Vanguard Magazine

www.vanguardcanada.com DECEMBER 2018/JANUARY 2019 13 Blockchain in the form of data. Every time a new fact is proven to be true and is added to the database, it simultaneously checks and vali- dates all the previous facts that exist in the database. To prove a new fact, consensus algorithms drive global agreement across all computers in the network. These con- sensus algorithms can be considered the 'gatekeepers' of new information. Ulti- mately, they decide fact versus fiction, and they operate by incentivizing good behav- iour in the network. What's more, since these facts exist simultaneously in millions of places at once and are constantly being validated, they're very difficult to alter. In short, on a blockchain, the data is immutable, difficult to tamper with, trans- parent and accessible to all trusted partici- pants in the network. This fosters trust and accountability in the digital world. Supply chain tracking Blockchain provides the ability to track and immutably record information related to the movement of goods across every node in a supply chain. From receiving raw goods to manufacturing milestones and inventory movements, each granular activity can be time-stamped, validated and permanently stored in the decentralized ledger. Thus, blockchain lets an organiza- tion see into its supply chain in real time at the most granular level. The data associ- ated with an asset can be viewed and traced all through the chain, back to its origins. Blockchain-enabled supply chains are no longer just theory. A well-known mining company has been piloting a blockchain platform to track gems from the moment they're dug from the ground to guarantee authenticity and make sure they aren't from conflict zones. Another prominent case is when Walmart began working with IBM in 2016 to implement a blockchain solution to trace the origin of the produce sold in its stores in response to food safety scares, such as E. coli outbreaks. While the food indus- try may be far removed from the military, it provides a clear illustration of the power of this technology. It used to take Walmart six days to track where its lettuce came from; now it takes the company two seconds. For the defence sector, decentralized led- gers offer a solution that can establish the provenance of every circuit board, proces- sor and software component throughout the product's entire life cycle. An immu- table record establishing the identity and place of origin of components and assets can be written to a new transaction block upon creation, confirmed by all nodes on the network and securely stored in a de- centralized ledger. (See figure 1) The example provided at the beginning of this article shows how knowing the exact provenance of products can help address issues of counterfeit and pirated goods. Tracing a faulty or counterfeit component back to the vendor, and having immutable proof that this vendor is responsible for sourcing it, is just the beginning. In a more advanced, integrated and fully interoper- able blockchain-based supply chain system in the future, this vendor could be given an immutable reputation associated with Design firms log design iterations of components Distributors log the sale of components to system integrators A permanent and traceable record is created for the transfer of assets between owners Manufacturers log model and serial numbers of every component produced System integrators log the allocation of components to specific asset assemblies (aircraft, vehicles, etc.) Figure 1

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