Blockchain technology has the potential to transform global supply chains and improve the speed and safety of cross-border flows of goods, but how that will happen is uncertain, according to a new us study.

American wei-dong shi an associate professor of computer science at the university of Houston, Texas a&m university, manufacturing and logistics innovation project director Mr Ruffle plug rios, subfamily wu (Eleftherios Iakovou) and others in the new study the global supply chain and chain blocks in cross-border trade: to advanced technology, challenges and opportunities of critical review, chain block technology to the potential impact from the international flow of goods, and new opportunities, and reveals the private sector and government agencies have to bridge the gap between.

According to the study, the use of blockchain technology to track the movement of goods around the world could benefit both relevant industries and government agencies responsible for monitoring the safety of incoming goods. Such technology allows goods to move through customs faster and focus customs resources on a small number of goods that require further inspection. The study focuses on six "pain points" in the global supply chain -- traceability, dispute resolution, cargo integrity and security, supply chain digitization, compliance, trust and stakeholder management, and the key challenges of widespread use of blockchain technology.

The application of blockchain technology in the global supply chain market is still in its infancy, said shi. According to industry experts, it may take six years for blockchain technology to be widely used. One of the challenges is deciding which blockchain technology should be used, which will depend on different industries and require building common standards and enforceable laws and regulations. Widespread use of blockchain technology also requires companies to share some of their data with competitors and with governments of countries where goods pass, but doing so can bring huge benefits, such as increased ability to verify the origin and flow routes of goods, and resolve disputes related to counterfeit goods. Blockchain technology could also reduce corruption because everyone in the supply chain will have copies of the data they can add to, but not modify.

Despite the challenges, attitudes toward blockchain technology are changing rapidly, researchers say.

Source: China social science network