Rising above the froth: ProMat keynote focuses on practical realities of blockchain
Blockchain may be the hottest technology on the block, but it can be hard to get concrete, real-world info on how to apply it in the supply chain space. Harvard Business School Professor Karim Lakhani looked to counterbalance that trend with the opening keynote panel session that he moderated at MHI's ProMat show yesterday.
"There's a ton of hype about blockchain, but most of the language is pretty frothy," said Lakhani, as photos of past media coverage of the distributed ledger technology flashed on the screen behind him.
Instead, he pressed the panel—which consisted of representatives from Cargill, Everledger, and Intel—to discuss the current reality of blockchain. Each of the panelists gave specific examples of how their companies are using or testing the technology today. Food and agricultural products company Cargill is committed to using blockchain to improve food safety and is currently piloting it to improve the traceability of its turkey products. On the provider side, Everledger began in 2015 as a technology platform that used blockchain for tracing and ensuring the provenance of diamonds. (The company is now expanding into other gemstones, fine art, and wine.) Intel has been working with a group brought together by software giant SAP to look at using the technology for cross-border trade.
While implementations are proliferating, David Cecchi, senior director of enterprise data at Cargill, warns companies not to see blockchain as a silver bullet that can solve all their problems. "We do believe that [blockchain] is for real, but we are deeply skeptical of the overapplication of blockchain as a general enabler of all things," he said.
A key step to implementing blockchain, then, is clarifying what the implications of the technology may be and managing user expectations, according to Cecchi. Some people are under the misperception, for example, that blockchain can establish the truth about transactions. "Blockchain doesn't know the truth," he said. "Instead, it's like writing with a pen in a perfect ink that no one can change or erase. But you can still write the wrong stuff down."
In addition, it's important to realize that blockchain alone cannot typically solve the problems that an industry is trying to address, such as food safety or establishing the origin of high-value, unique objects like diamonds, said Leanne Kemp, CEO and founder of Everledger. In the case of establishing the provenance of diamonds, Everledger uses blockchain in conjunction with scanning technologies.
Follow all our coverage of the ProMat show on our ProMat 2019 page and on Twitter.
