The global supply chain might be completely changed by blockchain technology, which would also increase the speed and security of managing the flow of commodities across borders. Big doubts, however, regarding how the shift will proceed, according to academics, still persist. “This is a developing technology. It is changing, remarked Weidong. “Larry” Shi is a co-author of a study on the topic together with engineers Yanling Chang and Eleftherios Iakovou from Texas A&M University and an associate professor of computer science at the University of Houston. The report, which was published in the International Journal of Production research, investigates the potential disruption and promise of blockchain to improve the security of the international movement of commodities and highlights gaps between private business and governmental organizations that need to be addressed. The Borders, Trade, and Immigration Institute, a Department of Homeland Security Center of Excellence run by the University of Houston, provided funding for the project.
The research, according to Shi, points to the potential advantages of using block chain to trace the flow of commodities throughout the world for business and the organizations in charge of guaranteeing the security of cargo entering the United States. “It could move things through customs more quickly, and it would let customs concentrate its resources on the minority of cargo that needs closer inspection,” he said. The researchers concentrated on six supply chain “pain points” traceability, dispute resolution, cargo integrity and security, supply chain digitization, compliance, and trust and stakeholder management as well as major barriers to wider adoption in their report. “The widespread adoption of block chain technology in the global SC (supply chain) market is still in its infancy,” they said. According to industry analysts, it could take roughly six years for block chain to become widely used. Shi listed several obstacles, including the requirement for shared standards, appropriate rules and regulations, and decisions regarding which block chain technology should be employed, which he expects will be made industry-by-industry.
Businesses will also need to share certain information with their rivals and the governments of the nations through which the commodities move in order for the technology to be widely used. However, there may be many benefits, like reducing worries about fake goods and making it easier to determine where items originate from and how they got to their final destination. Shi asserted that block chain will lower fraud. It is impossible to alter the data. There are copies for everyone (in the supply chain). However, you can only add new information. Though there are obstacles, opinions are shifting quickly. Block chain wasn’t widely known three years ago, according to Shi. “They believed it to be bitcoin. They now recognize that it is a technology. Shi, one of the researchers who collaborates with both business and the federal government, reported that there was a lot of enthusiasm among business leaders, including several block chain technology test projects. But he stressed that any solution must take into account the requirements and obligations of U.S. Customs and Border Protection in order to achieve the objective of preleasing the majority of cargo before it enters a port. “It’s a better way to share data, and it gives us a better picture of what’s happening.”
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