Blockchain has immense potential and hence can contribute to all forms of industries including building a new manufacturing business model. According to reports, the business value-add of this technology will grow beyond $176B by 2025 and will exceed $3.1T by next five years.
The product traceability will improve manifold with blockchain technology and IoT and blockchain will together bring a revolution in the field of product safety, warranty management, track-and-traceability, Maintenance, Repair & Overhaul (MRO), and lead to new usage-based models for connected, smart products. The report by Gartner indicated that by 2023, 30% of all the manufacturing companies having more than $5B in revenue will have already implemented Industry 4.0 pilot projects that use blockchain.
As per the study, the greatest potential of blockchain lies in its ability to deliver business value in manufacturing. It can increase visibility across all the areas of manufacturing from suppliers, strategic sourcing, supplier quality, procurement to shop floor operations such as machine-level monitoring and service.
Thus, blockchain has the potential to enable a completely new manufacturing business model. Supply chains form the major part of every manufacturing business and are capable of using distributed ledger structure of blockchain as well as a block-based approach for aggregating the value-exchange transactions for improving the efficiency in supply chain, Forbes reported.
Blockchain can contribute to the formation of building a new manufacturing model for business by improving product quality, supplier order accuracy, helping manufacturers meet delivery dates, trace-and-traceability and thus sell more. Another research conducted by the technology research company ReportLinker says that uncertain regulatory landscape and lack of a uniform set of standards are holding the growth of blockchain technology in the market of manufacturing.
ReportLinker said that there are several reasons that will enable the formation of a new manufacturing business model in the years to come through blockchain technology. According to Cointelegraph, some such few reasons include blockchain-as-a-service (Baas) solutions for business, Initial Coin Offerings (ICO), and a significant increase in venture capital investment.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]