Editor’s Note: In 2019, just about everyone in the technology world is talking about and writing about Blockchain distributed digital ledgers, including the supply management world. It’s not the cool new thing everyone’s talking about but hardly anyone’s doing — it’s real, and it’s happening. When mated with other emerging technologies and innovations, like connected devices (aka, “The Industrial/Internet of Things”), digital currencies, mobility, and virtual assistants, the sky is literally the limit for Blockchain. It has enormous potential to disrupt supply chain, risk management, procurement, and finance/accounts payable operations. Because of this potential we’ve been following Blockchain’s rise, development, and news cycle carefully. That is part of my job here at Ardent Partners — a job that I embrace as our resident “Tech Futurist.” So, sit back, relax, and enjoy the latest installment of When Blockchain Meets Supply Chain!
GrainChain’s Blockchain-based Platform Sprouts in Tamaulipas, Mexco
Earlier this month, Texas-based GrainChain, which provides a Blockchain-based commodity trading platform to the agricultural industry, announced a formal arrangement with the Mexican state of Tamoulipas to facilitate the trading of bulk dry goods between farmers and buyers. Under the terms of the deal, GrainChain will provide its Hyperledger-based Blockchain platform and associated sensors to Tamaulipas farmers, who will then integrate sensors across their farms, in order to automate much of the trading process. This platform digitizes and automates the sourcing, contracting, invoicing, and payment fulfillment processes that are so familiar to many sourcing, procurement, and accounts payable teams.
GrainChain’s platform works by creating a digital contract between farmer and buyer, sending that contract to the Blockchain platform, and drawing certification information from the farmer’s fields and silos as to the quantity and quality of a particular dry commodity. Once a shipment is initiated, the platform releases payment in the form of a dollar-backed stablecoin held in escrow to the farmer, which is then converted to whatever flat currency the farmer prefers. According to GrainChain officials, this arrangement will enable farmers, many of whom depend on fast and easy access to capital, to trade with suppliers that other brokers deem “high risk” and typically steer away from farmers. It can do this because GrainChain can effectively guarantee that buyers will fulfill their end of the deal and quickly and fully compensate farmers.
Amazon Managed Blockchain-as-a-Service Now Available
In case you missed it, Amazon Web Services, the eCommerce giant and pioneer of web-based services, recently announced the general availability of its Blockchain-as-a-Service (BaaS), enabling businesses to access Blockchain technology that is practical and scalable for their needs. Amazon’s BaaS leverages Hyperledger fabric (with Ethereum “in the works”) to provide interested parties with two options for deploying Blockchain: Starter edition and Standard edition. The Starter edition is more experimental, or for smaller-scale use (up to five members per network and two peer nodes per member), whereas the Standard edition allows for up to 14 network members and three peer nodes per member. Both versions enable users to invite others to join their network, transact with one another, and share certification documents in a trustless, verifiable manner that, paradoxically, builds trust between partners. Interested in seeing step-by-step instructions for getting started? Click here.
An IOTA Better: Using Blockchain to Drive Ethical, Sustainable Fashion
A couple of weeks ago, Blockchain publication, TheBlockCrypto.com, highlighted a new partnership between German Blockchain foundation, IOTA, and global packaging and manufacturing company, Avery Dennison, to develop a Blockchain distributed digital ledger to make the fashion industry more ethical and sustainable. IOTA and Avery Dennison will trial their Blockchain-based solution with luxury fashion brand, ALYX. Using a mobile application, consumers will be able to gain visibility into the supply chains of the products they purchase — beginning at the place and date of origin, the manufacturer, the raw materials used, and any certifications that the product or manufacturer may have. Giving customers visibility into where their garments are produced can shine a spotlight on the industry’s production methods and standards, and ideally raise and uphold those standards for workers in the garment industry, and the quality of the finished product.
RELATED ARTICLES
Icertis Partners with Mercedes Benz on Blockchain-based Supply Chain Sustainability Initiative
Accenture, Others Form Blockchain-Based Sustainable Supply Chains Initiative
Supply Chain Just Got RATIO’d: BLOCNETS Launches Blockchain-as-a-Service
