The 7 Benefits of Blockchain in Cold Chain

● Additional Transparency

● Increased Efficiency

● Enhanced Security

● Improved Quality Control

● Real Time Data Access

● Dispute Resolution

● Shared and Secure Data

2.1 Increased Efficiency

Blockchain simplifies auditing and compliance procedures, which are crucial in the cold chain industry to ensure product quality and safety. Traditional audits involve extensive documentation and manual verification yet with blockchain (due to its immutability), auditors can access a secure and complete record of all relevant activities. This reduced the time and resources required to audit and boosts efficiency.

2.2 Enhanced Security

When using a traditional system, when one database is breached, all the data is compromised. Blockchain relies on decentralisation and consensus mechanisms (where multiple participants agree on the validity of the data entered). In order to breach a blockchain, an attacker would have to compromise many computers around the world simultaneously – which is highly improbable. This is key for cold chain companies as data recorded from transportation can be fully trusted.

2.3 Transparency

A record of transactions can be seen by anyone who has permission to access the blockchain network, which can be managed if a hybrid or private network is used. For those working with a supply chain, the record of product movement can be viewed from its origin to its final destination. This is key for both ease of communication, and accountability.

2.4 Improved Quality Control

The technology provides a platform upon which data can be shared safely among various stakeholders in a supply chain. While in some cases, each participant may maintain separate records, with blockchain all relevant parties have access to the same information in real-time. This transparency can foster a common understanding of a product's journey and facilitate better collaboration.

2.5 Dispute Resolution

Disputes can arise from conflicting records. With blockchain, a single source of truth exists that all parties agree upon. A blockchain's transparent history can quickly identify where and when the issue originated, facilitating resolution and minimising disagreements.

2.6 Shared and Secure Data

Blockchain can be used as a middleman for data sharing through smart contracts. These contracts can be programmed to execute only if conditions for data sharing are met by both parties. Sharing secured data can be beneficial to furthering the development of the industry.

2.7 Real Time Data Access

Temperature sensitive products are highly susceptible to quality deterioration due to many factors. With blockchain technology, data recorders such as temperature logs and GPS trackers can be uploaded to the chain in real-time. Enabling suppliers to recognise and react to problems quickly and effectively.