Blockchain provides transparency, immutability and lifetime history of related transactions allowing full traceability across the value chain. “Blockchain as strategy for addressing traceability across the value chain” is a post on the value proposition of this technology. In my other post titled “Blockchain Overview – Collaboration In a Trusted Manner“, I went over its basic concept.
Blockchain as strategy for addressing traceability across the value chain
Blockchain helps solve core issues in the industry. CNBC program American Greed broadcasted an episode titled “Could the wine you buy be part of a fraud scheme?” This episode highlighted two core issues: fraud and lack of traceability across the value chain. The episode is about a man who ran a Ponzi scheme selling rare pre-arrival wine (bottled wine but not shipped) that is not his to sell. In other cases, he was re-selling the same pre-arrival wine to multiple investors. He was eventually tracked and put in jail for fraud.
He was able to deceive the investors because a trusted, untampered ledger that provides the transaction history of the asset did not exist.
Blockchain provides a shared and distributed ledger that is replicated across all investors on the business network. It also provides “Consensus” which leads to trust that merchants on the business network as being trustworthy with a good track record. “Provenance” provides complete records and transparency on who owned the pre-arrival wine throughout its lifecycle. Blockchain “Immutability” makes it impossible for anyone to tamper with the ledger. And “Finality” provides a trusted system of record across the business network.
Blockchain for this use case brings a lot of value in the prevention of fraud. It protects both the industry and the consumer.
About the Author
Sami Joueidi holds a Masters degree in Electrical Engineering. He is currently residing in South Florida and working for a fortune 500 company as the Cloud and Cognitive leader & Chief Architect for the Federal business unit. He is also the Blockchain leader for the division. His role is to guide customers on adapting the appropriate cloud strategy for their enterprises. He also guides them on how to incorporate cognitive capabilities and leverage the latest technology trends to innovate.
© Sami Joueidi and www.cafesami.com, 2017. Excerpts and links may be used, provided that full and clear credit is given to Sami Joueidi and www.cafesami.com with appropriate and specific direction to the original content.