With the rise of globalization, global trade has grown significantly. Goods worth trillions of dollars are shipped all across the world every year. However, even as global trade continues to grow and become more complex, certain fundamental problems remain unresolved. One of those problems is that of the authenticity in the supply chain. Current systems make it difficult to trace goods through the system. This makes it easy for goods with fishy backgrounds such as those obtained through conflict to make it through the supply chain. On top of that, counterfeit goods are able to make it through the supply chain, leading to billons in losses for manufacturers. All these are problems that can be solved using blockchain technology. Several blockchain projects are making this possible, and as they gain adoption, their valuations will grow too.
One of the projects that will play a huge role in transforming the global supply chain network is IOTA (MIOTA). Recently, Fujitsu a key IOTA partner came out strongly in support of IOTA as the perfect DLT for auditing the manufacturing process. According to this company, IOTA is an immutable source of truth, one that can help eliminate inefficiencies in the manufacturing process. Similarly IOTA can play a huge role in streamlining the global supply chain. The global supply chain is made up of three critical components. The first one is the physical movement of products. The second one is the movement of documentation that validate the physical goods. The third one involves the movement of money as payments for the goods and services moving across the world. To ensure authenticity in the global supply chain, the most important part is to ensure the validity of the data of information/documents supporting the goods. IOTA offers a perfect and immutable way to store such information, thereby dealing effectively with the problem of authenticity and ethics of the physical goods being shipped. With companies like Fujitsu pushing IOTA, it won’t be long before it gains widespread adoption in the global supply chain network.
The other blockchain that will play a huge role in streamlining the global supply chain is XinFin (XDCE). XinFin is a permissioned blockchain, which means that all parties concerned in the supply chain have as much information as possible, about the products that are moving through the blockchain. Since blockchain is in its nature trustless, it is possible to trace goods from their points of origin, all through the supply chain, without any biases that come with centralized systems. In the future, XinFin will play a huge role in data authentication in the supply chain, especially now that the XinFin team is pushing into China and India, two key manufacturing nations that have a huge stake in the global supply chain.
The third one is Vechain (VET). Vechain is working on authenticating physical goods using the blockchain. Through its cold-chain logistics IoT devices, it is possible to track goods all the way from their point of origin all the way to the consumer. Vechain is especially useful in the luxury goods market, which has been hit by counterfeits in the recent past. Through Vechain, a consumer can authenticate whether the luxury products they are using are actually from the brand owner, or they are just knock-offs. This will without a doubt play a huge role in cutting down on counterfeits in the future.
With their huge use-case in the global supply chain network, the growth of these crypto projects is pretty much guaranteed. They are offering solutions to a real need, and that’s a huge plus to their future valuations.