Blockchain is a ledger system that has become relevant to the financial industry due to cryptocurrency. That said, Blockchain technology can provide benefits to logistics and supply chains in the form of asset tracking. As the worldwide supply chain continues to expand and become more complex, proper tracking and monitoring of materials is required. Blockchain can make asset tracking and logistics more transparent, safe, and efficient.
How Blockchain Technology Works
Blockchain is a system that tracks activities permanently in a shared database. The transactions are public to those in the network, and no one can edit them. Whenever a transaction occurs, pertinent information is documented onto a block. These blocks connect to previous events, and together these events form a chain.
Greater Transparency for Supply Chains
First of all, Blockchain technology provides transparency for organizations looking to track assets and provide logistics solutions. This technology is practical for supply chains. All relevant parties within a supply chain or logistics flow can follow a transaction from start to finish. This capability is crucial for companies and their customers. Blockchain technology is a distributed ledger, meaning those involved in the network can view relevant information regarding a business agreement. The record of each transaction stays in a single database. Each member of the network has access to this database. Once an asset is purchased and transferred from one party to another, the transaction is visible to all. This transparency allows for clear communication and higher-quality transactions. The customer will not be left guessing, and the corporation will see the whole process.
Safety Improvements through Blockchain Tech
Not only does Blockchain technology provide transparency, but it also allows for safer transactions. The ability to trace assets can cut down on fraudulent transactions. To make a change, each member must validate the deal. The capability of viewing each transaction helps to mitigate fraud. If suspicious activity is occurring, it will be visible within a monitoring interface. Also, the information from the Blockchain is available on various computers instead of a single server. Without a single server, the information will be more difficult to access for those who could steal data.
Boost in Efficiency for Logistics
Lastly, the transparency and safety of Blockchain technology can make logistics and asset tracking more efficient. Traceability and security reduce the need for a third party to monitor and report each transaction. This technology cuts down on costs and makes the entire process quicker. There is no need to monitor multiple ledgers.
Another reason Blockchain is so efficient is because of smart contracts. These "smart" contracts automatically initiate specified steps depending on preset criteria. This programming process automatically updates the ledger, eliminating human intervention to control the process, thus simplifying asset tracking processes. The conditions of the contracts can include things such as automatic payments, sending specified assets, and checking shipments.
Summary: Blockchain and Supply Chain Transformation as Part of Asset Tracking Software
Overall, Blockchain is a growing technology that can help with logistics, supply chains, and the asset tracking world. Link Labs is already providing solutions for companies in a variety of industries, including logistics and supply chains. With AirFinder Everywhere, tracking and monitoring assets indoors and outdoors has never been easier. Learn more about AirFinder by booking a demo today.