CEO of web-based business network Tradeshift, Mr. Christian Lanng has told CNBC he believes that blockchain technology is not quite ready yet when it comes to supporting the global supply chain.
Mr Lanng raised issues around the sheer volume of data and the integrity of the system, adding that the distributed ledger technology is as yet unproven and that is expensive to implement.
Much hype has been centred around the new technology, with the World Economic Forum (WEF) recently releasing a report stating blockchain technology could generate up to US$1 trillion by 2025.
The findings were release in a new paper entitled: ‘Trade Tech – A New Age for Trade and Supply Chain Finance’ which foresees import and export times being cut by 44%.
The report also stated that Middle East economies could be set to benefit as they are emerging economies that allow greater digital implementation, thus helping them get access to credit.
However, Lanng’s concerns highlight a bump in the road with regards to adoption.
While blockchain has been relatively hard to implement in other fields, the technology is almost tailor made for the supply chain where many players are seeking security, efficiency and increases in the bottom line along a chain.
Further still, the supply chain benefits from shared data, yet no company is willing to share its data, meaning blockchain provides a private network in which data can be shared without prying eyes.
Tests continue into the widespread application of the technology.