Blockchain and Supply Chain Management

Blockchain is a decentralized, distributed database that maintains a continuously growing list of secure data records. It first emerged in the context of Bitcoin, where it serves as a decentralized, distributed digital ledger recording all Bitcoin transactions.[1] Bitcoin is a currency that is controlled by the network of users instead of by centralized banks. Through the use of Bitcoin, money can be transferred directly

In the traditional banking system, when money is transferred through banks, they are notified to transfer the money; the bank(s) will send notifications and update accounts appropriately. The relevant data is stored in a database owned by the bank (or in multiple databases owned by banks), and users only have partial access to that data. Users must trust third parties. This has two implications. First, the bank has to make a profit, so in the aggregate, this means less for the other participants. In addition, if some third party or the bank itself manipulates the data or commits fraud, it might be challenging for all participants to quickly and efficiently detect this.

Blockchain and Supply Chain Management