<h1>What Is Blockchain?</h1><p>In the simplest possible terms, it's a chain of blocks, but of digital data rather than concrete. This data forms a distributed ledger of transactions that are carried out and verified by participants (or nodes) in the network, and creates records every time a transaction is entered. Whenever an update to the ledger is submitted, an automated process is triggered which requests the approval of the other nodes. Approved, updated records are time-stamped, signed cryptographically and added to the block. They're safe from tampering, but most importantly they're decentralised. Unlike more typical data networks, there is no single central core that controls the rest.</p><p><img src="https://s3-us-west-1.amazonaws.com/wevolver-project-images/froala%2F1600073021487-what-is-blockchain.png" alt="What Is Blockchain?" class="fr-fic fr-dii"></p><h1>Why Choose Blockchain?</h1><p>Blockchain provides a transparent and far more secure method of recording and storing transactions. Every time an event takes place in the life of a product, or a service operation is transacted, a new block of data gets added to the chain, which will be there permanently and can be seen by all participants. The information is heavily encrypted so that the transactions are protected from tampering.</p><p>Blockchain offers greater resilience because the ledger is permanent and distributed across the network in multiple locations. This means it can continue to function even if some network element fails, or if any one participant leaves the chain. Furthermore, there is no third-party intervention. Blockchain enables direct, business-to-business (B2B) transactions, cutting out the middlemen and simplifying the entire process.</p><h1>Blockchain In Manufacturing</h1><p>In the smart factory, automated controllers share data from a complex network of machinery, parts and processes. There are many participants in the value chain, including designers, logistics companies and machinery providers. Blockchain can register and monitor every stage of the manufacturing process as it turns a collection of components into a finished product.</p><p>Blockchain could help to mitigate risks, such as tracking down faulty parts. Manufacturing processes rely on the supply of multiple contributory components to produce larger pieces of equipment, and these can be sourced from suppliers and agency networks worldwide. Blockchain not only provides the means to see every component on the supply chain, but it does so in real time. This gives manufacturers the chance to identify any problematic elements before they are incorporated into the process.</p><h3>SMART CONTRACTS</h3><p>These contracts constitute tamper-proof agreements that may be made between two or more parties, and are entered as a transaction on the blockchain. Smart contracts have terms and conditions pre-set into them, and the contract executes automatically when these are met. They verify that their own conditions have been correctly carried out, monitor the performance of the agreed terms, and automatically release funds to the appropriate parties once the contract is complete.</p><h3>SUPPLY CHAIN MANAGEMENT</h3><p>Smart contracts can incorporate an entire end-to-end transaction. This may include multiple transacting parties who participate at any point through the supply chain. All parties may see the whole extent of the transaction, whose value and terms are fully integrated into the contract. Each stage of the supply and delivery process is recorded on the blockchain ledger once its conditions are met.</p><p>Blockchain technology is valuable to purchasers of source goods, as its transparency ensures the authenticity of critical credentials. These may include certificates of approved quality, status documents, and authorisations, which cannot be forged or tampered with. Source goods can be tracked as they pass through the supply chain by means of transit documents, RFID tagging and verifiable audit trails.</p><p>Manufacturers can access these real-time activity logs to monitor the passage of source parts and finished goods. All purchases, sales and inventory can be monitored by all parties, helping to overcome the nuanced complexity of traditional supply chains. Manufacturers are also moving away from the old service model, where parts are replaced only after they fail, to a pre-emptive purchase model which maximises systems uptime.</p><h3>STREAMLINING</h3><p>Blockchain could benefit industrial processes, as manufacturers begin to leverage the IIoT and use predictive analytics. The smart factory will provide information on the equipment, its parts, and service schedule. These can be registered and stored on the blockchain, together with predictive maintenance cycles that ensure equipment is proactively repaired before it breaks down.</p><p>The increased level of visibility offered by the distributed ledger will also allow the whole global service chain to track replacement parts, ensuring they are supplied in time for repairs to be made. Blockchain can execute any form of smart contract automatically, provided it is triggered by measurable terms or conditions. Thus it can monitor timely delivery of goods and equipment performance, and automatically carry out repetitive processes such as scheduled maintenance cycles.</p><h3>TRANSPARENCY</h3><p>Trust has always been an issue between buyers and sellers, and used to involve complex relationships being built up over time. The quality of products had to be assessed and certified, the delivery times shown to be reliable, and payments made as agreed and in a timely fashion. Blockchain takes the fear and hesitation out of these relationships, and does not require years of dealing to acquire a stable of trusted suppliers.</p><p>Since every transaction on the ledger must be validated by the network, the blockchain is the sole version of the truth. It's wholly transparent, which guarantees the trust of all participants. Where critical data needs to be captured, stored and shared securely, the distributed ledger technology provides the level of trust that might otherwise be lacking between parties.</p><p>Intellectual property relating to innovation in design, for example, is a secret usually kept well guarded, but in this manner, ownership can clearly be demonstrated. Manufacturers can also use blockchain technology to develop new types of business model, as well as extending the boundaries of traditional production far beyond the factory floor.</p><h3>INNOVATION, EFFICIENCY, SECURITY AND TRUST</h3><p>Blockchain significantly enhances transparency and trust between participants in the manufacturing process. It benefits innovation in design and can be integrated into current processes to improve efficiency and security. Adopting blockchain is not without risk, as existing IT processes, legacy systems and infrastructure will have to be overhauled and will require considerable investment, but its benefits are manifest.</p>

Find out how blockchain technology is changing the manufacturing industry and how the factories of the future will use the technology alongside others to create smarter factories.

