Cryptocurrencies are back in the news, but not for the right reasons. Crypto prices have crashed; people have lost money. The critics are gleeful, while supporters urge faith. So it would seem that no, we won’t be procuring goods and services up and down the supply chain using Bitcoin just yet. But while crypto was always a high-risk innovation, the concept of the distributed ledger that cryptocurrencies birthed are going strong. Blockchain-based startups are among the leading pack when it comes to innovation within procurement.
So, as the year commences with optimism for this prolific tech, let us look at three block chain based startups.
In one sentence, Everledger uses blockchain-enabled technology to ensure the provenance of the goods in your supply chain. For example, Everledger Minerals aims to ensure that the minerals you are getting through your supply chain are mined responsibly and create positive social impact. Making socially responsible procurement one step easier.
The blockchain is not the only emerging technology that Everledger claims to harness. They are also leveraging smart contracts, which are often based on blockchains, machine vision and Internet of Things (IoT) devices and networks to get rich forensic information. The information is then used to identify and track asset provenance to boost confidence and provide greater transparency.
We in Procurement can have an enormous impact on the world around us. Everledger makes it a little easier to have a positive impact.
Like Everledger, the Australian startup Civic Ledger uses smart contracts and blockchain technology to digitise operations and services to provide an advantage over, so-called, “traditional legacy systems”. Civic Ledger is very new, as they were founded only in 2016. But they have made great strides in developing and providing scalable solutions for civic governance and will probably get a foothold in Local Gov practices. Civic Ledger is one local startup that is worth keeping an eye on.
Returning to supply chain management, Agridigital claims to be the world’s first cloud-based, multi-participant, commodity management platform. Their blockchain based platform brings together all agents along the supply chain, from farmer’s right through to end consumers, so that they may trade and finance their agricultural commodities easily and securely. They are proving their concept in Australia with grain. But they have admirable, global aspirations.
These three are but a small selection of the blockchain-based procurement start-ups that are out there. We won’t know if they will change the world, but they are trying. Whatever you think of cryptocurrencies, blockchain is a technology that you cannot ignore. So, make your New Year’s resolution, an educational one.
For further insights into Blockchains for Procurement talk to Mark Sworn, Manager of Data Science, Purchasing Index.