Block Mirror Season 1

Episode 3 — Unlocking the (supply) chain

In the last episode, we looked at how Blockchain can help a post-Nationalist, right-wing world sustainably re-open their borders for growth and innovation. If you haven’t read it, you can read it here.

In this episode, we’re following on the post-Nationalist world to a new world where Conscious Capitalism can finally thrive.

While many people may roll their eyes at the thought of a revolution in ‘supply chain management’, it could be one of the most impactful improvements we can make as a society.

It is agreed that a free press is a fundamental pillar of a functional democracy. For democracy to prosper, you need a well-informed electorate. Well, perhaps the same is true for Capitalism.

For Capitalism to continue to create a prosperous, sustainable society, perhaps we need well-informed consumers.

When every consumer knows exactly what went into every product at every step in the process of creation, consumers can vote with their purchasing decisions.

At Blockchain Reply, we believe that when a product’s journey is transparent and known, shoppers will make decisions that encourage corporate social responsibility at every level.

When you can easily see who made your clothes, where the materials came from, and how far a garment has travelled, ignorance is no longer an option

It’s not that consumers choose ignorance. It’s not their fault. Today, it’s just too complex to take into account the entire supply chain of everything we buy. In fact, it’s almost impossible. You’d need a tonne of research and, possibly, inside information.

A garment might say “Made in Taiwan,” but is that where the cotton is from? Unlikely. Is that where the dye is from? Probably not. Did the factory meet acceptable safety and welfare standards? Who knows.

In the smart city of tomorrow, however, when Dan and Sally go shopping for clothes, they’ll have total insight over every step of the garment creation process. And when they see something they don’t like, they can choose not to buy the product.

In that way, corporate social responsibility is not just a competitive advantage, but an absolute necessity for business survival. Consumer demand could drive a sustainable evolution.

Only Blockchain technology makes this possible because it makes data immutable. At every stage of creation, the process is verified by nodes in the Blockchain network that authenticate the data provided in manufacturing. That means that no one can lie or manipulate the data to pretend that ethical standards were met when in fact they weren’t.

There remains only one point of failure: the point at which humans enter supply chain data on the Blockchain. That is still driven by humans today, through QR code scanning, for example. The future solution must address this to claim absolute transparency and trust.

The benefits of Blockchain in the supply chain applies to every industry.

Imagine a salmonella outbreak. You could pinpoint instantly which products are affected.

Let’s imagine that Dan and Sally’s friends, John and Lucy cook a chicken carbonara for dinner. That includes chicken and eggs.

Unfortunately, however, there has been a salmonella outbreak. The news reveals it is a relatively small batch of chicken from a local farm in the last week. Were this to happen today, Dan and Sally would have no idea if their food has been infected.

In the smart city of the future, however, a salmonella outbreak would be much less of a problem. The Distributed Ledger Technology would allow for efficient tracking of every chicken, and every chicken product, at every stage of the supply chain.

The benefits of this are clear and significant. First of all, Dan and Sally can quickly and easily check if their chicken products are among those affected. Secondly, the farm, supermarket, and other people in the supply chain only need to recall the specific affected products. This means the salmonella outbreak affects far fewer people than it would today, the economic consequences are reduced to the minimum necessary level, and wastage is reduced so that only the defective few products are dumped.

Now imagine you could track the source and life cycle of every single product in your supermarket. Shining a light on corporate behaviour will inevitably lead to better behaviour on a mass scale.

And the good news doesn’t stop there.

Using the same Distributed Ledger Technology on the Blockchain, you could give insurance companies permission to trace the food you buy. Private healthcare insurances could offer you a reduction in premiums to reward healthy behaviour.

When a product’s journey is transparent and known, shoppers can make decisions that encourage corporate social responsibility at every level, encouraging an evolution towards Conscious Capitalism.

In the next article, we’ll explore the new world in a post-2034 financial collapse that sees the end of the US Dollar as the world’s reserve currency and the rise of the BitDollar — the official global currency representing cumulative global GDP. In this new world, global taxes are paid instantly and decentralisation encourages the redistribution of wealth in a fair way without removing entrepreneurial incentives and creativity.

Until next time,
Tommy Jamet & Gautier Hartzer

Reply Blockchain Solutions


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