How Blockchain is Helping Redefine the Future of the Economy in the Product Lifecycle
In the context of the global economy, traceability is becoming a fundamental pillar for ensuring safety, transparency, and trust among parties involved in commercial processes. In an era where globalization predominates and supply chains extend on an international scale, the importance of traceability cannot be underestimated. Particularly, Europe has set clear objectives and precise deadlines to address CO2 emissions associated with products during their lifecycle. Supermarkets like Aldi are adopting a proactive strategy through the “VISION 2030” plan to achieve the “Zero Carbon” goal. This plan includes implementing strict policies requiring accurate emissions data from their suppliers, with decisive measures against companies that do not adequately monitor the emissions related to their products. According to a study conducted by NielsenIQ, about 72% of consumers consider transparency important or extremely important. Consequently, they prefer to buy from brands that show transparency regarding their purpose (+15%) and ingredients/supply chain (+17%) in the coming years.
Additionally, in the field of manufacturing, by 2024, Europe is expected to approve a law that will require every garment sold in the EU to have a digital passport through NFC tags or QR codes by 2030. Indeed, Vanilla Rocket, an Italian start-up pioneering in the blockchain sector, is helping companies prepare for the change by offering solutions like “Phygital twins,” physical products connected to the blockchain system.
Ensuring the provenance and authenticity of products and services not only protects consumers from fraud and counterfeiting but also supports environmental sustainability and promotes ethical business practices. For example, Lavazza, a giant in the coffee industry, has begun tracking the production of their “La reserva de ¡Tierra!” edition thanks to Algorand technology, reaffirming their ongoing commitment to sustainability and transparency.
However, traditional traceability systems often present limitations in terms of efficiency, security, and data integrity. Paper records and centralized databases are vulnerable to human errors, manipulation, and cyber-attacks, compromising the trust and reliability of traceability processes.
In this context, blockchain stands out as an innovative and promising solution, offering a distributed and immutable ledger that allows transactions to be recorded securely and transparently. It eliminates the need for central intermediaries and prevents data manipulation. In fact, it is sometimes called a “trustless” network, not because business partners do not trust each other, but because they do not need to. According to an IBM report, implementing blockchain-based solutions can reduce response times and administrative costs, improving the overall efficiency of the supply chain.
In conclusion, the importance of traceability in the future of the economy is undeniable, and blockchain presents itself as a fundamental tool to effectively and efficiently address traceability challenges. With its ability to provide a transparent and secure supply chain, blockchain promises to revolutionize not only data management but also business models and global economic dynamics. In an increasingly interconnected world dependent on trust and transparency, blockchain emerges as a catalytic technology for a new era of traceability and trust in the global economy.
Aldi Italia, “LINEE GUIDA” https://www.aldi.it/it/azienda/oggi-per-domani/linee-guida.html
Aldi Italia, “ZERO CARBON” https://www.aldi.it/it/azienda/oggi-per-domani/zero-carbon.html
The Food Institute, “ Report Shows Modern Consumers Demand Transparency from Brands” https://foodinstitute.com/focus/report-shows-modern-consumers-demand-transparency-from-brands/
Lavazza Francia, “Un viaggio nel cuore dello sviluppo sostenibile del caffè” https://www.lavazza.fr/fr/business/la-reserva-de-tierra-cuba-sustainable-coffee
IBM, “Vantaggi della blockchain” https://www.ibm.com/it-it/topics/benefits-of-blockchain
M. Attaran, A. Gunasekaran, “Applications of Blockchain Technology in Business” https://www.researchgate.net/publication/336054880_Applications_of_Blockchain_Technology_in_Business_Challenges_and_Opportunities
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