To many, the word ‘blockchain’ still means ‘Bitcoin’ or ‘cryptocurrency.’ Cryptocurrency is a digital monetary token that, in most cases, isn’t backed by a physical asset. Yet where blockchain excels is in tracking of physical assets.
This is why many companies – such as Walmart – are implementing blockchain in their global supply chains.
Here’s why blockchain is perfect for tracking physical assets.
What makes blockchain different
Three things set blockchain-backed platforms apart from traditional tracking software. These are:
- Its transparency
- Its immutability
- Its security
While some traditional software may claim to be secure, blockchain’s security goes much further. This is because it is a distributed ledger. Blockchains “store data using sophisticated math and innovative software rules that are extremely difficult for attackers to manipulate.”
While blockchains aren’t impenetrable (since no technology is), they provide much better protection and peace-of-mind to companies. Especially those who are still using manual, paper-based tracking.
Blockchain technology is also immutable. This means that data cannot be changed or deleted without notifying key users. This adds a level of transparency. Those users with the ability to do so can see any data added, changed or deleted.
The physical asset
Blockchain can excel in helping to track any physical asset. This includes:
- Fruit and vegetables
- Gold and silver bullion, or any other precious metal
- Company fuel
And many more.
While there have been some questions of blockchain’s overall security, usually these are attributed to the blockchains being public. When it comes to tracking assets, many companies will use private blockchains, which adds another level of security. These are more resistant to hacking or compromise from external sources.
Physical assets are especially vulnerable to fraud and compromise. Blockhead Technologies have created STAMP Supply and STAMP Fuel, designed to track assets throughout the supply chain.
STAMP Supply tracks any asset through the supply chain with blockchain-backed data tracking. STAMP Fuel tracks fuel, mitigating loss, which is a major problem in many fleet companies. This is especially relevant to the mining sector.
Blockchain, integrated with data tracking platforms, has massive potential for global companies in both ESG, fraud prevention and cost saving. You can find out more about STAMP Fuel here or STAMP Supply here. You can also contact us here or at [email protected] for more information or a demo.