Smart Contracts in supply chain
Communications is key, especially in Supply Chain. Unfortunately, miscommunication is what happens very often in this industry.
Supply Chain is a complex process that involves a great number of parties - supplier, delivery staff, distribution, retail and etc.
And with so many people in between the first and the last level of the chain, information can get lost or modified, affecting the expecting results and performance.
The solution to solve this issue? Blockchain Smart Contracts.
What is a Smart Contract?
Smart Contract is a computer-based protocol built to facilitate and automate negotiations or enforce a contract performance.
Built in a blockchain network, the digital contract works without the need of a third party. Once all the rules and agreements are settled, the protocol executes itself.
Smart Contracts in Supply Chain
How exactly a smart contract development can help solve the supply chain problems?
To begin with, the industry is desperately in need of a technology that can give all the parties involved a single version of the truth. That’s where blockchain and the digital contract play come into the game.
Smart Contracts are immutable. So, once the information is registered in the protocol, everyone has access to the same data, avoiding frauds and errors.
Besides that, the computer-based protocol, when paired with the Internet of Thing (IoT), can enhance product quality. A food shipment can have its temperature controlled by distance with a smart device.
Let’s imagine the temperature, for some reason, changes. This device, backed with IoT and Smart Contract, can inform itself that something is wrong and enforce the right temperature.
Smart contracts can do wonders for the supply chain industry, whether making all the parties involved have the same information, to secure product quality.
Looking for Smart contract services? Blockchain App Factory, one of the best Smart contract companies in the market, offer end-to-end blockchain solution for your business.