Digital invoicing startup Tradeshift CEO Christian Lanng countered “hype” over blockchain’s role in supply chains Wednesday, September 19, telling CNBC the technology “wasn’t ready yet.”
In an interview at the World Economic Forum in Tianjin, China, Lanng highlighted the use cases for blockchain in areas such as identity and certifications, but argued supply chains were too much of a challenge for the technology in its current state.
“If you want to have authenticity, if you want to know where it is sourced, that it is done in a responsible way [...] [blockchain] is a great technology to manage that kind of flow and be sure of the integrity,” he told the network, adding:
“The problem is just it's not a high-performance technology.”
Talk of the promise of enhancing supply chain performance using distributed ledger technology has become commonplace across the global economy this year. As Cointelegraph continues to report, multiple global heavyweights are considering and working on implementing blockchain-based solutions to legacy infrastructure.
For Lanng, however, the optimism is premature. “Whenever people say blockchain, I think what they're really saying is they would like to connect things digitally,” he continued, noting:
“I don't think blockchain is a mature enough technology yet to carry that ... I also want to be a little bit cautious for some of the hype.”
Lanng also highlighted cost hurdles and the difficulty of creating an “at scale” blockchain deployment.
The innovation has nonetheless already seen some success, as a joint shipping supply chain product from IBM and Maersk received heavy praise from logistics partner CEVA as a “big step forward” in August.
More recently, UK’s leading port operator, Associated British Ports (ABP), signed an agreement with digital logistics enabler Marine Transport International to develop blockchain use for port logistics.