Blockchain technology, beyond its obvious scope in the finance sector, also holds the potential to transform other industries, ranging from fashion to automobile. With the force of increasing digitization in the times of a pandemic, blockchain has been adopted for many unique use cases. One which hasn’t garnered much attention yet is that of the impact it can create in the chemical industry.
Ways in Which Blockchain can Change the Chemical Industry
Innovation is the most important need of the chemical industry at a time when it is constantly evolving and the market is getting bigger and more and more players are being involved every day. Using blockchain, a chemical company can create new and interesting solutions for its customers. For instance, manufacturing a certain product requires collaboration from different parties, and blockchain can assist in community building without the interference of a middleman for validation. Furthermore, data sharing can facilitate more efficient and cost-friendly work.
Tracking and Tracing
Chemicals have forever been counterfeited and no direct solution has yet been proposed to combat this problem. Blockchain—as it has proven in the case of other industries—can be used to effectively verify the integrity of a product by helping to trace it back to its original manufacturer. Presently, any such approach to tracking products is very complex and time-consuming because of the intricate nature of the chemical supply system.
Many steps like transportation, regulations, packing, and retail are involved which render the entire process difficult. Good management of all these steps can not only be very time consuming but also very costly. A lot of companies lose huge amounts of money over problems in any one of these steps. Blockchain can create tracking and tracing solutions which can reduce the intricacies of these processes to simplicity and save a lot of time and money and also eliminate fraud and displacement.
New Trading Solutions
The chemical community needs to adopt smart trading solutions so that it can keep up with a very competitive market in which product differentiation is somewhat difficult. Blockchain can provide the chemical industry with new ways to engage with the customers.
A great example is that of the ZrCoin Network. A group of Russian scientists developed a new method of producing Zirconium dioxide by waste materials, thus eliminating the traditional mining process. The innovators opted for a trading market on a blockchain platform called ZrCoin instead of raising funds for a new chemical plant. On this platform, Zrcoins—which represent the amount of the physical-chemical—are traded by investors. After the investments reach saturation, the investors are paid for assets they hold. Furthermore, the original team remains in full ownership of the business.
This type of solution not only eliminates third parties and hence makes trading more efficient and scalable, but it also opens doors for innovation—which, in this case, was the sustainable production of a chemical that otherwise had to be mined.
Improving 3D printing
The biggest problem that the artists, whether they are musicians or filmmakers, face today is that of copyright infringement. Similarly, 3D printing faces the problem of illegal sharing of blueprints—originally an intellectual property of the company which produces it. This problem—as in the music industry—can be solved by implementing blockchain technology. Thus, an open market would solve the problem of illegal sharing to a great extent.
Validating Employee Skill Sets
The chemical industry is an area that requires a particular skill set. If any certificate fraud is committed by those who apply for a job in an area, it can lead to drastic consequences. Blockchain can be used to validate the qualification of the employees in chemical plants.
Expanse: Helping You Build New Bonds Through Blocks
The potential of blockchain technology in the chemical industry remains heavily unexploited and unexplored even at a time when blockchain is being increasingly adopted elsewhere. To uncover the hidden benefits of this technology in the chemical sector, Expanse allows you to create dApps for practical blockchain-based solutions. Based on Ethereum, it gives you uncompromised security and high scalability for building new bonds through blocks.