The challenges that the manufacturing industry face today are many and varied. One such problem is limited access to information about the location and condition of products – and that’s only scratching the surface.
Data maximization and transparency are also emerging as big hurdles that manufacturers must overcome. This is where blockchain comes in. Blockchain is revolutionizing the way businesses handle complex data interpretations, and this can be beneficial for both manufacturers and their clients.
In fact, the tech community is currently formulating new ways to integrate blockchain into other processes. But what can it do to address the current problems that manufacturers are facing?
The Capabilities of Blockchain
According to Investopedia, blockchain is “a digitized, decentralized public ledger of all cryptocurrency transactions.” But beyond this, the technology is capable of streamlined data processes that help your company and services like ours.
The digital ledger allows for maximum security on your transactional data. But the biggest advantage of blockchain technology is its ability to improve transparency. Because the system validates new entries and makes each data entry incorruptible, it prevents any alteration of information.
Addressing Today’s Manufacturing Challenges
The many benefits of blockchain technology are applicable across different manufacturers, and that spells success for the industries they serve, in a time when many manufacturing challenges exist.
Effectively maximizing available data is one of these challenges. With valuable data coming in bundles, manufacturers and logistics experts have to extract the industry-specific aspects of data and convert it into actionable insights. This is problematic because it impedes their front-end processes as they focus their resources on data conversion.
Enter blockchain. With its traceability feature, the unmodifiable transactional data logged in the blockchain becomes available for every party involved in the transaction to trace back components and products from the beginning of the supply chain down to its end. This drastically eases data conversion as the data stays untouched and accurate. The process also gives insight into the logistics process, with available data from the deployment of products/components down to its current state.
Blockchain technology also synchronizes all data across the network into one platform. This eliminates the need for an intermediary; thus, removing time-consuming processes like cross-checking and follow-ups, which then cuts on labor costs, too.
Blockchain technology develops smart contracts as well. These digital programs directly send and refund assets whenever a transaction reaches a particular milestone. Adding this to blockchain’s data validation feature ensures transparency in every step of the manufacturing process, benefitting the manufacturer and clients.
The Future of Blockchain in Manufacturing
The future holds a long list of potential applications for blockchain in manufacturing and supply chain management.
Experts predict that the first market-ready blockchain solutions will emerge in the next three to five years, giving companies and their partner manufacturers alike a fully automated ledger that almost eliminates any human intervention, paving the way for a trustworthy business partnership.
Projections also see blockchain being integrated into 3D printing to create a new, streamlined manufacturing process. With the technology transferring untouched data into a verified 3D printer, accurate printing of products such as electronic devices and even aircrafts becomes achievable.
Blockchain continues to revolutionize industrial processes while reducing the challenges that modern manufacturers face. We make sure that we get over those hurdles so that we can continue to provide you with high-quality services, from assembly and testing and inspection to manufacturing and reworking.
For high-quality, custom manufacturing needs, contact Alazo Electronics today.