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5 Ways Blockchain Can Revolutionize the Manufacturing Industry

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Kiara Miller


Every nation’s manufacturing industry is one of the most vital economic sectors. Regarding Canada specifically, as per Financial Post, manufacturing accounts for about 10 percent of the country’s GDP. Scalability in a country’s manufacturing industry implies more significant economic growth for the country. The more the manufacturing industry in a government grows, the greater the overall economic prosperity will be.

Stellar technological innovations and the global manufacturing industry have become more scalable.

With the integration of state-of-the-art technologies, the manufacturing sector is growing by leaps and bounds. In addition, we are witnessing a massive digital revolution transforming the world’s ways in unimaginable ways.

While a wide range of technologies is driving transformations in the manufacturing sector, blockchain technologies are disrupting the industry with the most significant momentum. The charm and prowess of blockchain technology do not limit themselves to cryptocurrencies.

Blockchain technologies indeed have the potential to transform major economic sectors completely

Blockchain technologies indeed have the potential to transform major economic sectors, including the manufacturing industry, completely. This explains why many manufacturing businesses are now subscribing to blockchain solutions.

As per Globe Newswire, the global market for blockchain in manufacturing is projected to grow at a whopping CAGR of 66.4 percent between 2022 and 2027. The market for blockchain solutions in manufacturing is anticipated to reach a net worth of USD 17047.8 million by 2027. This indicates that businesses see great scope in blockchain technology to add greater value and efficiency to manufacturing operations.

This blog looks at the most significant advantages of blockchain technologies for the manufacturing industry. In other words, this blog sheds light on how blockchain technologies can revolutionize the manufacturing sector.

Five incredible merits of blockchain for the manufacturing industry

1. Improved and improvised traceability

In manufacturing, traceability is essential at each stage of the manufacturing process. Better traceability facilitates more significant streamlining of operations and better coordination between teams. To explain, with blockchain systems in place, manufacturers can keep a systematic track of all data about materials, processes, and finished goods.

Since blockchain is a decentralized ledger, manufacturers can effectively store and share information regarding the origin of materials, shipping status, compliance measures followed, and other details. In this way, businesses can trace all the assets and goods systematically and simply using the blockchain ledger.

Besides, with greater traceability, the sales team can also answer customers’ queries about sustainable practices, animal testing, or other concerns more organized manner. The fact is that greater traceability further paves the way for greater transparency. When there is greater transparency in the course of operations, employee engagement is high, and customer experiences can be enhanced.

We must acknowledge the fact that modern customers love transparency from brands. Therefore, the kind of traceability and transparency blockchain ledgers can provide is priceless for manufacturers. In this way, they can optimize their employees’ experience and customer service dynamics.

Moreover, in the case of product recalls too, effective traceability will have such a crucial role to play. The product recall process in the case of defects or refinements will be relatively simpler when data is stored on a ledger.

2. Optimized inventory management

Supply chain operations and inventory management form the spine of the manufacturing industry. Therefore, any inefficiencies in the supply chain and inventory operations can derail the entire range of manufacturing operations. It is essential for manufacturers to have regular insights into their supply chain operations.

This is where blockchain solutions are proving to be game-changing for manufacturers. With blockchain ledgers, manufacturers can track the supplies throughout all manufacturing stages. Furthermore, with this ability to track supplies and processed goods in real-time, manufacturers can provide clear commitments about delivery to their customers.

To add, given the decentralization feature of blockchain, manufacturers can share this vital information with their supply chain partners and managers for better coordination.

Furthermore, with blockchain technologies, manufacturers can also trace the source of defective supplies or materials that do not comply with their quality assurance standards. Businesses can easily trace all the risks and inefficiencies of the supply chain operations, based on which they can quickly mitigate the risk in real time.

Also, security becomes a significant issue in automated inventory management and supply chain operations. Blockchain solutions also offer the incredible benefit of improved security in global supply chain operations involving an extensive network of suppliers and vendors.

All these advantages explain why the significance of blockchain in the global supply chain market is increasing at a rampant pace. According to Allied Market Research, in the coming years, the market size of blockchain in supply chain operations is projected to grow at a staggering CAGR of 80 percent.

