Linfinity Explains the Importance and Application of Blockchain in Supply Chain
Wednesday, May 16, 2018 1:00 PM
HANGZHOU, CHINA / ACCESSWIRE / May 16, 2018 / Since the Industrial Revolution, the world's commodity economy has burgeoned and the supply chain has taken progressive shape. Around core enterprises and through control of information flows, material flows and capital flows, the so-called supply chain starts with the procurement of raw materials which are then made into intermediate products and end products which are finally delivered to consumers via the sales network. It is a functional network chain mode which integrates suppliers, manufacturers, distributors, retailers till end users into an entirety.
It can be seen that it is a corporate organizational mode covering a more extensive scope. It is not a mere material chain, information chain or capital chain connecting suppliers to users, but more importantly a value-added chain. But considerable problems exist within the supply chain of most enterprises: the lengthy process, low efficiency, high cost, and deficiency in credibility. These are mainly manifested in unbalanced production and marketing, excessive valueless campaigns and bullwhip effect, etc.
The blockchain, extensively speaking, is a technology that allows verified data communications to take place between participants in the system without being intervened by any credible central organization or authority, thereby creating a decentralized ecosystem.
Advantages of blockchain: decentralization, openness, autonomy, tamper resistance of information, and anonymity. These features of blockchain can be said to tally highly with the demands for supply chain, in terms of enhanced transparency and scalability, higher security, multi-participation, exploitation, and innovation, all of which to a certain degree adds the possibility of applying the blockchain technology in the supply chain system.
As known to all, none of the events ranging from Sanlu milk powder to the fake milk powder event in Fuyang Anhui to the event that some poisonous milk powder was marketed from Spain to the Chinese mainland days ago is disappointing and daunting to the Chinese people. With regard to the event of 8 tons fake milk powder from Spain at the end of April 2018, the criminal organization had purchased fake milk powder in bulk at a cost of €1 per kilogram from Poland and delivered it to Spain along with inner packaging bags and cartons printed with international well-known brands of milk powder, as substantiated by the police. Once the fake milk powder in bulk entered the packaging factory in Girona, the workers manually encased the fake milk powder per 600 grams into the branded packaging bags without any sanitary safeguard and then packed them in whole into the branded packaging containers, ready to distribute anytime. According to a survey, the main destination of most of the products was China. While the fake milk powder in packages sold up to €10 per 600 grams. It can be seen that this supply chain is problematic in that the purchase of raw materials was obscure so that consumers were impossibly informed of the real source of the milk powder. Had this supply chain been based upon the blockchain technology, people could have keep record of the journey of products throughout the supply chain from the place of origin to the destination in order to add trust and help eliminate distrust and doubt. The manufacturer could also have diminished recalls by sharing the activity logs on the supply chain with original equipment manufacturers and supervisory institution.
Fortunately, some domestic teams have been devoted to product R&D in this regard! The event of fake milk powder is a mere tip of the iceberg in the faulty supply chain management. Against the currently existing problems within the supply chain, the globe's first platform will emerge in China to apply blockchain in the supply chain system. Linﬁnity is a credible distributed commercial platform featuring credibility of data, transparency of information, cooperativity, high efficiency and interconnectivity that has been established on the base of blockchain, IoT, and big data technologies and to address corporate users' pain spots in real businesses and developmental appeals. To be based on the R&D of Linfinity and on the real experience in consultation service, information solution R&D and localization implementation during the service of the product implementation team in food, tobacco, clothing, medicine and more domestic and international TOP500 businesses over the past years, Linfinity Chain will perform continuous iterative update on the existing information solutions of Linfinity and expand the existing solutions to more customers within the same industry or across different industries, in combination with the reform in base-level blockchain technology. Meanwhile, to combine with the ever-perfecting business ecosystem of LFT Token, additional rising modes of interest distribution, from which manufacturers, logistical service providers, and terminal retailing channels can all benefit, will be expanded in a new secure and credible cooperative mode.
Supply chain has become an amazing case of applicability and outstanding use of blockchain. The organic combination of blockchain and supply chain means a win-win situation for both parties: On the one hand, the malpractices of supply chain would decline to an extreme limit since the blockchain can enhance transparency, scalability and higher security, etc.; on the other hand, the application of blockchain in supply chain would accelerate recognition into blockchain among the masses so that they will be able to understand and apply blockchain technology better through practice, promote the development in blockchain and lay a groundwork for additional application of blockchain in future. The combination of both is bound to create a new world.
SOURCE: Bitknow News