Tag Archives: Challenges

Top 3 foods with hightest environmental footprint

Climate change is getting real, and agriculture is one of the largest sources of heat-trapping greenhouse gases such as methane and carbon dioxide.

But when it comes to their “carbon footprint,” not all foods are created equal. So here is a Top 3 with the highest carbon footprint, and a visual overview of all foods with the highest carbon footprint. This is so you are aware, and have this in mind, when you put your food in the basket. An easy way to bypass this, is to buy as local as possible.

Top 3

  1.  39.2 kg of CO2.                                                                                                       You thought is was beef, but sorry lamb lovers. Eating a kilo of lamb is equivalent to driving about 90 miles or 145 km! In the US a massive 50% of lamb is imported, so a lot of the carbon footprint comes from shipping. But the main contribution is the animals’ digestion, their feed, manure management and other farm operations.
  2. 27 kg of CO2
    The sinner we all know (or should know) is beef. Cows produce a lot of methane (a potent greenhouse gas), and also require a lot of water and land. Especially in South America, a lot of rainforest have been eliminated, to make way for huge farms for the never ending urge for for beef.
  3. 13.5 kg of CO2
    And maybe the joker here, is cheese. Cheese is also a major CO2 contributor. Only a small fraction of cheese is imported to the US, but that accounts for half of all the carbon emissions from cheese.

 

Source: https://bit.ly/2Ek9hPL

 

Sources:

http://www.businessinsider.com/the-top-10-foods-with-the-biggest-environmental-footprint-2015-9?r=UK&IR=T&IR=T

https://www.ewg.org/meateatersguide/a-meat-eaters-guide-to-climate-change-health-what-you-eat-matters/climate-and-environmental-impacts/

Book: Our Food Our Future – Eat better, waste less, share more; (2017) Alan Watkins & Matt Simister.

Photo by Leon Ephraïm on Unsplash

Farm animal welfare & transparency. So call me blockchain? Maybe

This article is written by Dan McGlynn:

Sustainability & animal welfare – the power of transparency, technology & collaboration – so call me blockchain, maybe?

Farm Animal Welfare – it’s now seen as a strategic opportunity by many global companies.

The benchmark…

I was fortunate enough to attend the launch of the 6th BBFAW report evaluating the performance of 110 large food institutions. The headline was ‘good progress but still a long way to go’.

Thank you to Nicky Amos for inviting me, one of the best events I have ever attended.

The venue was the London Stock Exchange – strange setting you may possibly think? Not so, it became very evident when David Harris, Head of sustainable investment at FTSE Russell opened the event by talking about how investors are closely linking sustainability and animal welfare metrics with share performance and valuation.

All business should take note – as the consumer becomes more aware and demands greater transparency on the goods that they are buying, companies that are transparent with their performance in dealing with ethical, sustainability and animal welfare issues will outperform those that are not.

Steve McIvor – chief executive of World Animal Protection made some great comments : ‘Consumers are showing that they increasingly care about the welfare of animals when they are deciding where to eat’.

The Foodservice industry still has ‘a lot more work to do’ providing transparency of animal welfare in their supply chains according to the new report. Despite making some progress (JD Wetherspoons rose 3 places) in the Business Benchmark on Farm Animal Welfare, pub & restaurant chains lag behind retailers and manufacturers and still need to make improvements.

No hospitality company achieved the ‘tier one’ status in the ranking but McDonald’s & our very own Greggs placed towards the top of tier two after making farm animal welfare a part of their business strategies.

The likes of KFC, Pizza Hut and Starbucks managed tier five, defined as showing limited evidence of implementation, while Subway and Burger King both ranked in tier four, and were defined as making progress. Waitrose, Marks & Spencer and The Co-operative Group all achieved tier one ranking.

The stats are staggering. Globally, 50 billion chickens are slaughtered every year (that’s 7500 every 10 seconds) – a large proportion of those live in unacceptable conditions. A lot of work is being done with the emerging markets of countries such as China, Brazil and Thailand.

