Blockchain Is 'World-Changing', Says U.S. Congressman During Supply Chain Hearing

Two United States House Subcommittees held a hearing today, May 8, on how blockchain tech can be used in supply chain management.

Republican Congressman Barry Loudermilk noted his happiness that the topic of blockchain was finally coming up for discussion at a government level.

Using blockchain to record every step of a supply chain in any industry would hypothetically reduce costs and increase speed, the hearing noted.

Cyber security division director at the Department of Homeland Security Dr. Douglas Maughan reported that one of the ways blockchain tech could streamline supply chain management at a government level is with the US Customs and Border Protection in terms of "Shipping, logistics, and customs."

The development of quantum computing could mean that a sophisticated enough system could break blockchain's cryptographic systems if there is not more development on the blockchain side, Maughan added.

"Without these common standards, uncertainty will prevent the large scale investment that's needed to blockchain a success in the supply chain."

The takeawaysMultiple positive ideas from the hearing included the possibility that blockchain could reduce fraud coming from Chinese companies using American products without licenses in order to undercut domestic businesses.

Republican Congressman Randy Hultgren brought up the notion of a blockchain system giving citizens "New tools for individuals to finally assert basic property rights when governments deny the rule of law or access to the legal system."

Yesterday, the world's second largest software company Oracle announced it would be offering blockchain products, including those suited for supply chain management for pharmaceutical companies.

Last month, electronics giant Samsung reported it would be looking into using blockchain for managing its global supply chain.