​The words “blockchain” and “immutable” often appear in close proximity to each other, because blockchains are supposed to be paragons of immutability.
 
But what does that really mean?
 
The Meriam-Webster definition of immutable is: “not capable of or susceptible to change.”

​This definition could apply to:

• Your boss.
• Your husband.
• Your wife.
• Your noisy neighbor
• Your luck.

 


 ​Does it apply to blockchain technology?
​
The answer is yes. More or less.
 
Blockchains are certainly not susceptible to change.  Once a transaction has been validated and accepted, cryptography makes it very difficult to alter the entry. As the blockchain matures and more “blocks” are added, it becomes even tougher to meddle with the contents.
 
But it’s not impossible. For example, last year Accenture caused a stir among blockchain aficionados when the consulting firm announced that it created a prototype edit function for blockchains. The chameleon hash (sounds like a new Asian dish) function is meant to be used when a blockchain “has to be edited under extraordinary circumstances.”
 
Purists claim that inserting trap doors in this seemingly impregnable technology defeats the object of the exercise. And they have a point.
 
In the commercial world, however, many enterprises are nervous about the idea of an unalterable database.  For instance, there are heavily regulated financial services companies that want the leeway to edit a blockchain in response to regulatory change. They argue that such actions will be truly exceptional, and typically apply to permissioned blockchain systems that are managed by administrators. 

By Sherree DeCovny, Co-Founder and Research Principal

​Confusion comes with the territory when tackling an innovative project or new, highly technical subject matter. It’s often difficult to know where to begin. One could argue the best approach is to start anywhere. Just start.
 
Blockchain, a completely new paradigm for recording and sharing data, is no exception. The financial services industry has already spent more than $1 billion on proofs of concept (POCs), and 2017 could be a make-or-break year where the rubber meets the road. Some projects will move into production, and others will likely fall by the wayside.
 
Many believe that the next wave of blockchain innovation will occur in supply chain management, a function that has gained in strategic importance and which lends itself to the unique benefits of the technology. The supply chain industry lags financial services, but many blockchain POCs have been launched in an array of areas including apparel, biopharma, commodities, food and trade finance. It’s very early days, but the industry has started to make progress.
 
So has Chain Business Insights. As a research and analysis firm specializing in blockchain in supply chain and trade finance, Chain Business Insights is committed to monitoring these initiatives and keeping our members abreast of the trends. Our first eBook, Blockchain Meets Supply Chain: Rewiring Business Operations for the Digital Age, has won plaudits. We’ve published some blogs about some real and potential implementations of blockchain, as well as what is under the hood of the technology. We initiated our presence on the speaking circuit, and other publications, including an eBook, are in the pipeline.
 
Most recently, we did a benchmark survey to gauge the awareness and level of knowledge of blockchain among supply chain professionals and to determine how advanced implementation plans are.

By Ken Cottrill, Co-Founder and Research Principal ​

​Supermarket shelves are barometers of consumer demand for food, and they are pointing to a sunny future for fresh foods and an uncertain outlook for processed product.
 
In this shifting competitive climate, blockchain technology will help the industry to reshape supply chains to meet customers’ changing demands.

A recent Wall Street Journal article maintains that the shift “started several years ago, but its impact on big food makers is intensifying now because of added pressure from retailers.” Supermarkets are allocating more shelf space to fresh food, prepared hot meals and local product, exacerbating “a drumbeat of bad news” for packaged-goods companies, said the Journal.
 
A Nielsen consumer analyst characterized the plight of packaged goods as “death by a thousand cuts.”
 
The realignment is forcing many established brands to rethink their market strategies. For example, Unilever announced recently that it is looking to exit the margarine business as part of an overhaul of its food and beverage operations.