Blockchain technology can bring a transformation in almost every industry. It has the potential to change the way of business operations in many industries such as banking, supply chain, retail, education, and many more. However, we will focus more on the potential of blockchain technology in the manufacturing industry.
A manufacturing industry includes various operations such as supplying goods, procurement, industrial operations, etc. Blockchain can bring a new way of doing business in the manufacturing industry.
You know that blockchain has a significant contribution to supply chain management and every manufacturing industry requires it. With the adoption of blockchain, the manufacturer will be able to navigate different supply operations and track product delivery.
Application of Blockchain in Manufacturing Industry
Blockchain technology is a distributed ledger for storing data with a timestamp. Due to this feature, it is easy to track data and the data can’t be altered once verified and stored inside the blockchain network. Before we understand how blockchain will help in the manufacturing industry, let us keep an eye on the key features of blockchain technology.
- Decentralization: One of the key features of blockchain technology is decentralization. This feature allows users in the network to conduct a transaction without any third-party interference.
- Immutability: The data in the network can’t be altered once it is verified and stored in the distributed ledger or blockchain network.
- Data Transparency and Traceability: Another key feature of blockchain technology is data transparency that means anybody can see the data within the network. In addition, it is easy to trace the records of data in the network.
- Data Security: As the data in the network can’t be changed so the data can be secured in a great way.
With all these features, blockchain technology can be used in the field of manufacturing by combining IoT and 3D printing. Now let us see how blockchain technology will impact the manufacturing industry.
Impact of Blockchain in Manufacturing Industry
We all know that supply chain management is required in every manufacturing industry. And an effective system can foster supply chain management in a manufacturing business smoothly.
For Supply Chain Within the Manufacturing Industry
With the combination of blockchain and IoT, supply chain management can be improved in terms of transparency and providing various contracts. This will reduce product counterfeit or duplication. This is useful in different manufacturing industries like consumer-packaged goods, pharma industries, defense industries, and aerospace industries. Using this technology ensures the effective shipping of goods in a controlled way.
In the supply chain, the manufacturer can install a sensor and connect to the blockchain network. This will help both the client and manufacturer to track the real-time data of the product. This can be used in the case of highly regulated manufacturing industries as mentioned above.
Another part of manufacturing industry is to settle business contracts. With the advent of blockchain technology, settling business contracts have become easy with smart contracts. One of the big issues for the settlement of business contracts in the manufacturing industry is the process is time-consuming. The payments also get delayed as it requires approval.
Using smart contracts can significantly improve the speed of contract settlement and negotiation within a secure and more efficient environment. As a result, the process of payment is also becoming faster. With the usage of smart contracts, automatic transactions can be possible. So, a smart contract is very useful in the manufacturing industry.
Well, blockchain technology has many utilities in the manufacturing industry which we have understood from the above information. However, it requires a good understanding of the working of blockchain technology before you use it for your business.
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