Is it time for your business to consider blockchain traceability solutions? What is the challenge for CIOs to face while adopting the technology?
Firms in global supply chains have their problems identifying and tracking what they are bringing to the market.
It is complicated for food and beverage businesses to track perishable goods and shorten the time it takes to move and sell products. Or, as car manufacturers and assemblers worry about counterfeit and shoddy quality parts.
Enterprises with a progressive mindset are looking to blockchain technology to solve the problem of tracking the origin and quality of the product cycle. However, the application of new technology has never been easy. The question arises, what challenges will businesses face when adopting blockchain traceability solutions?
Let’s find out.
A concern emerges when it comes to the topic of data management of traceability systems. Who will ensure that supply chain participants generate the required tracking data authentically? Who will ensure that the traceability data is authenticated by the representative so that the customer has the right picture?
Third-party organizations and services are now primarily responsible for storing and validating these data. However, the high profits from fraud and ineffective management systems have created conditions for those who make illegal profits. The gap lies in that control is concentrated in the hands of a focus and the limitation of accountability.
Everything needs to be recorded and verified as happened on a traceability system in the supply chain to ensure transparency. Blockchain has the potential to create such a reliable supply chain. Blockchain traceability solutions are creating a smarter and more secure supply chain system because the products are trackable through a transparent and trustworthy check trail with near real-time visibility. Data on the blockchain is almost unchanged, only added and updated on all copies at nodes in the network.
Demand for blockchain traceability solutions in many industries, from agriculture, fisheries, to high-value products such as automotive, diamond, … Many organizations have been providing blockchain-backed solutions with the excitement of blockchain over the last few years. However, they have struggled to increase the overall quality of data. So this inefficiency has resulted in some skepticism in blockchain supply chain adoption.
When looking at the implementation of this distributed ledger technology, akaChain realizes three main challenges that are slowing the blockchain traceability adoption.
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Input data problem
The input data depends on the competence and authenticity of those converting physical reality into digital records. This limitation happens to all emerging technologies, including blockchain technology.
Origin data can be unintentionally manipulated or corrupted at the first entry point before being sent to the blockchain. Thus, if the input data is not verified, the blockchain will only contain junk data that cannot be deleted.
Therefore, the assessment and assurance of input data quality is an important starting step of the system. Combining sensor technologies and automatic input and giving the necessary verification criteria is one of the solutions to be performed.
Get companies to revise their well-polished workflow
In general, enterprise blockchain solutions are only in its early stages, and cases of great success with the technology are still limited.
The workflow of businesses operating in the supply chain is very complex, requiring a lot of time to build and put into operation. These processes also have very different characteristics for each industry.
While most businesses advocate for transparency and credibility, to put a new technology or model into practice, blockchain developers and enterprise blockchain platforms need to have real plans practical, ready and useful for businesses to follow.
For example, the low margin in the food supply chain causes farms, slaughterhouses, food manufacturers, and wholesalers to be working on highly optimized manual processes. There are many difficulties businesses can face when applying new digital technologies.
To deploy a blockchain food traceability system, businesses will have to train thousands of workers on farms, possibly tens or hundreds of kilometers apart. What your business needs is not just a good planning and training team, able to recognize real problems and deal with them flexibly.
Costs and benefits are a sensitive issue:
Cost and profit sensitivity is characteristic of the business leaders in the supply chain. Many businesses will be hesitant to invest a cost in new technology.
Also, the traceability system with warnings against fraudulent activities is a real threat to those trying to undercut the necessary costs of ensuring product standards. It is genuinely a perceived and fighting endeavor to be a fraud-free industry.
Small and medium businesses may also find it challenging to have enough capital to follow a new path. Finding capital and support from investment funds, banks, and the state is essential. FAO or World bank are both showing interest in blockchain and ready to invest in it. What matters is the feasibility and reliability of the project.
Design your blockchain traceability solution with akaChain
akaChain aims to provide our clients with more than a software solution. To do this, we review and analyze both of technical and business aspects of the problem. Consultation and discussion are held at every stage between business consultants, service designers, and software developers.
Built on Hyperledger Fabric, the largest enterprise blockchain platform in the world, akaChain wants to bring the fastest and most convenient deployment solutions to customers. akaChain uses built-in SDKs to run on any cloud while minimizing the time it takes to build blockchain traceability solutions from scratch.
Enterprises can quickly test blockchain on their business system after clarifying their wishes.
So get in touch with us or leave your contact information and we will get back to you as soon as possible.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/.
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