The Bitcoin has just breached 14K.
One bitcoin is worth 14,000 US Dollars as of the close of the market on December 6th. It was trading at 12K a couple of days ago. And a year ago it was trading at two thousand dollars.
And the Bitcoin does not have any intrinsic value – it is not really a coin although it is actually “minted” by a mysterious guy named Satoshi Nakamoto – whose existence is unknown. It is digitally minted by computers solving a puzzle. Initially it was the problem of double spending. The same currency being duplicated and used in two different places………..
Bitcoin 100K? Why do we care about the Bitcoin in the supply chain world?
The origin of the bitcoin was from a technology called the Blockchain. The tech industry is currently enamored with blockchains. Wall Street is willing to sky high valuations to any company that is even remotely connected with block chains.
This evolving technology has huge implications for solving supply chain problems.
A Blockchain is a transparent, digital ledger that records all transactions securely and allows verification and validation by a decentralized network of computers – now that is a mouthful.
In short, think of the connected value chain with the addition of encryption, validation and transparency. A manufacturer can trace a bad quality product all the way to the machine that produced it or the raw material that caused it and the supplier that supplied it in a few seconds.
Blockchain has some excellent Use cases in supply chain –
* Traceability in the Food supply chain
* Contracting between different parties that are in remote corners of the globe
* Goods transported across different regions and requiring customs clearance
* Traceability in the ethical supply chains – child labor, blood diamonds etc.
Do you have a Blockchain application in your supply chain? Let me know if you want to talk more about emerging technologies in the supply chain.