What are smart contracts, and how do they automate processes in supply chain management?
Smriti GuptaBegginer
Resources & Suggestions
Mains Answer Writing Latest Articles
On: February 22, 2025
Comments:
0
Indo-US Relation: Areas of Cooperation & Conflicts
Key Areas: Defense, technology, trade, energy, and regional cooperation. Key Areas of Cooperation 1. Defense and Security Transition from buyer-seller to co-production and technology sharing. India as a Major Defense Partner (MDP) and inclusion in STA-1. Access to advanced technologies, ...
On: February 22, 2025
Comments:
0
भारत-अमेरिका संबंध: सहयोग और संघर्ष के क्षेत्र
मुख्य विषय: भारत-अमेरिका संबंधों की मजबूती, विशेषकर रक्षा, प्रौद्योगिकी और क्षेत्रीय सहयोग में प्रगति। सहयोग के प्रमुख क्षेत्र 1. रक्षा एवं सुरक्षा सहयोग भारत और अमेरिका के बीच रक्षा संबंधों का विस्तार। प्रमुख रक्षा साझेदार (MDP) का दर्जा और STA-1 ...
On: February 22, 2025
Comments:
0
India’s Disaster Management
The article discusses the growing tensions between the Centre and states regarding disaster relief funding in India. It emphasizes the need for a transparent and equitable disaster management framework. Key Disaster Threats India Faces Increasing Frequency of Extreme Weather Events ...
Smart contracts are self-executing contracts with the agreement’s terms directly written into code, operating on blockchain platforms. They automate processes by enforcing and executing contract terms when predefined conditions are met.
In supply chain management, smart contracts streamline and secure transactions and operations. Firstly, they automate transactions by triggering payments and transferring ownership once conditions are fulfilled. For example, payment to a supplier is automatically released upon delivery confirmation, eliminating the need for intermediaries and speeding up the process.
Secondly, they enhance real-time tracking and transparency. All parties can access real-time data on the status of goods, including location and condition, enabling quick identification and resolution of discrepancies.
Thirdly, smart contracts provide enhanced security. Stored on a tamper-proof blockchain, all records and transactions are immutable and auditable, reducing fraud and errors.
Additionally, smart contracts improve efficiency and reduce costs by automating tasks like order processing and inventory management, minimizing human errors, and lowering administrative expenses.
Lastly, they ensure compliance and build trust. By automatically enforcing regulations and agreed-upon terms, smart contracts ensure all parties adhere to standards, fostering trust among supply chain participants.
In summary, smart contracts bring automation, transparency, security, and efficiency to supply chain management, transforming business operations and collaboration.
Smart contracts are self-executing digital agreements that are built on blockchain technology. They automate processes in supply chain management in the following ways: