Experiment name
Theory
Smart contract
Traditional contracts: These are written agreements between two or more parties, outlining rights, obligations, and consequences. They rely on trust, legal systems, and intermediaries like lawyers for enforcement.
Smart contracts: Smart contracts are computer programs that are hosted and executed on a blockchain network. Each smart contract consists of code specifying predetermined conditions that, when met, trigger outcomes. By running on a decentralised blockchain instead of a centralised server, smart contracts allow multiple parties to come to a shared result in an accurate, timely, and tamper-proof manner.
Smart contracts have the potential to revolutionise a wide range of industries, including supply chain management, financial services, and healthcare.
IBM, Honeywell, and Walmart are three of the world's leading companies that are using smart contracts in real-world applications.
A comparative analysis of smart contract use cases across IBM, Honeywell, and Walmart
| Company | Use Case | Challenge | Smart contract solution | Benefits |
|---|---|---|---|---|
| IBM | IBM Food Trust | Ensuring food safety and traceability | Smart contracts track food provenance from farm to table | Reduces food waste, enhances consumer trust |
| IBM Blockchain Platform | Automating financial transaction | Smart contracts execute financial transactions securely and efficiently | Reduces costs, improves transaction speed | |
| IBM Hyperledger Fabric | Managing patient data and medical records | Smart contracts maintain patient data privacy and facilitate secure record sharing | Enhances patient care, improves healthcare outcomes | |
| Honeywell | Honeywell GoDirect Trade | Automating invoice processing for aerospace and defence customers | Smart contracts automate invoice creation, payment approvals, and payment execution | Reduces processing time, improves cash flow |
| Honeywell Connected Worker | Managing contract lifecycle for connected worker solutions | Smart contracts track contract terms, automate notifications, and enforce compliance | Enhances contract management efficiency, reduces disputes | |
| Honeywell Traceability Solutions | Tracking goods movement from suppliers to customers | Smart contracts track goods location, status, and ownership | Improves supply chain visibility, reduces risks | |
| Walmart | Walmart Food Safety and Traceability | Ensuring food safety and reducing food waste | Smart contracts track food provenance and identify potential contamination risks | Enhances food safety, reduces food waste |
| Walmart Blockchain Freight Pilot | Optimising freight routing and reducing fuel consumption | Smart contracts track freight location, optimise routes, and automate payments | Improves logistics efficiency, reduces fuel costs | |
| Open-source blockchain contribution | Promoting open standards and collaboration | Smart contracts are open-source,contributing to industry standards | Enhances blockchain ecosystem development, promotes interoperability |
We have developed a usecase on Secure and Transparent Pharmaceutical Supply Chain with Blockchain
Problem: Medicine transport is complicated and can expose patients to fake drugs or spoiled medicine, costing money and harming people.
Providing a tamper-proof record of every transaction: This allows all parties involved in the supply chain to track and verify the authenticity of pharmaceuticals, from manufacturing to dispensing.
Enhancing traceability: With blockchain, it is possible to trace the origin of a pharmaceutical product and identify its location at all times. This enables authorities to quickly identify and isolate counterfeit drugs and respond to product recalls.
Improving temperature control: Blockchain can be used to monitor the temperature of pharmaceuticals in real-time, ensuring that they are stored and transported within safe limits.
Identifying potential shortages: By analysing real-time inventory data, potential shortages can be predicted and addressed proactively. This allows manufacturers to adjust production schedules and distributors to optimise stock allocation.
Preventing overstocking: With accurate insights into demand and supply, overstocking situations can be avoided, reducing unnecessary costs and potential waste.
Streamlined communication: Blockchain-based platforms enable efficient communication between manufacturers, distributors, healthcare providers, and regulatory authorities, ensuring timely information exchange and coordinated actions.
Faster decision-making: With access to comprehensive and up-to-date data, stakeholders can make informed decisions faster, responding to surging demand with agility and adaptability.