Using Smart Contracts to Transform Supply Chain.

This video is to help people understand on smart contracts can transform supply chain. Blockchain provides transparency and security features that to better manage supply chain. Bitcoin and other cryptocurrency with smart contracts has the potential replace third parties to facilitate various transactions.

What are Smart Contracts

Smart contracts are digital contracts that are written using code and can be automatically executed when certain conditions are met. They have the potential to transform supply chain management by enabling the automation of key processes and reducing the need for manual intervention.

Here are a few examples of how smart contracts could be used to transform supply chain management:

Automating the procurement process: Smart contracts can be used to automate the process of purchasing goods or services from suppliers. For example, a smart contract could be set up to automatically release payment to a supplier when certain conditions, such as the receipt of goods or the completion of a service, are met.
Streamlining the tracking of goods: Smart contracts can be used to track the movement of goods through the supply chain in real-time. For example, a smart contract could be set up to automatically update the location and status of goods as they move through different stages of the supply chain.
Enhancing visibility and transparency: Smart contracts can be used to provide greater visibility and transparency into the supply chain. For example, a smart contract could be set up to automatically record and share information about the origin, quality, and movement of goods.
Reducing the risk of fraud: Smart contracts can be used to reduce the risk of fraud by enabling the automatic execution of transactions based on predetermined conditions. This can help to reduce the need for manual intervention and the potential for human error.

Overall, smart contracts have the potential to transform supply chain management by automating key processes, streamlining the tracking of goods, enhancing visibility and transparency, and reducing the risk of fraud.

Blockchain, Smart Contracts and Supply Chain Quotes

“You could imagine something like a completely automated system for renting bikes that’s just done completely over blockchain crypto-payments. And theoretically just sort of start it up, and it works completely autonomously.” ~Vitalik Buterin
“The blockchain is a distributed network that solves all the problems that we have of finance, but more broadly, it’s like a philosophy. It’s a way of life.” ~Mike Cernovich
“Blockchain verifies the information using the following steps: Consensus – it requires the majority of the block builders to agree that the occurrence actually happened. Consistency – requires that the new information fits with the previous block. Transaction – it requires that the transaction occurred by looking at the previous block, ensuring that two people did not record conflicting accounts of the information. Automated Conflict Identifiers – the software itself trolls for conflicts within the blocks and the structure. There is no centralized location, or big computer in the sky, where the information can be altered or stolen.” ~Jacob William
“The common theme from everyday transactions is that we trust the institutions and the centralized databases they maintain to accurately keep a record of our lives.” ~Mark Gates
“The classic example used to demonstrate smart contracts in the form of code executing automatically is a vending machine. Unlike a person, a vending machine behaves algorithmically; the same instruction set will be followed every time in every case. When you deposit money and make a selection, the item is released. There is no possibility of the machine not feeling like complying with the contract today, or only partially complying (as long as it is not broken). A smart contract similarly cannot help but execute the prespecified code. As Lessig reminds us, “code is law” in the sense that the code will execute no matter what. This could be good or bad depending on the situation; either way, it is a new kind of situation in society that will require a heavy accommodation period if blockchain-based smart contracts are to become widespread.” ~Melanie Swan
“The blockchain does one thing: It replaces third-party trust with mathematical proof that something happened.” ~Adam Draper
“Social Networks Censorship on social media is common, especially on forums. Some companies are working to create a type of decentralized online community that operates on an open source code. This means that it will be built on smart contracts that will eliminate censorship. Whether this is good or bad is subjective, but it serves to show the diversity of smart contracts and blockchain applications. One example of an Ethereum-based social network is Akasha. Akasha lets users publish, share, and vote for work that has been published on its platform. It aims to provide a decentralized option that gives an alternative to services such as Medium and WordPress. The system works by giving monetary incentives in the form of Ether to users to encourage engaging and rich content. Insurance” ~Ikuya Takashima