Global Supply Chains are about to Get Better Thanks to Blockchain

Harvard Business Review
DA Ransbotham Blockchain Data Storage Business Model Bitcoin 1200 1200x627 57ea8f8224a0c

An E.coli outbreak at Chipotle Mexican Grill that left 55 customers ill in 2015 shattered the restaurant chain’s reputation.

At the heart of the Denver-based company’s crisis was the ever-present problem faced by companies that depend on multiple suppliers to deliver parts and ingredients: a lack of transparency and accountability across complex supply chains. Unable to monitor its suppliers in real time, Chipotle could neither prevent the contamination nor contain it in a targeted way after it was discovered.

Now, a slew of startups and corporations are exploring a radical solution to this problem: using a blockchain to transfer title and record permissions and activity logs so as to track the flow of goods and services between businesses and across borders.

With blockchain technology, the core system that underpins bitcoin, computers of separately owned entities follow a cryptographic protocol to constantly validate updates to a commonly shared ledger. In a nutshell, this is a global system for mediating trust and selective transparency.

To read the full original article, please click here.