SPECIAL REPORT BLOCKCHAIN
By Amy Wunderlin
BLOCKCHAIN FINDS ADDED VALUE IN SMART CONTRACTS The applications for blockchain are immense, but smart contracts offer the potential for immediate results.
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et’s face it. In an industry where many companies are still trying to get a handle on their internal data—and some still even process much of their information manually—it’s hard to imagine a reality where buyers, suppliers, carriers and other supply chain partners all share data across one secure platform. But realistic applications for blockchain will soon be realized, with many experts predicting widespread adoption within five years. Smart contracts are one blockchain application gaining traction, with the potential to offer immediate rewards. Blockchain allows companies to create smart contracts based on programmable business logic, which
can execute themselves autonomously and thereby save time and money by reducing friction and intermediaries. In this format, traditional contracts are converted into computer code to form a digital agreement that is stored, replicated and supervised by the network of computers that run on the blockchain. The self-executing, digital contracts allow the chain to essentially hold funds in escrow until both parties meet their obligations.
WHY SMART CONTRACTS? A Beginner’s Guide to Smart Contracts by Blockgeeks, an online blockchain training technology educational platform, offers a list of numerous smart contract benefits, which include:
TRUST—Your documents are encrypted on a shared ledger. There’s no way that someone can say they lost it.
AUTONOMY—You’re the one making the agreement; there’s no need to rely on a broker, lawyer or other intermediaries to confirm. Incidentally, this also knocks out the danger of manipulation by a third party since execution is managed automatically by the network, rather than by one or more, possibly biased, individuals who may err.
BACKUP—Imagine if your bank lost your savings account. On the blockchain, each and every one of your friends has your back. Your documents are duplicated many times over.
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SUPPLY & DEMAND CHAIN EXECUTIVE | September 2018 | SDCExec.com
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