Blockchain has been heralded as a cutting-edge technology that will improve the contemporary supply chain structure by increasing supply chain trust, efficiency, and transparency. However, as promising as blockchain technology is, blockchain is not a panacea for supply chain issues. There are numerous pros and cons of using blockchain in the supply chain:
Trust. Because data on the blockchain is decentralized and immutable, members of the supply chain can trust the data they see on the blockchain. Conversely, a traditional supply chain data storage structure typically requires all members of the supply chain to keep their own records, and therefore disputes arise when those records do not match up.
While blockchain technology can potentially provide huge advantages to supply chains, there are also potential disadvantages that make it clear that any blockchain solution must be well-tailored to the targeted supply chain.
1 Editing the Uneditable, Accenture, https://www.accenture.com/us-en/insight-editing-uneditable-blockchain (last retrieved July 20, 2021).
2Accenture Breaks Blockchain Taboo with Editing System, Reuters (September 20, 2016), https://www.reuters.com/article/us-tech-blockchain-accenture/accenture-breaks-blockchain-taboo-with-editing-system-idUSKCN11Q1S2.