IBM, others launch new blockchain network

NEW YORK: International Business Machines Corp announced on Monday a new blockchain network aimed at improving manual and cumbersome supply chain management.

Supply chain management involves overseeing the flow of goods and services, such as tracking the movement and storage of raw materials, inventory, and finished goods. It has been identified as one area that can benefit from blockchain technology, a shared database maintained by a network of computers connected to the internet.

Technology research firm Gartner Inc said by 2023, blockchain will support the global movement and tracking of $2 trillion of goods and services annually.

The new blockchain network is called Trust Your Supplier and alongside IBM, the other founding participants were Anheuser-busch Inbev, Cisco, Glaxosmithkline, Lenovo, Nokia, Schneider Electric and Vodafone.

Chainyard, a blockchain specialist firm, is providing the technology and building the network using IBM’S blockchain platform. The other companies, meanwhile, are putting their supplier data onto the network and contributing their expertise to expand the network.

Traditional methods of managing suppliers often involve cumbersome manual processes, which make it difficult to verify identities and track documents such as ISO certifications, bank account information, tax certifications, and certificates of insurance, IBM said.