At the Annual Investment Meeting (AIM) Congress 2020 in Dubai, CEO Arman Sarhaddar spoke about the future of Blockchain technology for supply chains in the fight against COVID-19. You can watch the #AIMDigital video below.
It is no secret, that Supply Chain Management became a challenge during the pandemic: Supply Chains were disrupted and many other problems occurred. But these issues showed once more the potential of Blockchain Technology.
We need to take action, but people are afraid of change… So, what can we say about Blockchain 2021? And how can we build trust in Blockchain technology?
1. Blockchain Technology in Supply Chain Management
In October, Arman Sarhaddar, the inventor of ivault, was personally invited by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Minister of Defence of the UAE and Ruler of Dubai, to speak at #AIMDigital 2020.
In this article you will find a summary of his impressive speech “Future of Blockchain and its Impact on Supply Chain and fighting the Pandemic”. We will also provide you with further information about the topic.
The Annual Investment Meeting is a special event for technological innovations and interested investors from all around the world. We were honored to have this great chance to be heard and to connect with new partners.
Here you can watch the video recording of the transmission on October 21, 2020:
2. Challenges in Supply Chain Management
The pandemic has forced us to make changes in many areas. But above all, COVID-19, truly a catalyst of digitalization, forces us to be open to these changes.
To understand the impact of COVID-19, Arman takes one step back first: to the time before the pandemic.
For several years pre-COVID, consumers have already been more and more concerned with quality, sustainability and climate impact of products. For example, more people buy regional and organic food. Certifications, quality assurances and supply chain in general, has become a topic for consumers.
Mainly, production conditions help consumers to evaluate products in concrete terms. Thus, a lack of supply chain transparency can also have a negative impact on their purchasing decision.
However, seals and certificates only partially fulfill consumers’ wishes for more transparency. Sometimes even certified products were not up to standards, for example in regard to organic certifications. Thus, governments are now establishing frameworks to dictate to companies quality requirements, which are slowly becoming more popular.
3. Impact of COVID-19 on Blockchain
At the beginning of the 2020 pandemic, the shortcomings of many supply chains were exposed.
There were many serious disruptions, for example in the supply of food. Supply bottlenecks in the pharmaceutical sector also became more serious.
Consumer behavior and regulations created challenges and requirements. And so did COVID. COVID-19 has created many problems, but also opportunities for change. As bad as the pandemic was and still is, these problems give companies the opportunity to revise processes and tackle inefficiencies.
This is exactly where Blockchain technology can help:
It provides platforms for the transmission and data exchange with the highest reliability and cybersecurity (#InfoSec). It provides platforms for process optimization and automatizations. And it can make different systems interoperable, to work together in a much more efficient way.
Undoubtfully, the digitalization, which is still far behind in many industries, has been fueled by the pandemic in all sectors. COVID-19 has boosted the realization of the immense potential of Blockchain technology.
The grave disruptions many businesses encountered made it obvious that there is a need for the implementation of such innovative solutions for supply chain management.
4. The Future of Blockchain technology
Nevertheless, we have to keep in mind, for supply chain management and optimization, Blockchain technology is not enough on its own. It can provide astonishing links, connections and integrations.
But to use the full potential of Blockchain technology, we need 3 things:
- to provide standards in data integration and exchange,
- to meet transparency and privacy requirements of companies, clients and regulators, for example with permissioned systems, and
- to connect Blockchain with other technologies, such as NFC, GPS, etc.
Thus, at Vault Security Systems AG, we are combining permissioned blockchains with technologies such as NFC, RFID, GNSS, GPS. Working with permissioned blockchains meets all requirements:
- Companies decide what and how much to disclose.
- Clients can rely on privacy.
- Regulations can be met without compromising security.
When speaking about building trust, what ivault for supply chain management provides, is: A secure ledger for data exchange, where companies can decide what they want to share with each other, and with everyone else, while the data companies decide to keep private is encrypted with the best available security.
P.S. If you would like to learn more about ivault, please read our article about our news from Silicon Valley: CIO Applications rates ivault among the Top 10 Blockchain Solutions of 2020.
Besides Supply Chain Management, there are many other areas of application for Blockchain technology. In the pandemic, healthcare is another focus of the Blockchain pioneers.
Blockchain could have prevented, what just happened in Finnland: According to CNN, patients have been blackmailed after their sensitive health data, namely psychotherapy records, were stolen by hackers.
Following Dr. Efrat Shefer (Philips), Jerome Droesch (Cigna Insurance) and Sinan Atlig (Pfizer) for example, who, along with CEO Arman Sarhaddar, also acted as #AIMDigital Speakers, the pandemic accelerates the adoption of new technologies in healthcare as well. Artificial Intelligence, Big Data and Blockchain play a central role.
5. Outlook: Building trust in Blockchain 2021
Despite all this, a large number of companies are still struggling. What is holding them back?
One of the main problems is the lack of trust in Blockchain technology. A lot of people (and decision makers) are afraid of change. They are reluctant to implement new technologies that they cannot fully grasp.
Blockchain technology is still seen in connection with cryptocurrencies and FinTech. However, today’s Blockchain solutions like our product ivault are more energy efficient, sustainable and scalable than the old algorithms of some cryptocurrencies. Furthermore our Blockchain app is GDPR compliant.
What many companies do not know is how easy it is to implement Blockchain technology: It can be added to an existing Supply Chain Management system. Established processes do not have to be reinvented from the bottom, but can be retained and optimized using Blockchain technology.
In order to strengthen the confidence of companies, decision makers have to be more educated about the advantages of Blockchain technology. They do not have to understand every technical detail.
These advantages can be summarized in 3 core statements:
- Blockchain means increased efficiency in various areas.
- Blockchain brings information security at the highest level.
- Blockchain is a clear competitive advantage – especially, for those who act fast…
On the other hand, public trust will significantly increase when end users see Blockchain in their everyday life. Online and offline. In banking or trading applications. In certificates for quality, origin and production conditions of everyday consumer goods such as food.
In the supermarket. In the pharmacy. At the family doctor. At home.
The question is not if, but when it will happen.
P.S. Here is the Thank You Letter, we received from Dubai a few days ago – along with an invitation to join the Annual Investment Meeting again next year. We are looking forward to seeing you there in 2021!