Blockchain Technology and the Steel Industry:
The Steel Industry is one of the major industries that faces problems with compliance. Since steel is primarily used in construction and development, tracing its origins is essential to ensure that it does not fail at a crucial point, causing casualties and endangering the public. Blockchain is one of the newest methods being used within the Steel industry in order to ensure compliance and reliably track the provenance of raw materials as well as the finished product.
Problems in the Steel Industry:
Steel components are at the core of every large structure built today. From skyscrapers to bridges, steel lies at the heart of every cities infrastructure. If these components fail, the structure itself is liable to fail, thus endangering the health and safety of the people who use it. In order to ensure quality and compliance in the steel industry, tracing the origins of both the raw material and the end product is essential.
Sub-standard steel leads to the inevitable failure in the structures which it is meant to support. The onus of responsibility for this rests on the shoulders of all the parties involved including, the manufacturers, importers, suppliers, designers and constructors.
Quality tracing on paper is currently used to track the origins of steel supplies. However, this method causes a host of problems including the authenticity of certificates that are handed over at each station of the supply chain. Due to the large number of people involved, transparency of the steel’s origins and its quality becomes very difficult. This makes it impossible for the people who are using the steel to control its quality as described on the certificates. This is where blockchain comes to the rescue.
Blockchains’ use in the Steel Industry:
Blockchains’ inherent immutability, which makes it resistant to tampering and deletions once the data has been filed, as well as its distributed ledger system goes a long way towards increasing the transparency in the manufacturing and quality control aspect of the steel industry.
The required data can be recorded and verified at each step of the manufacturing process, before being stored as a series of interlinked blocks. These blocks then serve as concrete proof, or a roadmap of the provenance and quality of the steel, right from its origins, through the manufacturing process and finally its delivery to the constructor.
This data cannot be altered or deleted at any stage of the process without automatically altering later blocks in the chain. This is also impossible to do without the complicity of all the peers in the network.
This makes it impossible to pass off substandard materials as having been manufactured by a recognized company, which is one of the main ways in which inferior quality steel enters the market. Blockchain also makes it possible for those whose job it is to verify compliance to be able to accurately track the process easily and confidently.
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