Following on from our Top Procurement Infleuncers on Twitter 2017, we are launching an InstaSupply Insights series showcasing some of the content these great authors produce. Each week, we will be bringing you a different opinion piece from the top influencers' list on everything from Blockchain to digital transformation and AI. First up is Bertrand Maltaverne.
To be honest, I haven’t totally figured out all of the details of the inner workings of the blockchain technology. And, I do not think I will ever try to as some of it is very technical. I also do not believe that Procurement professionals should do it either. However, it is important to understand the implications of the blockchain technology. Because of the way the blockchain works, it has unique characteristics that represent a breakthrough with tremendous value for Procurement.
Many present the blockchain technology as a ledger or some database. Despite being true, this is restrictive and does not do it justice. The blockchain is much more than that.
Describing blockchain as a form of digital trust is more meaningful, and it gives a better idea of its true potential. It is because trust between partners is at the heart of making business. More trust makes making business easier, streamlines many processes, and creates transparency. Furthermore and more importantly, it means that blockchain can serve as the backbone of new types of cooperation between machines (M2M) and between humans (H2H) that were, until now, limited by the cost of building trust or the lack thereof.
“Blockchains allow us to have a distributed peer-to-peer network where non-trusting members can interact with each other without a trusted intermediary, in a verifiable manner.” Blockchains and Smart Contracts for the Internet of Things, Institute of Electrical and Electronics Engineers (IEEE)
Even if applications of blockchain technology are still mostly at an experimental stage, some companies are looking at the various possibilities that it represents. So should Procurement!