According to Christian Lanng, CEO and Co-founder of Tradeshift, a digital invoicing start-up, blockchain is not ready yet to fully support the global supply chain. He feels that companies need technologies that can digitize their supply chains from end-to-end so that they can respond to changes. This might be due to changes that are taking place, one being the US and China trade tensions that will, in fact, impact supply chains.
Although Blockchain was expected to strongly impact the supply chain, this executive points out that blockchain technology is not mature enough to support vast and complicated networks. There is a lot of work to be done before blockchain is ready to be applied to global systems.
Blockchain has the potential to use its ledge to record all, every transaction that takes place. Blockchain can ensure that everything will have authenticity and that all transactions will take place in a responsible way. For now, however, the problem is that the technology is not high performance.
One of the main problems, according to Mr. Lanng, is that the blockchain in some areas is not flexible and cannot adapt quickly to change. Of course, the blockchain is able to cut third-party intermediaries that often are present in the chain, which means that costs are cut and there is less headache for all involved. While there are government and private sector entities studying the possible uses, blockchain technology in terms of widespread use is still about 5 to 10 years away. More analysts and experts now have this view.
More on this topic next week.