top of page

Are Blockchains for supply chain still worth your investments ?

Updated: Jan 23, 2023

Blockchain technology have always had the potential to revolutionize supply chain management by providing a secure, transparent, and efficient way to track and verify the movement of goods from one point to another. However, implementing a blockchain-based supply chain system can be challenging for several reasons. First, there is the issue of scalability. Supply chains involve a large number of participants, each of whom must be able to access and update the blockchain in real time. This requires a high level of processing power and bandwidth, which can be difficult to achieve with current blockchain technology. Another challenge is the need for standardized protocols and data formats. In order for a blockchain-based supply chain system to be effective, all participants must agree on a common set of rules and standards for tracking and recording transactions. This can be difficult to achieve, as different organizations may have different systems and processes in place. Additionally, there are concerns about the security of blockchain-based supply chain systems. Because they rely on decentralized networks of computers, they are vulnerable to attacks by hackers who could potentially alter or manipulate the data on the blockchain. Finally, there is the issue of cost. Implementing a blockchain-based supply chain system requires significant upfront investment in technology and infrastructure, and there may be ongoing costs associated with maintaining and updating the system. This can be a barrier for smaller organizations, who may not have the resources to invest in such a system. Gartner prediction in 2019 : “Supply chain blockchain projects have mostly focused on verifying authenticity, improving traceability and visibility, and improving transactional trust,” said Alex Pradhan, senior principal research analyst at Gartner. “However, most have remained pilot projects due to a combination of technology immaturity, lack of standards, overly ambitious scope and a misunderstanding of how blockchain could, or should, actually help the supply chain. Inevitably, this is causing the market to experience blockchain fatigue.”

A few example of project that lacked traction (most some sort of semi-centralized chains) or that simply gave up :

  • Vechain (Centralized and nothing more than a few pilots launch few years ago , still no great traction on the public chain) ,

  • Ambrosus (Project completely gave up and change its business model )

  • Walton Chain (Pivoted in hardware and mining systems)

We are very skeptical at this point for the potential success of supply chain management applications on public blockchains . However there's a possibility for consortium chains to succeed , which defeats the original purpose of blockchain : trustless systems.

For instance Salesforce has developed a blockchain platform called Salesforce Blockchain that allows businesses to produce and emplace decentralized operations for force chain operation. The platform is grounded on the Hyperledger Sawtooth blockchain and enables businesses to track the movement of goods and materials through their force chain, as well as to securely and transparently share information with partners and suppliers. Salesforce Blockchain also allows for the creation of smart contracts that can automatically execute business reasoning and tr

ansactions based on predefined rules. This can help to enhance the efficiency and transparency of force chain operations, and can also help to reduce the threat of fraud and crimes. We do not have enough information whether there's enough traction for Force chain.

Please reach out social media if you think some information should be amended.

25 views0 comments

Recent Posts

See All


bottom of page