Blockchain in Manufacturing

<p>Whenever the word blockchain comes up, most people think of financial technology and cryptocurrencies. That&#39;s only the tip of this revolutionary iceberg, which is capable of much more than just bitcoin transactions. One of its potential ground-breaking functions is to use blockchain in procurement, which could significantly improve a company&#39;s strategic planning and operational performance.</p><h2>What Is Blockchain?</h2><p>Firstly, yes, it&#39;s a chain of blocks. In this instance, a block is a block of data. This data is a time-stamped ledger entry containing immutable records, but it&#39;s decentralised. That means that the information is held on a cluster of computers and distributed amongst them. This is the chain. Every time something happens to a product or a transaction takes place, a new block is added to the chain. The information is secured cryptographically, and each participant has access to it, but there is no single central controller. It is a heavily encrypted, distributed ledger.</p><p><img src="https://s3-us-west-1.amazonaws.com/wevolver-project-images/froala%2F1587632440309-blockchain-graphic.png" class="fr-fic fr-dib" style="width: 788px;"></p><h1>Blockchain In Procurement</h1><p>As far as procurement is concerned, blockchain is a secure method for tracking a product or transaction from source to acquisition and payment. A new block of data is built for each transaction down the supply chain, or during the process of turning a component product into finished goods. Since the information is encrypted, the procedures are immune to tampering. Also, as there is no third party controlling the process, blockchain enables B2B or business-to-business transactions, which simplifies the whole supply chain.</p><p>Many innovations in procurement processes and supply chain management could be instituted using blockchain technology. Some of the applications and potential benefits of the distributed ledger system may include the following.</p><h2>SMART CONTRACTS</h2><p>Blockchain in procurement could benefit substantially from using smart contracts. These tamper-proof agreements can be concluded between two or more parties, and can execute themselves automatically when pre-set terms and conditions are met. Smart contracts are capable of self-verification, checking the performance of their own conditions and ensuring the terms of the given contracts are carried out. They can also automatically release payment to the relevant party or parties when the contract is completed.</p><p>Smart contracts can cover an end-to-end transaction between multiple parties throughout the whole supply chain. The value and terms of the entire transaction are fully integrated and visible to all parties, with each stage of the process being recorded on the ledger when its conditions are executed.</p><h2>SUPPLY CHAIN TRANSPARENCY AND TRACKING</h2><p>Blockchain technology can enable purchasers to ensure the authenticity of goods at source, and to track their passage throughout the supply chain process. Suppliers will have to establish verifiable audit trails of all goods, which can also be tracked from source to delivery. The transparency of distributed ledger technology means that such critical credentials as authorisations, certificates and qualifications of status cannot be forged or otherwise compromised.</p><h2>EMBEDDING TRUST</h2><p>This transparency also helps to build trust and develop good business relationships. Due diligence is necessary for the mitigation of risk between unknown parties, but some companies are reluctant to put in the necessary time and effort for it. Blockchain technology offers open access to the ledger for all participating parties, making due diligence a much faster and simpler process. The quality of goods and services supplied can be visibly rated, together with the performance of the supplier.</p><h2>STREAMLINING PROCESSES AND SYSTEMS</h2><p>Blockchain could be extremely useful in enhancing purchase order management, with the transactions fully visible to both sides rather than as files of paperwork for each participant. Placing, validating and approving orders is still a manual process in many companies, as well as invoice and payment processing and multi-way matching. The whole request-to-receipt procedure could be radically streamlined, from a multi-step operation documenting every individual piece of information, to a streamlined blockchain ledger.</p><h2>SECURITY AND SETTLEMENT</h2><p>Using blockchain smart contracts and purchase orders, transaction conditions could be set that would automatically trigger the agreed settlement monies when the process is complete. All confidential information and payments are secured by the encrypted technology on the distributed ledger, which is cheaper and more secure than cloud storage.</p><p>Blockchain has a great many benefits and opportunities for procurement professionals. From audits and payments to tracking assets and inventory, blockchain technology in procurement could significantly enhance transparency and trust. It may be integrated into current procure-to-pay processes, to provide security and a greater degree of efficiency. Blockchain in procurement has the potential to improve both business relationships and operational performance, and make procurement processes far more robust.</p>

Whenever the word blockchain comes up, most people think of financial technology and cryptocurrencies. That's only the tip of this revolutionary iceberg, which is capable of much more than just bitcoin transactions.