Innovative businesses will vouch for blockchain integrations in supply chain and inventory management. Are you ready to embrace the incredible benefits of a supply chain digital revolution?

3. Enhanced data security

Now that most sectors run on big data, it leads to enhanced security from cyberattacks or leaking of confidential data, which has become essential for manufacturing businesses. For example, manufacturing businesses need to secure details of contracts and invoices from being a target of data breaches.

Moreover, as discussed previously, automated supply chain operations need to be protected from cyber threats and vulnerabilities. Blockchain solutions keep sensitive data more secure with efficient cryptography techniques in place. Besides, they eliminate threats in a more worthwhile way.

Blockchain ledgers come with end-to-end encryption for maximum security.

Besides another more significant feature of blockchain is that businesses can store all the data on a network of computers rather than storing all the information on a single system. This makes it highly difficult for cyber attackers to access confidential information.

Also, since it is a distributed ledger, no individual can alter or manipulate the data in a personal capacity as authorizations need to be sought. If any unauthorized person tries to manipulate the information, those who have access to the ledger will receive notifications.

Blockchain can effectively transform the manufacturing sector in terms of data security in an incredible manner. With the integration of blockchain solutions, manufacturers do not have to worry about large volumes of client and supplier data. The risk of vulnerabilities of breach will be minimum.

4. Automated payments with smart contracts

Smart Contracts are gaining high traction in the contemporary business world and are becoming a regular feature across industries. To explain, smart contracts are blockchain programs that execute the next step upon fulfilling predefined conditions. The purpose they are meant to serve is the automation of agreements’ execution to mitigate third-party involvement or unnecessary wastage of time.

In fact, as per Globe Newswire, the market size of global smart contracts is forecasted to grow at a CAGR of 24 percent between 2022 and 2024. The manufacturing industry involves multiple recurring payments to vendors and suppliers. Blockchain can enable manufacturers to automate these recurring payments via smart contracts to minimize third-party reliance.

Moreover, smart contracts will eliminate the possibility of human errors or unprecedented delays in payment because of human inefficiencies. When smart contracts are run on a blockchain, ll automatically make the payment if prerequisite conditions are met. In fact, if prerequisite conditions are met in times to come, the benefits of blockchain in payments will only get bigger and better.

With effective automation in the settlement of payments, manufacturers can rather focus on optimizing other operational aspects. Also, with a more secure system of payments, businesses can avoid unprecedented financial losses. Moreover, the manufacturers can reduce the overhead costs of transactions with smart contracts. Subsequently, they can save a significant part of operational costs.

5. Effective talent management

It is correct to say that a business is ultimately as competent as its people. This is the simple reason why businesses lay immense emphasis on talent management and performance management. Interestingly, as per Forbes, businesses with high employee engagement can be 21 percent more profitable.

However, for acquiring the prerequisite levels of workplace motivation and engagement, businesses need to ensure that they get everything right about talent management. Blockchain can offer a massive opportunity for leaders at manufacturing firms to drive  optional performances.

To explain, leaders can maintain effective blockchain records containing specific details of employees’ performance, employment history, skills, education, and training. Besides, the HR managers can also store details of preferred employee benefits and compensation forms. In fact, these are the times of HR analytics.

Organizations are now embracing a data-driven approach to employee experience and employee engagement. As a result, businesses can effectively manage and share all the required data and information about employees and the concerned authorities. Also, blockchain’s multifarious benefits in recruitment need to be looked at. Finally, organizations’ best-fit policies for optimizing engagement and retention.

From optimizing the supply chain to getting the best out of employees, blockchain brings enormous benefits to the industry. The market size for blockchain solutions in the industry is increasing at an unprecedented rate. More and more manufacturing companies are now investing wholeheartedly in the potential of blockchain. We can say this with reassurance that blockchain holds the key to the future of the manufacturing industry. The sooner manufacturers embrace blockchain sockchains, the more beneficial they will be.

Featured Image Credit: Provided by the Author; Thank you!

Kiara Miller

“Doing what you love is the cornerstone of having abundance in your life.” Wayne Dyer’s thoughts are well suited to Kiara Miller.
Miller has been working as a content marketing professional at “The Speakingnerd.” Her passion for writing is also visible in the innovative joys of material she provides to her readers.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Politics

Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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Politics

UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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