Commodity Supply Chains Will Benefit Hugely From Blockchain: Blythe Masters

Former JPMorgan Head of Commodities Blythe Masters is of the view that blockchain will soon increase the efficiency of the commodity supply chains.

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Former JPMorgan Head of Commodities Blythe Masters is of the view that blockchain will soon increase the efficiency of the commodity supply chains.

Blockchain to solve the inefficient problem of supply chains

While addressing a private London Metals Exchange (LME) conference in London, Masters pointed out that supply chains are incredibly complicated and inefficient. She, however, believes that blockchain is the solution for that.

Streamlining the supply chains has been a problem for companies over the past few years but things could be changing, with the launch of IBM’s Food Trust is a sign that things are about to change for the better.

Masters, who was a former exec at JPMorgan launched her own cryptocurrency company called Digital Asset Holdings. Her firm is currently working on blockchain-based solutions for the metals industry as she believes the industry is in dire need of a shakeup.

The LME has yet to move forward with the other financial trading platforms. The platform set metals prices for the Western financial system. It also fixes prices for industrial metals in addition to setting the metal prices.

Talking about the complexities of supply chains, Masters pointed out that the metal and mining industry is affected the most. According to her, this is due to the several operational and commercial practices which still remain inefficient and outdated.

All these combine to result in the omission of critical data, security flaws, increased expenses, and other problems.

The blockchain technology, however, could play a role in solving that problem. The technology can be used in tracking products from virtually all sectors of the economy. It could be used in tracking the supply chains for foods, metals, and other materials.

She stated that blockchain could be used in the transfer of critical trade documents, bills of lading, letters of credit, and similar documents. Because of the function of blockchain, the exchange could be done securely and confidentially, she added.

She has always maintained her belief about blockchain technology. Earlier this year, she stated that the application of the technology is by no means limited to the world’s financial market infrastructures.

The technology could be used throughout financial services, even beyond the capital markets and beyond financial services into all the other industries that are looking to increase the efficiency of their workflow method.

She pointed out that not everyone is of the view that blockchain tech is ready for mainstream implementation. However, blockchain is set to benefit legacy structures by simplifying bureaucracy, while also increasing confidentially, and boosting productivity.

In the industrial metal markets, Masters noted that establishing both a firm chain-of-custody and a smooth pricing mechanism would be for the benefits of everyone involved.

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