 

Did you know that the largest dairy industry in the world is in India? China produces 700 million pigs per year – the UK produces 10 million. Big numbers, lots of animals.

The report scores companies on 4 areas:

·      Management policy & commitment

·      Governance & management

·      Leadership & innovation

·      Performance reporting & impact – increasingly becoming more important

Similar to the Modern Slavery act 2015, it’s not good enough just to have a policy in place. The company needs to have the commitments as part of their culture and strategy and more importantly, measure and report on their performance.

Only 11% of companies report on animal welfare outcomes – that’s 12 out of 110 global businesses. The answer is data and technology.

Can blockchain fill this void? Possibly. There are more and more commentators on this subject, very few are experts and it’s unproven in food. Watch this space and I aim to provide more insight on this subject soon.

There is existing technology that maps supply chains and is able to harvest sustainability & animal welfare KPIs from any part of that chain – look at my linked in profile and you will find out who they are!

Transparency will be king – do not underestimate the power of transparency. Technology will be the vehicle for this much need transparency.

If any of the above has resonated and you would like to discuss this subject further, lets connect and get in touch. I am heading up a project to drive collaboration in the foodservice industry focusing on compliance, ethical and animal welfare performance. All fingers point towards integrity.

Don’t get me started on integrity (doing the right thing even when nobody is looking). That subject is for another day.

I also love feedback – good, bad and ugly, it’s how we all grow so please let me know your thoughts.

Have a great day

Dan McGlynn

Authenticate IS

Original posted here:

https://www.linkedin.com/pulse/farm-animal-welfare-transparency-so-call-me-maybe-dan-mcglynn/

Food fraud in China – KFC is the answer?

39 year old Shen Yicheng, a former computer salesman, now a farmer that are growing food the ecological way, which is a rare thing among farmers around the outskirts of Shanghai. He produces products without pesticides. He wanted to be self-sufficient, but now friends and family want to buy his carrots and watermelons. The reason? Chinese food products are filled with toxic chemicals or otherwise harmful to their personel health.

Even though there is Chinese food products with eco labels, there is massive lack of confidence in that labelling due to several incidents with food fraud (and because the labels can easily be bought on Taobao). The list is long and horrifying: rats sold as lamb, cooking oil fished up from the sewage and poured in new bottles, poisoned milk powder, decades old so-called zombie meat and an almost impressive selection of fake products, including everything from eggs and rice to prawns. Scams, corruption and unscrupulous profit hunting are a major part of the problem.

Food fraud in China

In annual interviews with 5000 citizens from different cities, the concern of food safety is top one or two every year, the last ten years. They are terrified to get sick or die of what may be a part of their diet. Everybody knows that the food supply chain in China is a huge mess. This is one of the reasons why people eat at KFC (Kentucky Fried Chicken). Crazy as it may sound, people eat there because it’s healthy (and safe). People trust KFC, because of hygiene control and the chicken is not fake.

China is ready for a food innovation revolution. One of the tools could be a implementation of new technology, where blockchain can be a way forward, to reduce the risk of food fraud along the supply chainBlockchain is just one tool in the belt, where vertical farming or lab grown meat also can be a path forward. 

The people of China are ready for it, so they can live with the peace of mind, that the food they eat are safe and sound.

References:

http://classic.samvirke.dk/magasin-artikel/1373000000-munde-maette

Fish is good for you(?) – Lack of transparency of mercury levels

Eat fish at least 2 times a week! That is what the Danish Ministry of Environment and Food say, that fish is the main course several times a week. It is important to eat different fish species of both fatty and lean fish. In total, you should eat 350 grams of fish per week, of which about 200 grams should preferably be fatty fish.

But it comes with a catch. Mercury! As illustrated below, mercury is a natural part of the food chain, but coal-fired power plants are the No. 1 culprit when it comes to adding mercury to our environment, that ends up in the fish that you eat.

