Blockchain "It is not a high-performance technology"
Blockchain and similar decentralized applications have long been publicized as the future of many, if not all industries and, later, of the future of how humans live. But according to Christian Lanng, CEO and co-founder of Tradeshift, blockchains are not yet ready to hit the streets, if possible, especially in markets that affect supply chain management significantly.
In an interview with CNBC at the World Economic Forum in China, Lanng explained that supply chains often involve many stakeholders, with the consequent involvement of complex logistics management, because all the points of a chain of supply must be verified and authentic.  And while the blockchains "are a great technology to handle this kind of flow and [to] insureds of integrity", the CEO stressed that "it simply is not a high-performance technology". Not only that, but the manager of the digital billing startup has drawn attention to the fact that blockchain systems are not cheap, or at least in their current state. Explaining his latest concern, Lanng added that the existing supply chains, which are essential for the 21st century economy, were not built for large-scale changes and alterations.
But all hope is not lost, as a transition from paper digital hybrids to fully digitized supply chains will allow companies to "react quickly to changes." Furthermore, many experts believe that the main use of blockchain is probably supply chain management and similar data-centric applications.
Dan Reitzik, CEO of DMG, a Canadian startup focused on the crypt / blockchain, said that supply chain management is "the perfect use" of the blockchain
. Interestingly, the comments a little pessimistic The sentiment of executive tradeshift mirror held by the decentralized technology leader at PricewaterhouseCoopers, who recently stated in an interview with Bloomberg that companies are going through a difficult time implementing systems and "large-scale" blockchain-based solutions.
Explaining this point in depth, Grainne Mcnamara, the aforementioned leader of the PWC, raised for the first time the idea that the Blockchain is undoubtedly a promising technology, the companies they are finding it difficult to find enterprise solutions in a way that will reach 0% ROI over time and / or that will attract a large customer base.
But many forget to remember that this sector is nascent, to put it lightly, and this technology is still gaining ground with companies, individuals and governments all over the world.
Back to the question in hand.
Taking a step back from supply chains for a second, the innovator explained that this early stage technology still shows many promises in areas such as certification and verification of identity. More specifically, as reported directly from the horse's mouth, Laang said:
When you run a global supply chain, you have (thousands) of transactions per second. So, I think by identity, I think for certifications and things like that, blockchain is useful.
Photo of Juliana Kozoski on Unsplash