How Blockchain Will Transform The Supply Chain And Logistics Industry
Markets holding steady on Monday; Siacoin, Stellar, ReddCoin and 0x performing well. Cryptocurrencies are green this Monday morning on the Asian markets. Get the latest crypto market updates and tips by subscribing to our Cryptocurrency trading blog that we publish every week.
The weekend recovery has held firm and the majority of cryptos are still rising. Market capitalization has remained above $225 billion and is still heading upwards at the time of writing.
BLOCKCHAIN AND SUPPLY CHAIN
Having previously explored Gaming, Cannabis, Energy, and Asset-backed cryptos I thought I should express how cryptos and the blockchain are changing one of the biggest sectors in the world.
Looking towards the future and the utility of cryptos has been a key feature in the blog page and today is no different, after its use in currencies and the financial sector, supply chain has perhaps been one of the earliest beneficiaries of Blockchain technology.
It is yet to see mainstream adoption, but there are many promising projects and companies trying to make supply chains more transparent and secure. I will as always be sharing Platinum’s top picks but first, let’s look at the case for cryptos in the supply chain.
CURRENT ISSUES THAT CRYPTOS ARE SOLVING IN THE SUPPLY CHAIN
Managing today’s supply chains from sourcing to distributing goods is extraordinarily complex. Depending on the product, the supply chain can span over hundreds of stages, multiple geographical (international) locations, a multitude of invoices and payments, have several individuals and entities involved, and extend over months of time.
Due to the complexity and lack of transparency in current supply chain solutions the blockchain and crypto projects have been created to solve and improve this sector.
PROBLEMS IN THE CURRENT SUPPLY CHAIN SYSTEM
Supply chains consist of a network of retailers, distributors, transporters, and other suppliers all having a role in the production, delivery, and the sale of a product or a service. This chain of actions represents the complete manufacture and distribution process at any of its stages.
Supply chains have evolved from relatively simple commerce which was local and domestic to ever-increasing size involving multiple forms of transport, from Air, Freight, Sea, Rail to possibly several international stops, and so it’s incredibly difficult for customers or buyers to truly know the value of products, because there is a significant lack of transparency in our current system. Current days supply chains suffer from fundamental problems such as lack of tracing ability, semi-transparency and various trust issues. The more complex the process is from obtaining raw materials to the end user consumption, the more parties are involved and the greater risk of error is. Organisations are still using traditional tools and are yet to find solutions for redundant inventory in transportation, difficulties accessing information and inefficiencies in data exchanges.
WHAT CRYPTO’S AND THE BLOCKCHAIN CAN DO FOR SUPPLY CHAIN
As the blockchain is essentially a distributed, digital ledger, this can be used for many applications. This can be applied to be used for any exchange, agreements/contracts, tracking and of course, payment. Since every transaction is recorded on a block and across multiple copies of the ledger that are distributed over many nodes (computers), it is highly transparent. Ultimately, blockchain can increase the efficiency and transparency of supply chains and positively impact everything from warehousing to delivery, to payment. The very things that are necessary for reliability and integrity in a supply chain are provided by blockchain.
TOP SUPPLY CHAIN CRYPTOS
Currently number 19 in market capitalization [$726,979,527] and trading at $0.013109 per coin. Can be traded on Binance, Huobi, Bitfinex, Bithumb and many more exchanges. The daily trading volume is $16,204,357 and is a very stable and well-known coin in the industry. This Chinese government-backed project is building a DAPP proof of authority solutions platform. By using universal devices such as — NFC chips, RFID trackers and QR codes, Vechain wishes to create a trust free distributed business ecosystem, that will allow transparent and untempered information flow, efficient collaboration, and high-speed value transferring.
VeChain can boast a plethora of partnerships like The Chinese government (regulation and technology), DNV GL ($20B global quality assurance and risk management company), Kuehne & Nagel — largest Supply Chain and Logistics in the world- 10% of the world’s air and sea freight business, has over $20 billion revenue, The Chinese Tobacco industry, PWC Audit and Advisory incubator program, BMW, Renault, Nissan, Infinity and many more.
WALTON CHAIN (WTC)
Currently, number 54 in market capitalization [$116,262,735] WTC is currently trading at $2.90 per coin with a daily trading volume of $4,621,992 and can be traded on Balance, Huobi, Bithumb, and others.WTC focused their business model on the production of Radio frequency identification chips (RFID) to store value on the Blockchain, but unlike VeChain, according to Walton they already have a working prototype! Holding over 50 RFID patents, by using WTC merchants can build various sub-chains according to their own needs and eliminate by that the scale-ability problems that might arise in the future. The Walton RFID chip is scheduled for mass production at Q1 2019, and the company aims to focus on Warehousing, Logistics, Stores and the clothing industries.
My final coin is one far less known than the previous two: Modum. This project is an example of how projects are specifically looking at a particular industry. Modum’s primary focus is on the pharmaceutical industry.
Currently, number 270 in market capitalization [$13,759,781] MOD is currently trading at $0.647026 per coin with a daily trading volume of $163,178 and can be traded on Binance and Kucoin. Due to recent regulatory changes imposed on the pharmaceutical companies in the European Union, it became necessary to prove that none of the shipped medicinal products were exposed to an environment that may have harmed their quality. The projects intend to plant sensors in all the supply cabins where they will record and analyze variable conditions such as Temperature, Humidity, Light, Motion, Chemicals, and more. By using the Modum app, Manufacturers and consumers alike can ensure the safety of their products, saving up to 60% of their shipping costs using the MOD token as their payment tool. All the data gathered by this sensor will be stored on the Ethereum network and will be transparent, accountable, and integrated. The sender and/or the receiver will be notified of any temperature deviation and in this way, the temperature would be monitored in a cost-effective way.
CONCLUSION — CRYPTO’S AND THE SUPPLY CHAIN
If you’re looking for an industry with inherent problems tailored to the blockchain, the supply chain would be it. There will need to be significant adoption for projects to really affect change, but having identified how the problems can be solved using the blockchain there seems to be a simple and clear path to a very direct use case. being one of the largest industries in the world, Cryptos are in a great position to affect change for the better. I am excited to see the progress in the coming years. Adding coins to your portfolio that belong to projects solving real problems is, in mine and Platinum’s view, the key to successful portfolios and clearly, this sector is screaming out for a change! If you would like to book a live session with one of our Master Traders, please click below.
If you’ve booked your session above, we look forward to speaking with you soon! Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day!
Live from the Platinum Crypto Trading Floor.