CEO and co-found of Tradeshift, Christian Lanng, believes that blockchain technology is not mature enough to support the global supply chain — a bold statement considering the hype around the emerging tech.
Currently blockchain is a good idea when there are multiple stakeholders involved since it records every transaction, CNBC reports. Supply chains often have many stakeholders touching the goods and moving them around and blockchain would be able to manage the flow and be sure of integrity, Lanng explains to CNBC.
However, the technology hasn't been proven to work yet and is expensive to implement.
Existing supply chains were not build for change, and to solve that issue companies need technologies that can digitize their supply chains, CNBC reports.
Blockchain has become a buzzword among the industry, with companies every day introducing their own ledgers. With the technology still being new, its benefits are more theoretical than practical, CNBC reports.
It is predicted that blockchain application will be seen in supply chain management rather than finances. As the technology continues to prove that its able to eliminate the need for third-party intermediaries, costs will continue to lower and increase business efficiency.
Major adoption of the technology is still ten years away, CNBC reports. However, companies and governments will continue to explore its potential uses.