Fish that are contaminated with mercury, can lead to very serious diseases. Fish in Danish waters have such high levels of mercury that researchers in all of the samples in 2015. In some cases, the level of mercury was up to 13 times higher than the limit value, according to a report published by DCE (Danish Centre For Environment And Energy). However, it is worth noting that the content in 98 percent of the cases does not exceed the limit value of the food for humans. But pregnant women and children is to avoid fish due to mercury contamination. As the consumption of mercury in the quantities can impair immune response and cause neurological damage leading to loss of coordination, vision, hearing and can produce mental retardation, especially in the young.

If we travel across the globe to Japan, dolphin and whale meat is a common source of food. Here tests conducted by BlueVoice.org on residents of the village of Taiji, Japan revealed that people who eat dolphin meat exhibit extremely high levels of mercury and other heavy metals. The Japanese Health Ministry advised level of mercury in humans is 0.4ppm. The highest level in their tests revealed a mercury level of 18.9 ppm in a man who eats dolphin to this day.

One tragic side effect of the ban on commercial whaling is that Japanese fishermen have increased their slaughter of dolphins many fold. A product labelled and sold as whale meat is often found to be dolphin meat if subject to molecular genetic analysis.

There is som tragic irony that the arguement that we not kill dolphins and whales for food cunsumption includes the fact that we have contaminated the seas to such an extent that these creatures are dangerous to eat.

BUT, there is hope. Safe Catch! Safe Catch inspects the fish to ensure it meets conventional standards: It has to fall within the normal size for the particular type of tuna, and display no visible deformities or strange odors that indicate disease. Then, Safe Catch partnered with the Monterey Bay Aquarium Seafood Watch Program–a global authority on sustainable and ethical seafood standards–to ensure the catch methods and labor practices of the fishing companies they source from fall in line with those standards.  Furthermore, Safe Catch only sources from fisheries that have been certified by the U.S. Department of Commerce.

To carry out the mercury test, Safe Catch takes a small flesh biopsy (around the size of a grain of rice), using a syringe-like tool. The sample is then injected into the technology interface. On the screen, the Safe Catch team enters data about the origin and size of the fish; the analysis of the mercury level takes under a minute. Those fish that don’t pass the test are returned to the fishermen and likely sold to other tuna companies.

References

https://www.fastcompany.com/40497117/this-mercury-safe-tuna-company-is-on-a-mission-to-clean-up-the-oceans

https://www.foedevarestyrelsen.dk/Selvbetjening/Guides/Sider/Saadan-begraenser-du-kviksoelv-fra-isaer-fisk.aspx

http://www.bluevoice.org/news_dolphinmeat.php

Bananas from Ecuador – Village and bananas showered in pesticides

In Ecuador, you live and die with the poisonous bananas.

Bananas from Ecuador are sprayed with pesticides, many of which are particularly toxic.

Seven are illegal in the EU and, according to the Danish Environmental Protection Agency, all 18 are banned in Denmark. The pesticides are applied by airplanes spraying the pesticides beyond Ecuador’s more than 5000 banana plantations. This has major consequences for you and the village San Pedro de la Y.

The pesticides affects both banana workers and locals so they get sick. Very sick. Several of the pesticides used in Ecuador’s banana plantations are, according to the World Health Organization (WHO), carcinogenic or have similar serious side effects.

There is a lot of money in bananas in Ecuador, and very few have the courage to stand up against the powerful industry – not at all if you live and work in one of the country’s banana provinces.

DR (Danish national Radio), which is the reference for this post, has interviewed banana plantation workers, one of them is Efren Velez Cedeño. During the work of one the banana plantations, Efren was repeatedly bathed in the dust of pesticides. Now he is seriously ill with a liver disease and due to this unable to work anymore.

“It burns on the skin. Stings and claws. We never ever knew beforehand when it would be sprayed from the planes. Never. We had to hide under some plastic or a tiny roof”says Efren Velez Cedeño, who has worked in the plantations for 30 years, until he got sick.

