Can Blockchain Secure Supply Chains?

Cyber security and information security has become essential in the manufacturing sector.

Since 2019, there has been a 62% global increase in ransomware (158% increase in North America) with over 40% of manufacturing firms suffering a cyberattack last year. Cyberattacks on SolarWinds, Bombardier, and most recently, Colonial Pipeline have demonstrated that these threats put critical and confidential data at risk, as well as jeopardize supply chain operations and production.

Technology is moving at an unprecedented rate, and many security measures that manufacturers have relied on for years are not designed to identify or protect from this new age of cybercrime. Cyberattacks such as Colonial Pipeline show that threats that were once thought to be many years away are now an everyday reality. This has opened the eyes of many companies who are concerned about their exposure to malware from suppliers as well as whether or not they could unknowingly spread malware across their complex supply chains.

With that being said, direct damage caused by cyberattacks is just part of the problem. Other areas of concern include scrutiny from regulators such as the Department of Defense, which include potential penalties for not having the Cybersecurity Maturity Model Certification (CMMC).

Implementing blockchain paves the way for companies to create more secure supply chains and prevent the growing incidence of cybercrime. Blockchain offers a different path toward greater security by reducing vulnerabilities, providing strong encryption, and effectively verifying data ownership and integrity. The principal advantage of blockchain is its use of a distributed ledger. Transactions are recorded across every node in the network, making it difficult for attackers to steal, compromise, or tamper with data. With the use of blockchain’s collaborative consensus algorithm, it can watch for malicious actions without the need for a central authority.

Blockchain for the entire supply chain is daunting, and it requires an ecosystem approach. The more participants there are in the blockchain network, the more secure the supply chain will be. Large manufacturing enterprises are deploying blockchain solutions, but many of their midsize suppliers, retailers, shippers and distributors don’t have the technical resources to connect into these networks. For that reason, midsize enterprises should pick a specific product line or — even better — a trusted partner, to get started.

BlockSpaces is that trusted partner. BlockSpaces Connect lives beneath the application layer of the blockchain technology stack and hides the complexities associated with integration into these complex networks and gives increased security. Our workflow automation platform utilizes a library of pre-built integrations to connect everyday business applications with multiple blockchain networks to provide data visibility and efficiencies beyond individual, disparate systems and information silos, thus providing enhanced data security from cyber attacks.

There is an ongoing need for companies to protect both intellectual property and customer information. As data breaches keep happening and regulatory requirements become more stringent, organizations must remain vigilant and proactive in hardening their cybersecurity posture. Using blockchain as a strategic priority is an important step in keeping a safe and secure supply chain.

We are interested in hearing some of the challenges you may be facing with cybersecurity in the manufacturing sector and would welcome the opportunity to have a conversation on how BlockSpaces Connect can address these challenges.

Please reach out to our team info@blockspaces.io.