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The CEO and co-founder of the digital billing company Tradeshift has stated that blockchain has great potential to make supply chains cheaper and more efficient. However, Christian Lanng also believes that the technology is too immature and is not able to scale sufficiently for the current role.
Blockchain must scale before finding global use in supply chains
Lanng spoke to the CNBC at the World Economic Forum earlier today. At the event held in Tianjin, China, the CEO and co-founder of Tradeshift stated that blockchain is a great technology to demonstrate the authenticity of the assets, along with their point of origin and to other details.
can control the goods at different stages of the supply chain using innovation at the Bitcoin base. However, in addition to being excessively expensive, for now, Lanng added:
"The problem is that it's not a high-performance technology."
As he spoke with the publication, Lanng went on to say that the current supply chains were not currently designed with a view to change. He then commented that it is important for companies to digitize their supply chains to respond to changes more efficiently. One such technology that is capable of such digitalization is blockchain. However, Lanng is also cautious about the amount of hype surrounding innovative technology:
"Whenever people say blockchain, I think what they are saying is that they would like to connect things digitally … I do not think blockchain is a mature technology still to be brought forward … I also want to be a little cautious for a bit of hype. "
In addition to its financial applications in cryptocurrencies like Bitcoin, many believe that blockchain technology could be particularly useful for increasing efficiency and cutting intermediaries in supply chains. Several companies and organizations are already evaluating ways to apply the technology to their existing services. These include the U.K. food standards agency. and the global logistics company UPS. However, according to the investigations cited by the CNBC, the generalized adoption of the technology could take up to 10 years.
In reasoning about his position, Lanng used Ethereum's blockchain as an example. He said that seven transactions per second are not sufficient to allow the use of technology in global supply chains. He went on to highlight the inability of developers to scale a blockchain and the technical issues faced in their construction to begin with:
"When you run a global supply chain, you have (thousands) transactions per second. for identity, I think for certifications and things like that, blockchain is useful … For the main transactional scenarios, it's not ready yet, it's too expensive and it's very complicated to build and scale. "
Close-up image of Shutterstock .
