How will Blockchain and NFTs Change the Manufacturing Industry?

What is the blockchain?

Blockchain is essentially a decentralized, unhackable database where everyone has a copy of the same database. There's no middle man whatsoever. It is set up to keep track of almost everything of value, not just financial transactions like Bitcoin.

‍Blockchain in the Manufacturing Industry

Blockchain technologies have the potential to drastically alter the manufacturing landscape.

The business sector with the most organizations fully ingesting blockchain into their workflows in manufacturing, with three times the market share of consumer products in the retail industry.

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Blockchain offers a quick and secure exchange of information and funds between suppliers and manufacturers. This allows them to cut out third-party middlemen such as banks or exchange platforms. 

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It also creates a real-time log of activity for every step of the supply chain process. This increases the traceability and allows the manufacturer to see where there may be areas of inefficiency.

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For example, if a supplier of raw lumber is consistently late on its delivery to a furniture manufacturer, the manufacturer would be able to use this activity log created through blockchain tracking to see what area of distribution may be causing the slowdown. 

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The faster the raw materials can get to manufacturers, the faster finished goods can be produced, sold, and converted into cash.

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Blockchain Technology in Smart Manufacturing Contracts

Blockchain can also be used to transfer funds and orders between OEMs and manufacturers. Instead of having a human manually pay an invoice after a shipment is received or created, or create an inventory when it falls below a certain level, Blockchain technology can be used to set up smart manufacturing contracts. 

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After a proof of delivery or bill of sale, these tasks can be done automatically, without the need for a middleman like a bank to hold the money or information in one place.

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Raw materials can be converted to cash more quickly and efficiently, which helps a company's bottom line. Due to the fact that blockchain can't be changed, both sides of a transaction can be sure that their money and information are safe.

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Impact of Blockchain Application in the Manufacturing Industry

Implementation of blockchain application in manufacturing industry is still in the early adopter phase of the technology adoption lifecycle, and we are seeing incredible opportunities for the future of this technology.

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As blockchain  in manufacturing supply chain evolves into a mature product, there will be the opportunity for a new kind of traceability both up and down the supply chain. 

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With the public ledger, all segments of the manufacturing process can be part of the product management pipeline.

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The fair trade foundation thinks that people who are skeptical about how blockchain works right now have the same chance to learn about goods and services as the distributors and manufacturers who work with them.

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Not only can blockchain be used inside a company, but it can also provide opportunities for cross-industry standardization of accounting and tracking, creating a new level of transparency. 

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And with the increasing value of technology, it is expected to be worth at least 3.1 trillion dollars in 2030.Many more people will enter this market with their own skills and knowledge, which will help this technology improve over time and become a more useful product. Read More