Blockchain technology was born in the midst of the financial crisis and proposed as a means of reliably transferring a store of value without using a bank or other financial intermediary. Bitcoin was the first such blockchain token, and multiple cryptocurrencies have followed. But blockchain use cases extend far beyond the financial world, and some of the more creative uses of blockchain technology have emerged in the supply chain.
The numerous benefits of blockchain to monitor supply chain activities includes mitigation of compliance risk. There are features of blockchain technology that are well-suited to address some of the more persistent problems in supply chain management that typically stem from lack of visibility into product origin, product transformation, and product movement. By tracking product in the supply chain, companies can mitigate their risk of legal liability around responsible sourcing, sanctions, customs, and other import regulations – among many others.