Blockchain represents a decentralised digital ledger system that intricately records transactions across a computer network. This ensures each transaction remains secure, transparent, and unchangeable. Key attributes comprise:
Decentralisation: By removing the need for a centralised authority, it boosts both security and transparency.
Immutability: Once transactions are validated, they cannot be altered.
Transparency and security: Blockchain allows all participants to view transactions, secured through cryptographic hashing and consensus methods such as Proof of Work or Proof of Stake.
Smart contracts: These are self-executing contracts that automate the stipulated terms of an agreement.
In supply management, blockchain improves traceability and diminishes fraud risk.
Despite the numerous advantages offered by blockchain technology, its implementation can sometimes be convoluted and consume significant energy, particularly concerning networks that utilise proof-of-work. Furthermore, its practical uses can differ widely depending on the specific technical and regulatory frameworks.
