With all the buzz surrounding Blockchain technology, the cryptocurrency has carved its place in almost every sector. From the education field to banks and from the mobile industry to government bodies, the technology has its say everywhere. And virtual currencies like Bitcoin, Litecoin, Ethereum, and Zcash fills the gap to complete the Blockchain transactions.
Blockchain simplifies the operations by bringing everyone on a common platform and keeps all the data in a decentralized manner. This helps in maintaining the balance and transparency. With its diverse applications, Blockchain is steadily moving towards the manufacturing sector also.
The significance of the cryptocurrency, digital asset designed to work as a medium of exchange on the Blockchain platform, can be well gauged by the attack of WannaCry incident from last year. The hackers directed the victims to pay the ransom sum through cryptocurrency. So, even Blockchain has two facets. Although no technology is fully secured in this highly digitalized world. Let’s understand the actual benefits of Blockchain technology in the manufacturing industry.
Following are the domains of manufacturing industry where Blockchain plays a substantial role:
1. Supply chain management
The foremost thing that matters the most in the manufacturing industry is the transportation of goods. With benefits of Blockchain in the limelight, the perks of traceability and cost-effectiveness come with it. Once the goods are produced and transported, the transportation can be traced conclusively which will ultimately cut the cost factor. Also, it will bring more transparency in ownership transfer, payments, and production process assurance.
2. Affirms Quality
The manufacturing industry regularly gets hit by the inconsistency. Going through the full process of the supply chain, the blockchain system can pinpoint the exact location of any irregularity detected. This saves time in figuring out the issue and implementing the patches at the required areas. Furthermore, a specific inquiry can be carried out to terminate any chance of the same failure.
3. Efficient Accounting
The next significant thing in the manufacturing industry is accounting, which again remains to be a grey area due to human errors. With the Blockchain technology in sight, carrying out entire transactions from the initial phase to delivering, the process is done in a flawless manner and maintains the transparency through the process. It also quashes the possibility of unwanted breach or tampering.
It is so reliable due to the fact that every single record is verified multiple times when the detail passes on from one blockchain node to the next. It also leaves a highly traceable audit trail, which helps in tracing the full lead.
4. Smart contracts
Many times it is noted that manufacturing contracts get tangled in between tons of time-consuming bottlenecks. This sharply hampers the business growth and effects the overall productivity. No, here comes the role of Blockchain technology. In a neatly configured environment, agreements and contracts can be signed and validated swiftly and that too within the knowledge of every concerned person.
This way, the need for intermediaries in getting the contracts also gets eliminated, and thus it helps in achieving a high degree of competence. The smart Blockchain solutions like ‘CREDITS’ is one such example. Through this platform, the companies can strike contracts and integrate the required services by pairing with its own internal cryptocurrency.
5. Worth In Stock Exchange
The industry is just not limited to manufacturing. The securities and commodities make a significant part of the manufacturing industry. The businesses are looking at ways to integrate Blockchain into this sector as well, as it offers better proficiency.
After comprehending its applications, Australia conveyed its plan last year only about shifting its stock exchange to a Blockchain-powered environment. The system is designed by Digital Asset Holdings, a Blockchain startup. Blythe Masters, CEO of Digital Asset, stated, “after so much hype surrounding distributed ledger technology, today’s announcement delivers the first meaningful proof that the technology can live up to its potential.”
8. Money Transactions
Now, comes it the online transaction, which actually a forte for Blockchain technology. There is no doubt that it offers a secure, fast, and cost-effective way of transferring funds around the globe. Many of the top companies rapidly back the technology due to decentralization.
Other payment services like PayPal, Google Wallet, and Skrill does offer to transfer money, but these services do have some or the other limitations. Some restrictions may be region specific, and some may be due to the bar on large transactions. And due to all this, the Blockchain system is gaining more significance, especially for international transfers. Also, there is less risk involved in Blockchain transactions, as compared to other means.
As per a report by Tractica, the growth in annual revenue of the enterprise applications of blockchain will take a jump from $2.5 billion in 2016 to $19.9 billion in 2025. It clearly highlights the benefits of Blockchain technology in the manufacturing industry. And I fully comply with its use until the process remains open to everyone who gets attached to the structure.
I indeed believe that Blockchain is still in its budding phase and there is still time before it gets fully embraced. Here are our other articles that can help you to learn more about this remarkable technology: “Why Ethereum Can Be The Future Of Blockchain?” “Here Is How You Can Develop Your Very First Blockchain Application,” and “Cryptocurrencies: The Investments, Benefits, And The Things In Between.”