Three things that trading companies need to know about the blockchain
Many have heard about the blockchain, saw the commercial about the power of the blockchain and searched the Internet for information about it. However, most people, including business leaders, understanding this technology is still very limited. It is unlikely they will explain to you what is the blockchain, how it works and why it is so important.
Simply, the blockchain is a distributed registry that allows several stakeholders to use the same information. The blockchain can’t be hacked or manipulated. However, this explanation is likely to be little, if we are talking about the use of this technology by retail trade companies and their customers.
The real and burning question: why do trading companies blockchain, if many of its advantages for complex technical implementation and seems to be still far from practical use? Answer: because consumers are not static, their needs change very quickly. Requirements for delivery of the goods, its authenticity and transparency are becoming more stringent. If new technologies such as artificial intelligence, will ultimately help retailers to meet these expectations, the blockchain, is also likely to play a big role. It is likely to affect the field of mobile payments, supply chain and financial applications.
Here are the three most probable ways in which the blockchain technology will change the retail trade.
1. Increasing transparency and consumer confidence
The vast majority of consumers don’t care about the blockchain, but they have well-defined expectations and values when it comes to the purchase of goods. It is important that the tomatoes were indeed grown where stated, and jewels were not related to conflict zones. Of course, there are more pressing problems: for example, it’s important for people to know that the purchased products or medicines are safe.
Consumers have always had to believe in the word of various third parties (who are interested in profit), stating that the product is produced in a certain way and he is taken from a specific location. With bloccano it’s different: it refers to only one source of truth. If all providers use the same bloccano, retailers and their clients could track the same product from raw materials at the other end of the world until delivery to the final consumer.
Consumers could access this information and instantly find out the required information, for example, by scanning a QR code in the store. I think we wait it only twenty years later? In fact this is already happening in Chinese stores Alibaba and JD.
In some parts of the world such transparency is very important. It also strengthens the security measures required in the global market with increased pressure from consumers.
2. Guarantee product authenticity and anti-counterfeiting
As for transparency, enterprises with global supply chains will become more responsible regarding the quality and origin of products. The power of the blockchain not only helps primary and secondary markets to resell the goods, but also means a high degree of safety products.
Perhaps you are faced with fake spirits. In some parts of Eastern Europe and China black market alcohol has taken incredible proportions. Company Brown— Forman, which produces Jack Daniel’s, said that about 30% of all alcohol production in China is fake. Bureau for intellectual property of the European Union estimates the loss of profits to European countries in connection with the sale of counterfeit alcoholic beverages is 1.2 billion euros per year. Thus, the blockchain could play a huge role in the tracking of alcoholic beverages or drugs, which would be a vital application.
3. Reduce delivery time and improve logistics
If consumers do not think about how difficult it is to organize the supply of goods, that retailers familiar disputes between the parties, the difficulty of communication and tracking possible problems. Disputes complex and costly to permit, as are most often associated with incompatible systems, poor data entry and a game of “telephone”. Of course, artificial intelligence, independent vehicles and other technological innovations can smooth out the roughness. However, the blockchain is a single register with incontestable and immutable data, and history can make transportation and logistics more efficient, optimal and reliable. Blockchain promises endless positive effects for retailers and for consumers.
Of course, the blockchain will face many real problems of our world, before businesses and consumers can fully benefit from it. This technology, which is intended to promote confidence among retailers, consumers and others in the supply chain itself to some extent suffers from trust issues. For example, how to convince all participants of the supply chain (among them may be competitors) to connect to a single system and share their secrets?
However, there is no doubt that the blockchain will be able to make the business more intelligent and efficient. Retail sellers, who know how to integrate it into your business will be able to better meet the needs of customers.
Forbes on materials