When IoT and blockchain work together, they can provide access to unprecedented amounts of information.
Take the example of a restaurant serving up burgers that seem to have something “off” about them. Pinpointing the problem can be a monumental task, with each part of the burger coming from its own lengthy supply chain going all the way back to the farm, including the beef itself, the bun, cheese, condiments and any vegetables that are on it. It should come as no surprise, therefore, that the server, restaurant, and suppliers probably have little idea where things went wrong. Perhaps the meat was kept at too high of a temperature or one of the spices in the sauce sat for too long in the warehouse. With supply chains being silo-ed, it’s really anybody’s guess.
However, the Internet of Things and blockchain can actually work together to create permanent records of each product’s journey through its supply chain, and these records are also highly shareable.
IoT Gaining in Popularity
With sensors being placed everywhere from trucks and pallets to produce, there is now the potential for monitoring things like location, moisture, temperature and vibration.
The IDC is projecting that 30 billion IoT devices will be used by the year 2020, and that figure is expected to further skyrocket to 80 billion by 2025. It is blockchain, however, that will help this IoT data really make an impact on the supply chain, with different companies easily able to view information. Perhaps most importantly, no one can change the information once it’s in the blockchain, which should keep misrepresentation and fraud to a minimum. This type of system is already being developed for applications such as tracking diamonds all the way from mine to buyer and tracking tuna to ensure it was caught sustainably.
As this combination of technology comes of age, business networks will evolve into self-governing and highly efficient business networks.
This blog post was based off of an article from Venture Beat. View the original here.