Various database and tracking technologies have been used in the past to digitize the supply chain workflow and establish provenance of products. However, none have been able to give all parties visibility across the supply chain.  Blockchain technology, for the first time, enables a solution to the trust problem, by bringing immutability and transparency, real-time shared access to all parties and therefore a single version of the truth.

Within supply chains, blockchain technology provides an encrypted digital ledger shared by all supply chain participants that provides permanent transparency and validation of transactions. It breaks down each action along the chain into a “block” and documents transactions every time a shipment changes hands.

“Blockchain technology, for the first time, enables a solution to the trust problem”

Various database and tracking technologies have been used in the past to digitize the supply chain workflow and establish provenance of products. However, none have been able to give all parties visibility across the supply chain.  Blockchain technology, for the first time, enables a solution to the trust problem, by bringing immutability and transparency, real-time shared access to all parties and therefore a single version of the truth.

Within supply chains, blockchain technology provides an encrypted digital ledger shared by all supply chain participants that provides permanent transparency and validation of transactions. It breaks down each action along the chain into a “block” and documents transactions every time a shipment changes hands.

In the garment supply chain for example, at each step a block is created documenting the transaction — as the textile manufacturer buys the raw materials, as the clothing manufacturer buys the textiles, as the manufacturer then ships the clothes overseas, and as they are imported and distributed to retail stores.  Linking these blocks or records together creates a record for all parties involved and provides details that all parties can access and confirm in real time.

This record becomes part of a permanent digital history as the product moves through the chain.  It creates the much sought after “single version of truth”, creating transparency, showing and verifying how each actor behaved.  It is not owned by any one trading partner, and no single party can modify, delete or append any record without consensus from all others in the network.