This is not a view thatEduardo Ledesma, chairman of Ecuador’s banana exporters, believe to be true. According to him, no plantations in Ecuador use pesticides that are illegal in the EU: “If they are banned by the EU, I can assure you that they are not used here. And in that case, tell me the name of the product and the banana producer. Tell me who they are. If you’re a good journalist, tell me. My partners do not use pesticides that are banned by the EU.”

Whether or not people are affected by the pesticides when sprayed, Eduardo Ledesma states: “It’s a lie, it’s a lie because the workers get a message, nobody is so stupid. The pesticides come from planes with a GPS that controls where the pesticides will land. If sprayed over populated areas or in an irresponsible manner, it would happen that the banana workers were hit. It’s false information from competing countries that want to hurt Ecuador.”

The EU recognizes that aerial spraying can have serious negative consequences for human health, and seeks to avoid these consequences among EU citizens. Therefore, aerial spraying of crops with pesticides is discouraged unless exceptional conditions are present that would make the spraying an advantage instead of a risk for humans and the environment, according to DanWatch.

Nevertheless, European consumers risk buying bananas that are sprayed from the air with pesticides so dangerous that they risk making workers and their children ill, states DanWatch.

What is your thoughts?

If you want to read more about this matter, I highly recommend this article by DanWatch: https://danwatch.dk/en/undersoegelse/the-poison-comes-from-the-sky/

References:

https://www.dr.dk/nyheder/udland/i-ecuador-baade-lever-og-doer-man-med-de-giftige-bananer

They live and die by bananas

The current food supply chain is broken. Here is 5 reasons

Supply chains. We know surprisingly very little about most of the products we eat every day. Before even reaching the end consumer, products travel through an often-vast process flow of retailers, distributors, transporters, storage facilities, and suppliers. Here is five reasons the current system aren’t working:

1. Complexity – In the beginning, two centuries ago, the supply chain was a revolutionary idea. The idea was improve visibility and control of products through interorganizational exchange, as they moved from A to Z. But this old concept and the inherent technology can no longer support today’s production and supply cycles of products, which have become extremely fragmented, complicated process and geographically scattered across the globe. The effect is, that supply chains now is a blurred process that is extremely hard to manage for retail businesses, to effectively track and trace their products, and thereby paving the path for, e.g. fraudulent behaviour. The emphasis on providing cheap food has led to complex supply chains which are ripe for fraudulent activity, according to Prof. Chris Elliot.

2. Demand – We, as consumers, are very demanding when it comes to food. We want fresh bananas, juicy tomatoes, tasty mango all year long, no matter the season, we want it. And your local supermarket knows, and are trying to deliver out-of-season food all year long. It takes a lot of resources to ship non-local goods around the world, which from a sustainability stance, is very damaging.

3. Traceability – With more companies outsourcing for raw materials and distribution, having end-to-end visibility in a supply chain is an absolute necessity in order to ensure public safety, as well as brand protection. The information and data is an integral part of the product quality, so this information needs to provide an accurate picture of where your products are at any given time in your supply chain. A food traceability system is only effective if it can track and trace every component of every product, which the current system can’t.

4. Certifications – On the face of it, certifications on everything from fish to timber can be seen as progress, with a promise of better standards and the pursuit of sustainability. But what purpose are the certification labels actually serving? Can we assume that they are beneficial to producers? Do consumers understand what’s behind a certification label, as there seems to arise new certifications all the time? Today, the industry is more aware that certification alone isn’t addressing problems of low productivity, poor infrastructure and child labour, which continue to destabilise the supply chain. An example is Fairtrade, which is not that fair at all.

5. Transparency – With the requirement of only knowing one step back, and one step forth, actors in food supply chains have very little transparency of where their products come from. This, and other factors, leads to scandals like horse meat in cow meat, harmful pesticides in bananas, Chinese terrified of eating processed food and fraud with extra virgin olive oil.

