dreyfuss, March 16, 2018. Image sources: Shutterstock / heromen30 and Shutterstock / DR MANAGER.

Discussion Questions

1. How important is the responsible sourcing of materials?

Guidance:  It is increasingly important. Continue reading

Facebook
Google+
http://ominthenews.com/tag/blockchain/page/2">
Twitter