“Like many other industries, blockchain holds the potential to disrupt the chemical sector altogether”
Blockchain is sure to bring about a value-driven approach in the chemical industry across the globe. It would bring together efficient data sharing between partners, suppliers, manufacturers, and consumers.
Chemical industries today can leverage the full potential of blockchain and bring about high-value change, making the system reliable and trustworthy, alongside making it secure like never before.
Identifying the issues and applying blockchain for the elimination of those issues, is the need of the hour. Blockchain has the potential to resolve problems on majorly all the scales, in the system. Hence a smart use of blockchain can help the industry grow at the best pace.
Some of the major issues in the chemical sector in the conventional system:
The lack of source information makes it difficult to prove the ownership, in the conventional system.
Product integrity issues:
The lack of trust and low system transparency can create product integrity issues at many levels.
Low supply chain visibility:
Supply chain tracking and execution should be quick and transparent, which isn’t the case in the conventional system.
The involvement of third parties in the centralized system and storage of chemicals involves huge overall overheads and inventory costs.
Managing non-essential middlemen involves a lot of costs and makes the system expensive affecting the cost of processes as well.
Partners involved in the blockchain network for the chemical industry:
Without the involvement of the intermediaries, smart contracts make the requisite changes to the distributed ledger, and the information is stored on the blocks after the consent of all the parties involved, and the data block becomes immutable.
A lot of overheads can be saved, which otherwise are invested in offline contracts and negotiations.
The partners involved in the blockchain network for the chemical industry include chemical factories/manufacturers, suppliers, retailers, consumers, dealers, distributors, consultants, supply chain companies, and other relevant companies. Smart contracts enable the best mergers to reap the best of benefits that the blockchain brings to the table.
How Blockchain can help overcome the issues and improvise the system:
Blockchain promises not just improved data mining but enhanced data stability. The data involved, not just in the R&D but also in the manufacturing processes of the chemical industry is of high value and highly vulnerable too. Hence data stability and integrity become very crucial.
Decentralized, and authority independent systems are what blockchain aims at. This helps in cost-cutting and time-saving mechanisms at various levels. Thus making the system highly reliable and secure.
Supply chain organization:
Organized and traceable supply chain management is of high value when it comes to the chemical industry. It also almost reduces the chances of malfunctioning to zero, due to its high traceability features.
Corruption free processes:
Counterfeiting of chemicals and corruption in various processes would be reduced to a large extent once the system becomes transparent. This can be achieved with the help of integrating blockchain within the conventional system.
Not just making the system faster and transparent to work with, but blockchain also creates a value-driven framework, rather than just a technology drive mechanism, for the chemical industry. Thus bringing a bright future in the nearing time.