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Block Chain Technology’s Potential Use in Supply Chain Management
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Arabian Journal of Business and Management Review

ISSN: 2223-5833

Open Access

Brief Report - (2022) Volume 12, Issue 5

Block Chain Technology’s Potential Use in Supply Chain Management

Matthias Kopyto*
*Correspondence: Matthias Kopyto, Department of Supply Chain Management, Friedrich-Alexander University Nuremberg, Lange Gasse 22, Nuremberg, Germany, Email:
Department of Supply Chain Management, Friedrich-Alexander University Nuremberg, Lange Gasse 22, Nuremberg, Germany

Received: 01-May-2022, Manuscript No. jbmr-22-67903; Editor assigned: 03-May-2022, Pre QC No. P-67903; Reviewed: 14-May-2022, QC No. Q-67903; Revised: 20-May-2022, Manuscript No. R-67903; Published: 25-May-2022 , DOI: 10.37421/2223-5833.2022.12.445
Citation: Kopyto, Matthias. “Block Chain Technology’s Potential Use in Supply Chain Management.” Arabian J Bus Manag Review 12 (2022): 445.
Copyright: © 2022 Kopyto M. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Introduction

Block chain, the system designed to facilitate bit coin transactions, is to blame this time. Block chain technology, in the opinion of its proponents, notably in the financial industry, has the power to drastically increase the productivity and profitability of the majority of firms, if not all of them-or perhaps to completely transform the way we do business. These early adopters assert that companies that disregard block chain technology do so at their peril. However, the goal of supply chain management is to improve security, guarantee contract compliance, and cut costs while enabling a certain number of well-known partners to interact with one another directly. A variety of transaction-related data is "tokenized" by supply chain block chains instead of actual currencies, producing distinctive and easily verifiable identifiers for purchase orders, inventory units, bills of lading, etc. However, how real are these powerful words? Does the supply chain industry actually use block chain technology? Can it boost your profitability and resolve your supply-chain issues? Supply-chain executives have asked us a number of very practical questions. Our objectives are to help you comprehend the fundamentals of block chain technology and to save you the time-consuming process of learning, experimenting, and evaluating its applicability to your business [1-3].

In the field of supply chain management, block chain technology has recently garnered prominence as a potential solution. For instance, Maersk tracked its containers effectively over the world using an IBM block chain system. Customers can access information about the harvesting, pressing, and bottling dates and conditions, among many other specifics, for each bottle or case of wine thanks to a block chain-based solution that was developed by Ernst and Young's EZ Lab and the Catina Volpone vineyard in Puglia, Ital. Similar to this, Wal-Mart and IBM have successfully developed a block chainbased system for tracking pig products in China using a farm-to-table strategy, offering transparency and comprehensive information about every stage of the supply chain.

Description

The block chain’s organisational structure is set up to guarantee the security and transparency of SCs. The following is an explanation of the underlying mechanism of a typical block chain system. A consensus-based scientific algorithm generates a hash number (256 bit) for each block in the block chain. A secure and independent chain is made by connecting the blocks with references to the hash of the previous block. Blocks must first be authenticated before being added to the block chain, which can be done through "block chain mining," a type of proof-of-work process. Blocks are added to the network's auditable and immutable block chain after being validated. Additionally, a defence mechanism is pre-installed. Specifically, any corruption that is our effort intends to incorporate all of the research on the applications, integration, and implementation of block chain technology in SCs and logistics that has been published as articles, articles in press, review papers, and brief surveys. Using a methodical literature searching approach, it aims to extract the relevant information from the vast body of literature that is already available. It opens the door for further study and reveals the present trends of block chain in SC operations. The scope of this work is specific to SCs, as a note. Since 2017, there has been a huge increase in the pace of research in this field.

Data source module: It aids in the "distributed and shared databases"' creation of the block chain. It guarantees that the data that block chain users retrieve is accurate and undamaged. The main characteristics of block chain are data immutability, tamper-proofed storage with any form, and shareable data ledger through the "Application Programming Interface (API)". The "travel of a transaction on block chain" is monitored, managed, enabled, and supported by the transaction module. It facilitates inclusion to the block chain and helps validate transactions. Data transport occurs through smart contracts transaction gates. The block chain is what constitutes the information flow throughout the SC along with shared visibility of transactions. A block containing all of the transactions is sent to every node. Keep in mind that transactions only happen once [4,5].

Conclusion

The block chain’s "distributed and shared databases" are created with the help of the data source module. It ensures the integrity and accuracy of the data that block chain user’s access. Data immutability, tamper-proof storage in any format, and a shared data ledger via an "Application Programming Interface (API)" are the three main features of block chain technology. The transaction module oversees controls, facilitates, and supports the "journey of a transaction on block chain." It simplifies block chain incorporation and aids in transaction validation. Smart contracts transaction gates allow for the transfer of data. The SC's information flow and shared visibility of transactions are both made possible by the block chain. Each node receives a block containing all of the transactions. Remember that transactions only take place once.

Conflict of Interest

None.

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