Will the Chemical Industry Embrace Blockchain?
Innovations in technology are driving an opportunity for development and growth in almost all industries today. One such advancement known as blockchain, may provide the chemical industry with a vehicle for great innovation gains.
Blockchain is a continuously growing list of records (blocks), which are linked and secured using cryptography. Each block contains a secure reference of the previous block (a cryptographic hash), a timestamp and transaction data. By design, blockchain is inherently resistant to data hacking. It is an open, distributed ledger that can record transactions in an efficient, effective, verifiable and permanent manner. Blockchain is purportedly more secure, and less expensive that existing data storage methods.
How might chemical manufacturers and related businesses benefit from blockchain? Commodity trading is one area that will likely be impacted by blockchain. Commodities are a key part of chemical value chains, allowing businesses to buy and sell more products at the best prices and margins by leveraging current market conditions. Chemical manufacturers both produce and consume electricity. Utilizing machine-to-machine integration and interaction allows them to trade electricity efficiently and safely by using data produced by process flow sheets, which can benefit from emerging blockchain based technology.
Some chemical companies are threatened by counterfeiting. Blockchain single ledgers verify the integrity of the products. Accounting for tracking logistics, such as regulations, transportation, location services, hazards, packing requirements, security and customer service has become extremely complex in the chemical industry; blockchain is becoming sought after as a solution to planning, implementing and tracking these complex and expensive logistical systems.
Blockchain is expected to reduce costs for chemical manufacturers. The new, next-generation ecosystems understand that the blockchain model offers a platform for safe, traceable, efficient resource trading. In the future, trading in the chemical industry will be completed as pure B2B transactions, without the need for a third party, reducing costs and potentially changing the game for many players in the industry.
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