Blockchain Reality Check

In a recent discussion during the World Economic Forum, Christian Lanng, CEO of digital invoicing startup Tradeshift, took a sharp jab at the overwhelming buzz surrounding blockchain’s potential in supply chains. His verdict? The technology is still a few steps away from its grand reputation. “It’s a great technology for managing authenticity and integrity,” he stated. However, he further explained that supply chains present challenges that blockchain isn’t quite equipped to handle as of now.

The Hype vs. Reality

Lanng noted that while many are eager to harness blockchain for seamless supply chain connections, they might be missing the mark. He suggested that instead of focusing solely on blockchain, businesses should prioritize establishing a robust digital connection between supply chain components.

Use Cases Where Blockchain Shines

Despite his reservations about supply chains, Lanng emphasized several areas where blockchain holds promise:

• Identity Verification: Ensuring that the right people are connected to the right digital identities.
• Certification Management: Keeping track of product certifications and compliance with regulations.
• Tracking Product Sources: Confirming that products are sourced ethically and sustainably.

Performance Problems Persist

One of the most pressing issues raised by Lanng is blockchain’s performance. With supply chains operating on tight schedules, any potential delays introduced by current blockchain systems could be catastrophic. He aptly pointed out, “It’s not a high-performance technology.” In an age where speed and efficiency are paramount, that’s a significant roadblock.

Cautionary Tales Ahead

While acknowledging the innovation’s early successes, Lanng warned of premature optimism. He recognized the positive strides made, like the praised collaboration between IBM and Maersk, but urged stakeholders to steer clear of overhyped projections. “I also want to be a little bit cautious for some of the hype,” he noted, underscoring the need for realistic expectations.

Future Outlook

Despite the hurdles, the desire for blockchain advancements remains strong. Recent collaborations, such as the agreement between Associated British Ports and Marine Transport International to explore blockchain logistics, suggest there’s still interest in testing this technology.

As with any emerging technology, the goal is clear: finding the sweet spot where innovation meets practical execution. As Lanng aptly advised, it’s all about making connections—not just throwing the term ‘blockchain’ around like confetti.