The Role Of Blockchain In Supply Chain Management: A Study On Ethereum (ETH)

Blockchain role in the supply chain management: Study on Ethereum (ETH)

As the world moves to digital transformation, the concept of management of the supply chain (SCM) becomes more important. With an increase in e-commerce and global trade, companies face new challenges in effectively managing their supply chains. One solution that has gained popularity is Blockchain technology that provides a safe, transparent and decentralized platform for monitoring goods through each phase of production, transportation and storage.

In this article, we will explore the role of Blockchain in the SCM using Ethereum (ETH) as a study study. We will explore how unique features and opportunities of the ETH can be used to improve the supply chain management, identify potential challenges and inspection of the future of a logistics based on Blockchain.

What is Blockchain?

Blockchain is a decentralized digital book that records transactions on the computer network in a safe and transparent manner. It uses cryptography to ensure the integrity and authenticity of the data, which is resistant to touch and censorship. The first blockchain platform was launched by Satoshi Nakamoto in 2008 as Bitcoin, but since then various other crypto currencies have been developed using different protocols.

Blockchain role in the supply chain management

Blockchain technology has numerous advantages that can be applied to manage the supply chain, including:

• Safe and transparent monitoring

  : Blockchain allows you to create a record of the movement of goods through a supply chain, allowing companies to monitor their raw materials to complete customers.

• Improved efficiency : automation of data exchange and reducing hand paperwork, SCM based on blockchain can increase productivity by 30%.

• Improved Confidence : Decentralized Blockchain Nature ensures that all parties included in the supply chain have an equal access to information and check ownership.

• Reduced forgery : The transparent nature of blockchain helps to prevent forgery by allowing companies to accompany the authenticity of the product.

Ethereum (ETH) as a case study

Ethereum is a decentralized blockchain open code platform that allows you to arrange smart contracts in its network. Smart contracts are self-exhibiting contracts with special rules and conditions that are attached, which can automate different processes such as payment of payment, data storage and supply chain management.

How Ethereum affects the management of the supply chain

In the context of governing the supply chain using Ethereum (ETH), here are some ways in which it affects logistics:

• Smart contracts for payment processing : The ETH Smart Contract feature allows companies to create automated pay systems that can settle transactions without intermediaries.

• storage management systems based on blockchain : companies may use an eth to automate storage operations, including the monitoring of stocks and shipment management.

• Visibility of supply chain : ETH provides a decentralized data exchange platform, allowing the product monitoring in real time through each phase of the supply chain.

Challenges and restrictions

Although blockchain technology offers numerous advantages in SCM, there are also challenges and restrictions that need to be considered:

• Scalability : ETH scalability is still worrying, as it can be difficult to process high amounts of transactions.

• Interoperability : Different blockchain platforms cannot helplessly change the data between the system with each other.

3

UNDERSTANDING FUTURE LIQUIDITY POOLS