References:

https://www.theguardian.com/sustainable-business/2016/mar/10/fairtrade-labels-certification-rainforest-alliance

https://www.businesswire.com/news/home/20120511005906/en/trace-Lack-traceability-product-integrity-%E2%80%93-profits

Interview – Audit and Control Specialist, Johnny Helt

You buy your food products every day from your favorite store. Bring them home for you and your family to eat. But what you might not be aware off (and rightly so), is all the hard work that has gone before the food product lands on the shelfs. Some are working to make sure there is transparency and traceability of the food we eat. I think it is important to know how the system works now, to know what can be done to improve the transparency and traceability.

That’s why I have made this interview blog post.

One of these great people that are are trying to make sure that the food we eat, are safe to eat, is Johnny, an Audit and Control Specialist. Johnny works at COOP Trading which is a procurement company for COOP in the Nordics. I had the pleasure of interviewing Johnny as a part of my data collection for my thesis. During my thesis process I could feel his personal commitment to make sure that the food products he handles, is investigated as best as possible with the tools at hand. So here goes!

Can you start with telling us a little about yourself?

My name is Johnny Helt and I am hired in Coop Trading as Audit and Control Specialist. My primary work are audit and control, but I also process and develop tools to make our control and audits more agile and more professional. I have a bachelor in Nutrition and Home Economics and I am ISO 9001 IRCA approved lead auditor.

What is quality control and auditing, and why is it important?

Quality control and audit are the same, just with other words. As I see it, audit is also control. Control is to ensure that processes comply with the legislation, specifications, procedures and specific demands from third parties. The importance of quality control and auditing is described as a deeper investigation of the specific product or processes to ensure that it comply with the demands, if not you will get products and processes that are out of control and the outcome will fail. That’s why control and auditing are important.

Great, but how did you first get involved with quality control and auditing?

I have always been dedicated to quality control; it is part of my “way of working”. I worked in DLG (Dansk Landbrugs Grovvare Selskab) for almost 10 years, with implementing HACCP and process control.

What are your current work in relation to quality control and auditing?

My current work are to evaluate and prequalify suppliers to Coop Group, doing supplier audits all over the world (app. 50 audits a year), developing new tools to make the work with audit and control more agile, delivering input to our team, handling complaints for all countries in Coop Group, handling recalls, and a lot more.

What is the most challenging aspect of your work with quality control and auditing?

The most challenging aspect of working with control and auditing are that “things” are not always as they seem to be, and you have to be very process orientated and get into the mindset of the supplier/producer, to see and evaluate the performance of the supplier. Especially when I do traceability on the audits, I feel I have to think like “a criminal”, how could I cheat and how would I do it…. Especially on high value products (Extra Virgin Olive Oil, meat, etc.)

Building on that, from your knowledge, what can be done to create greater traceability of food products and why?

Based on the European legislation the suppliers has to trace “one forward and one backwards”. Today we live in a world where “everything” is possible and I think that revising the demands to traceability should be developed, especially on products, which are high value products. So it would be a great idea to build a system, where you also could “follow the money”, and not only the product.

This was a short glimpse of just one role “behind the scenes” of getting your food products safe and sound to the dinner table. So, thank you Johnny for this insight, and if you want to read more on supply chains and how blockchain can change it for the better, read this post.

PS: I will follow up on Johnny’s “follow the money”, on how to use blockchain as a Supply Chain Finance tool for better transparency. Stay tuned!

© 2018 Kristoffer Just Petersen

Interview – “Mr. RFID”, Henrik Granau (Part 2)

Welcome to Part 2 of my interview with Henrik Granau, or more correctly, Mr. RFID. If you haven’t read Part 1, I urge you to do that, to get a good understanding of Henrik, RFID and its challenges. Simply click here!

If you already have read Part 1, I love that you did, then you know that this part is going to focus on the opportunities with RFID within food traceability/transparency. No more small talk, let’s dive into it!

And then turning from the challenges, what are the general opportunities with RFID?

