The Potential Of Blockchain
Internet of things (IoT) is conquering and transforming cities, homes, industries, practically everything around us by making them more efficient and smart. According to Gartner, by 2020, there would be more than 20 billion connected things across the globe, powering a market worth approximately $3 trillion. However the chaotic growth of IoT does pose several challenges in identifying, connecting, securing, and managing millions of devices. With the current infrastructure and architecture underlying the Internet, it would be extremely challenging to support the huge IoT ecosystem in the future.
One solution that is widely tipped to sway the balance for taking IoT adoption to the next level is Blockchain.
The Blockchain Adoption
Blockchain is a peer to peer distributed ledger technology of online records for a new generation of transactional applications which maintains a continuously growing list of cryptographically secure data records hardened against tampering and revision. Such a system is distributed, permission-based and, above all, secure.
Blockchain allows us to reimagine business interactions, operational efficiency and opens the door to invent new approaches for digital interactions. The distributed ledger makes it easier to create cost-efficient business networks where virtually anything of values can be tracked and traded, without a need for a central point of control.
Next Generation of transaction systems
Great Software Laboratory sees blockchain as the next generation of transaction systems, enabling IoT devices to participate in transactions, making it possible for information from devices such as RFID-based locations, barcode-scan events or device-reported data to be used with blockchain. Devices would be able to communicate with the blockchain-based ledgers to update or validate smart contracts.
One of the most popular application of blockchain technology is Bitcoin, a currency system that has taken tech-savvy merchants by storm. The exciting thing about blockchain is that we can use it for non-currency use-cases as well. Let us look at some sample use cases.
A cold shock hit the restaurant and hotel owners of Mumbai when Hindustan Times revealed a deadly fact: E.coli bacteria found in 92% ice samples in Mumbai (June 2016), leaving many ill and the incident comes barely a week after bread – a widely used quick meal.- news stories, shutdowns, and investigations shattered several restaurant chain’s reputations.
At the heart of Mumbai’s E.coli crisis was the ever-present problem faced by many that depend on multiple suppliers to deliver parts and ingrdients resulting in lack of transparency and accountability across complex supply chains. Unable to monitor its suppliers in real time, BrihanMumbai Municipal Corporation (BMC) could neither prevent the contamination nor contain it in a targeted way after it was discovered.
As discussed above blockchain technology allows us to transparently and more securely track all types of transaction, now imagine the possibilities it presents across the monitoring of entire supply chain. For example, everytime a product changes hands, the transaction could be documented creating a permanent history of a product from manufacturer to sales.
With this I would leave you all with one single thought “Will blockchain become a new operating system for Supply Chain Operating Networks?”