BLOCKCHAIN SERVICE

24th March 2018

Dow InfoTech, LLC is expanding it’s services to Blockchain based Supply Chain IT solutions. Dow InfoTech is one of the very few companies currently that are providing “Blockchain-as-a-Service” in the Supply Chain IT space.

Our services include:

  • Blockchain as a service — Deploy, maintain and support on-premise and cloud-based blockchain solutions for enterprises
  • Consulting and training services
  • Education, alliance, and collaboration

What is Blockchain?

Blockchain is a technology that is revolutionizing how multiple parties transact. Traditionally transactions between people or companies are done via trusted middlemen like banks, large corporations etc. The middleman establishes trust and keeps a ledger of all transactions. Blockchain eliminates the need for trust and middleman by distributing the ledger across a decentralized network of computers and enforces “consensus” so everyone is in agreement with the ledger. Since the ledger is distributed there is no single point of authority or failure. Through math and cryptography blockchain ensures that no one can edit or delete an old entry, and no one can force a fake new entry into the system.

The applications for blockchain technology are manifold.  Agreements/contracts between multiple parties can be programmed into a blockchain so that the blockchain keeps track (ledger) of the state of the agreement/contract automatically. These are called Smart contracts.

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller is directly written into lines of code. The code and the agreements contained therein exist on the blockchain. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible.

Examples of blockchain being used in supply chains today

Source: https://www.forbes.com/sites/bernardmarr/2018/03/23/how-blockchain-will-transform-the-supply-chain-and-logistics-industry/2

Since blockchains allow for the transfer of funds anywhere in the world without the use of a traditional bank, it’s very convenient for a supply chain that is globalized. That’s exactly how Australian vehicle manufacturer Tomcar pays its suppliers—through Bitcoin.

In the food industry, it’s imperative to have solid records to trace each product to its source. So, Walmart uses blockchain to keep track of its pork it sources from China and the blockchain records where each piece of meat came from, processed, stored and its sell-by-date. Unilever, Nestle, Tyson, and Dole also use blockchain for similar purposes.

BHP Billiton, the world’s largest mining firm, announced it will use blockchain to better track and record data throughout the mining process with its vendors. Not only will it increase efficiency internally, but it allows the company to have more effective communication with its partners.

The transparency of blockchain is also crucial to allow consumers to know they are supporting companies who they share the same values of environmental stewardship and sustainable manufacturing. This is what the project Provenance hopes to provide with its blockchain record of transparency.

Diamond-giant De Beers uses blockchain technology to track stones from the point they are minded right up to the point when they are sold to consumers. This ensures the company avoids ‘conflict’ or ‘blood diamonds’ and assures the consumers that they are buying the genuine article.

There are several supply chain startups such as Cloud Logistics who saw an opportunity to provide blockchain-enabled supply chain solutions to improve efficiencies and reduce costs for the massive supply chain industry. More will most certainly join them as they realize the potential and demand for blockchain-enabled solutions to transform the supply chain and logistics industry.