{"id":79750,"date":"2021-03-16T03:51:53","date_gmt":"2021-03-16T03:51:53","guid":{"rendered":"https:\/\/www.i-sprint.com\/?p=79750"},"modified":"2021-03-16T03:51:53","modified_gmt":"2021-03-16T03:51:53","slug":"how-blockchain-can-build-consumers-confidence-in-products","status":"publish","type":"post","link":"https:\/\/www.i-sprint.com\/ja\/how-blockchain-can-build-consumers-confidence-in-products\/","title":{"rendered":"How Blockchain can build consumers\u2019 confidence in products with product transparency"},"content":{"rendered":"
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There\u2019s a growing consensus that blockchain technology is the next step in the digitization of the supply chain, providing <\/span>total<\/span><\/i> visibility by bridging the remaining analogue gaps between systems within enterprises and across enterprise borders.\u00a0<\/span><\/p>\n

In other words, despite the advent of digitalisation, supply chain data still tends to exist in silos. These gaps become more apparent as supply chains evolve from linear systems into complex ecosystems of contract manufacturers and suppliers scattered across different parts of the world.\u00a0<\/span><\/p>\n

Blockchain technology solves this problem by making product information highly transparent. Instead of appointing an intermediary to oversee changes to these records, blockchains synchronise all data changes and transactions across all parties in the supply chain, from the manufacturer and distributor to the warehouse operator and retailer.<\/span><\/p>\n

Aside from solving supply-chain problems, blockchain also helps companies meet the demand of tech-savvy consumers who demand transparency about the products they buy. <\/span>Research<\/span><\/a> shows that 81% of consumers in 2020 desired transparency from brands, while 29% want information about brands\u2019 sustainability practices. Consumers want to know more about products\u2019 ingredients or components, as well as how they are sourced.\u00a0<\/span><\/p>\n

This means that by providing trustworthy product provenance and transparency information through blockchain, brands can gain increased consumer confidence.<\/span><\/p>\n

Benefits of blockchain technology from manufacturers to consumers<\/strong><\/h3>\n

Blockchain technology has important ramifications in the manufacturing industry. Raw materials and end products change hands dozens of times as they move through production, processing, packaging, and distribution before falling into customers\u2019 baskets. Product recalls prove that any products can be exposed to serious risks throughout this complex chain, whether it\u2019s by contamination, spoiling, or products being outright replaced by something else.\u00a0<\/span><\/p>\n

Blockchain technology provides a much-needed solution for keeping accurate and updated records of all product history, allowing supply chain players to trace each product journey right back to its source.\u00a0<\/span><\/p>\n

4 main blockchain application scenarios<\/strong><\/h3>\n

The possibilities for using blockchain technology in supply chain management are endless. But in terms of improving transparency, the unique attributes of blockchains can be leveraged in four main scenarios.\u00a0<\/span><\/p>\n

Provenance information<\/strong><\/h4>\n

One of the key features of blockchain technology is its ability to store the provenance information of every product in the supply chain and issue official product certificates. This allows consumers to know the unique \u201cstory\u201d of a product.<\/span><\/p>\n

The practical benefits are immense. More recently, Singapore\u2019s Health Sciences Authority (HSA) issued a health warning against <\/span>three food products<\/span><\/a> that contain prohibited chemical substances. The products had been previously banned but resurfaced in new packaging on local eCommerce sites. Blockchain-enabled products can nip this problem in the bud.<\/span><\/p>\n

Product traceability<\/strong><\/h4>\n

The immutability and traceability of blockchains ensure transparency. Everyone involved in your supply chain has the same copy of the ledger, which prevents unintentional mistakes and tampering of transaction history.\u00a0<\/span><\/p>\n

This is particularly crucial in the second-hand market as it provides truthful data that facilitates buyers’ understanding of your products. This gives them the confidence to continue trading.<\/span><\/p>\n

Product authentication<\/strong><\/h4>\n

When products are traceable, both sellers and consumers can verify their origin and authenticity.<\/span><\/p>\n

Blockchain, combined with serialization, various tagging and digitalization techniques such as smart packaging, can also help prevent product tampering. For example, a \u2018smart\u2019 bottle cap equipped with a sensor will let you know if the seal has been broken. If this happens at a distributor\u2019s warehouse, all concerned parties would know thanks to the smart cap\u2019s blockchain integration. This would prevent retailers from selling inauthentic products. Manufacturers could also identify attempts to tamper with a product, which could lead to prevention of counterfeiting.<\/span><\/p>\n

Product ownership<\/strong><\/h4>\n

A blockchain provides companies with an official and authoritative registry that can be distributed to all their supply chain players. The blockchain then stores the information of:\u00a0<\/span><\/p>\n