There are a lot of application areas and certain Industries where there are still obvious opportunities, but in general I believe it is in the combination with other technologies we see the huge potential;

By using RFID you create a transparency on how goods, assets etc. are flowing through your operation and if you add to this detailed information on how the workflow is actually being performed, you have established the foundation of making better decisions in your organization.

When combining these operational data with other data (‘Big Data’) and Software Robots (Artificial Intelligence), you can create new services and business models (‘disruption’).

Almost everything within the area of ‘Internet of Things’ involve wireless communication with a device which has to be uniquely identified to make sense – hence “RFID” will be ‘pervasive’.   

Building on that, from your knowledge, what are the potential of RFID tags to create greater traceability of food products and why?

Internationally we already have a number of good cases in food traceability (Fish, livestock, vegetables) with RFID and combined with temperature sensors, we have established better cold-chain management. I believe that traceability within the supply chain can still be improved, but in general the technology is in place and we have the good cases with documented results.

The challenge is that we want the consumers to be able to have the complete history of each item available on their smartphone with one scan. If it’s RFID (NFC) or 2D barcode doesn’t matter so much – the challenge is to capture all the information during the product’s lifetime automatically which is achieved by using RFID on the transportation unit. For this to work, the unique item numbers which are packed has to be associated with the unique identifier of the transportation unit, and in some areas you will then have to add some evidence that the goods hasn’t been tampered with during transportation.

So creating greater traceability is possible with RFID, but you have other issues depending on the objectives; 1) for manufacturers to issue effective recalls, 2) for consumers to check the goods before consumption, 3) for protecting against fraud, etc.  

What potential do you see in a RFID/Blockchain combination to create greater traceability of food products, from your knowledge?

I am not a blockchain specialist, but I understand that what blockchain can add is a bulletproof distributed verification mechanism. So, when the issue is to have verification that a specific organization is guaranteeing that their part of the traceability data are valid, then you could use blockchain to lock a certain ‘hand-over’ transaction with some associated data. If RFID is used then this process could be done automatically at choke points. As an anti-counterfeit method.

I believe I can learn more about the potential with RFID/Blockchain by being kept updated on your progress.

If someone was interested in RFID, what would be a few things you would suggest to investigate further?

I will start with recommending to vist www.rfididk.org. This is RFID I Danmark’s website where we have tried to give a good introduction to RFID – especially through cases and slides from presentations held at our conferences.

As a special service the RFID I Danmark Association is offering that anyone for free can contact me with initial questions. You can mail me at henrik@rfididk.dk or you can call me at +45 21 832 835.

Thank you to Henrik, for his great insights into RFID and the opportunities. From this and what I learned from the RFID in Denmark conference, I see great potential for a RFID/Blockchain solution in supply chains. RFID will secure correct data inputs, which can’t be tampered or adulterated, which then are data inputs for the immutable blocks in the blockchain application.

One of the key takeaways from the conference, was the lack of adoption and their one-sided focus on RFID being a inventory solution, and not grasping a more holistic picture of what the tech can do. And I feel that, that is a general thing when investigating new technologies, that it is very one-sided and not trying to connect all the dots.

Thank you reading, have a great day!

© 2017 Kristoffer Just Petersen

What is Blockchain? And how does it work?

The Genesis

The blockchain technology was invented by a person under the alias Satoshi Nakamoto, to support the cryptocurrency Bitcoin (Nakamoto 2007). For the first time it was possible for many users to trade values with each other over the Internet without the need for a third party or intermediary – typically a bank – to verify the transaction. A blockchain is a ledger of facts, replicated across several computers assembled in a distributed peer-to-peer network. Or put simply, a chain of blocks (Beck 2017). Anyone participating in a blockchain can review the entries in it; users can update the blockchain only by consensus of a majority of participants. Once entered into a blockchain, information can never be erased (Nakamoto 2007: 2).

