Is Blockchain the Solution to the Irish Border Problem?
The widespread use of blockchain technology has sparked numerous discussions about its potential applications in various industries. Initially, blockchain served as a decentralized ledger system for cryptocurrencies such as Bitcoin. However, as the technology evolved, it has been explored for its potential to revolutionize supply chain management and other areas.
Variations of the Technology
The conception of blockchain as a niche idea spurred a myriad of variations, each with different levels of safety, decentralization, and sophistication. Over time, the term “blockchain” evolved to represent a broad spectrum of ideas and applications. Consequently, it has become a hyped and often misunderstood concept, touted as a panacea for all kinds of business and political challenges.
Hammond’s Musings on Blockchain
Chancellor Philip Hammond recently mentioned the potential use of blockchain technology to solve the Irish border issue. However, he admitted that he was not an expert on the subject, leaving many questions unanswered regarding the specifics of how the technology could be implemented.
Blockchain Use in Supply Chain Management
To gain insight into how blockchain could potentially be applied to the Irish border issue, we can look at examples of companies that have successfully implemented the technology in supply chain management. London-based startup Provenance used blockchain to track the journey of tuna from the ocean to the supermarket. Similarly, IBM and Maersk’s joint venture, Tradelens, utilizes blockchain to share digital certifications and provenance information about cargo, accompanied by electronic hardware like RFID tags.
Potential Blockchain Application for Brexit
If Theresa May’s Chequers Agreement is approved, adopting the EU’s “rulebook” on goods could lead to the creation of a blockchain documenting British goods’ compliance with EU standards. However, even if such a blockchain were implemented by March 2019, it would not fully address the challenges that will arise at the Ireland-Northern Ireland border post-Brexit.
Challenges of Implementing Blockchain
While blockchain-based certifications might be more efficient than paper-based ones, they could still introduce delays in the supply chain. This is a significant concern, as even minor disruptions could have far-reaching implications for the just-in-time supply chain system across the Irish border.
In conclusion, while blockchain technology holds promise in various applications, implementing it to manage the Irish border post-Brexit comes with its own set of challenges. As discussions continue, it is essential to critically evaluate the practicality and effectiveness of blockchain in addressing complex political and logistical issues.
