Katalyst is a leading provider of advanced manufacturing and engineering solutions driven by blockchain and other disruptive technologies.
When talking about the factory of the future in 2020, one of the most significant enabling technologies is blockchain. RPA, AI, IoT are automating and connecting the devices, processes, and functions in a manufacturing set up. Still, as data moves seamlessly between units and functions, the challenge of security boggles businesses. Thus, the factory of the future is incompetent without a high-end security mechanism.
Apparently, blockchain is a distributed ledger technology (DLT) that records value-exchange transactions in digital nodes that are indirectly connected, thus imparting more excellent stability and real-time transparency to the concerned parties. Blockchain works on a consensus algorithm that is difficult to manipulate and thus gives rise to a trusted transaction system where all participants can review the information uploaded on the blocks. Therefore, blockchain is recommended in 2020 to bring sustainability to the manufacturing industry.
According to Gartner, business value-added by blockchain will exceed $3.1T, as 30% of manufacturing firms will implement Industry 4.0 pilot projects using blockchain by 2030. The inherent benefits of blockchain like superior transparency, higher traceability, immutability, increased cost efficiencies, enhanced speed, and reducing risk probability have increased the use cases of blockchain in manufacturing, thus paving the way for a new manufacturing business model.
Top areas where manufacturers will use Blockchain in 2020
Smart Contract Management: Smart contracts are revolutionizing the traditional ways of dealing with multiple vendors and suppliers. Smart contracts are digital contracts between parties that are coded on the blockchain so that involving parties can execute them without the need for intermediaries. They are self-executed contracts as they automatically enforce the obligations like payments or inspection by triggering the codes when an event is due in agreement. The direct benefit to manufacturing firms in 2020 will accrue in the form of higher payment efficiency due to timely remittances and faster dispute resolution. Unlike conventional paper-based systems, where cumbersome approvals are needed, blockchain will offer a secured, digital, and automated mechanism that reduces the chances of fraud and misappropriation and also turnaround time.
Digital Threads: A digital thread is a framework that builds an integrated profile of the product/ asset attributes across the entire product lifecycle that is accessible to design, engineering, manufacturing, service and maintenance, warehouse, logistics, and customer relations team for real-time updates related to the performance of the product/ asset. A digital thread on blockchain enables seamless data sharing between stakeholders without any fear of alterations or data tamper.The manufacturing firms will be benefitted in 2020 as they can track the complete history of the products, effectively manage asset maintenance, customer service, and warranties, recall faulty products, and effectively collaborate with supply chain partners.
Supply Chain Traceability: Blockchain is resilient technology that can’t be altered easily, and thus manufacturers rely on blockchain to increase the traceability and reliability of the information that flows across the supply chain. As the transactions in the blockchain are time-stamped, irrevocable, tamperproof, and auditable, authorized supply chain partners can efficiently interact with each other and carry out regular activities without interruptions and intervention of intermediaries.Using this groundbreaking technology manufacturer will be able to adhere to industry standards in 2020 as blockchain significantly improves partnership with suppliers, quality of the products, traceability of the products, and customer service.
Asset Maintenance: Asset management refers to the process of managing assets across their lifecycle. Maintenance of assets is crucial for increasing profitability while reducing the costs of the assets. In 2020, more and more manufacturers will make this process digital using blockchain capability. Since blockchain facilitates a single view of truth, it’s possible to assess the asset performance from end-to-end, thus reducing their vulnerability. Further, all the activities that are performed on an asset are recorded on a distributed ledger in real-time. With this level of verification, it becomes easier for manufacturers to plan predictive asset maintenance.
How Katalyst Technologies can help in achieving manufacturing efficiencies using Blockchain in 2020?
Katalyst Technologies is a leading provider of advanced manufacturing and engineering solutions driven by blockchain and other disruptive technologies. If you are looking forward to embedding blockchain infrastructure across your business value chain in 2020, our experts can help you with the end-to-end implementation of blockchain capabilities, explicitly addressing your business needs.
Contact us today.
Source Link - https://katalysttech.com/blog/blockchain-for-manufacturing/
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