Blocks are an order of facts in a network of non-trusted peers, similar to how Uber’s technology intermediates between suppliers and consumers of transportation. Facts are grouped in blocks, and there is only a single chain of blocks, which then is replicated in the entire network. Each block has a reference to the previous block, through the hashing cryptography that links the blocks. Some of the nodes in the chain create a new block with pending facts. They, in the case of bitcoin miners, compete to see if their local block is going to become the next block in the chain for the entire network, called proof of work. Then this block is sent to all other nodes in the network. All nodes run a check on that to see if the block is correct, then add it to their copy of the chain, and try to build a new block with new pending facts (Nakamoto 2007: 3).

But it has gradually become clear that the technique has much broader applications than just acting as the backbone of Bitcoin. One of the key elements is the ledger, which is a database of the content of the blockchain – whether it is bitcoin transactions, intelligent smart contracts, or something else (Boye 2016).

Blockchain is a type of electronic ledger created to ensure that once a party transfers a digital asset, he cannot transfer it to anyone else, prevent double spending. Unlike other ledgers, blockchain is owned by its participants, and decisions about what it records are subject to participant consensus.

Recording accuracy is ensured by duplication: every participant has a copy of the ledger. Discrepancy-resolution mechanisms ensure that all copies reflect an identical history. Though permissions can be managed with a fair degree of control, by default any permitted participant can view all transactions. Thus together with immutability, notarization and assured provenance, transparency is a core blockchain attribute (1).

There are many ways of applying a blockchain technology, in short, either as a public blockchain, a private blockchain, or as a consortium blockchain. A public blockchain is a blockchain that anyone in the world can read, through which anyone in the world can send transactions, and include transactions if they are valid, i.e. Bitcoin (Buterin 2015). A fully private blockchain is a blockchain where write permissions are kept “centralized” to one or few institutions, i.e. banks (Buterin 2015). A consortium blockchain is a blockchain where the consensus process is controlled by a pre-selected set of nodes. An example, is a consortium of 15 financial institutions, each of which operates a node and of which 10 must sign every block in order for the block to be valid. A consortium blockchain can be altered to fit the need of the one using it, ex that the R3 consortium want different “rules”, than the Hyperledger consortium or Ethereum Alliance (Buterin 2015; R3; Hyperledger).  

Public blockchains can offer advantages that a private blockchain and consortium simply cannot, and vice versa. The take-away with the different ways of adopting blockchain technology, in relation to COOP Trading, is what they want to gain from a blockchain solution, who should be a part of it, who should have read and write permissions and what data can’t be shared. One must have a high due diligence in order to research the possibilities and challenges with a blockchain solution.     

Factbox:

“A block is the ‘current’ part of a blockchain which records some or all of the recent transactions, and once completed goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. There is a countless number of such blocks in the blockchain. The blocks are linked to each other (like a chain) in proper linear, chronological order with every block containing a hash of the previous block.” (Investopedia)

Finally, blockchain isn’t simply a secure collective database. In addition to transactions, it also records and executes simple programs.

The idea of pre-programed conditions, interfaced between users, and then broadcasted to everyone, is called a smart contract. A contract is a promise that signing parties agree to make legally-enforceable. Proponents of smart contracts claim that many kinds of contractual clauses can be partially or fully self-executing, even self-enforcing, or both. The aim of smart contracts is to provide security, which is superior to traditional contract law and to reduce other transaction costs associated with contracting (Tapscott 2016: 105-108). Buterin explains it as: “(…) then we can cut costs to near-zero with a smart contract.” (Parker 2016).

Blockchain smart contracts may also influence, or be influenced by, product movements. For instance, a positive QA test indication can release a part for assembly. However, today that role is played by ERP systems. Blockchain technology doesn’t necessarily add value in such traditional operations management tasks (1).

Factbox:

“An asset or currency is transferred into a program and the program runs this code and at some point it automatically validates a condition and it automatically determines whether the asset should go to one person or back to the other person, or whether it should be immediately refunded to the person who sent it or some combination thereof.” (BlockGeeks)

  1. http://www.sdcexec.com/article/12247812/supply-chain-finance-on-the-blockchain-enables-network-collaboration

© 2018 Kristoffer Just Petersen