One of the largest and most comprehensive trials of blockchain technology for global supply chains has successfully ended with a new Australian-developed blockchain security architecture from TBSx3 which has the potential to raise global supply chain security to a military grade.
The TBSx3 system uses military-grade 44-alphanumeric-character security cryptography, compared to the six-digit public cryptography which up until now has been commonly used.
The new TBSx3 benchmark was successfully used on an 8,100km global road-and-sea supply chain stretching from the wine-growing Coonawarra region of rural South Australia to the port of Qingdao in north-eastern China, which ended this week.
Partners included DP World Australia, DB Schenker, Hamburg Sud and Australian wine producer IUS, which exports seven product lines into the rapidly growing Chinese wine market.
KPMG advised TBSx3 on the trial and verified the custodial handovers for the integrity of the product on the 8,100km land-and-sea journey. Furthermore, KPMG simulated the customer at the end of the trial by receiving, validating the product and checking if the system could potentially detect duplicates.
Ron Koehler, CEO, DB Schenker Australia and New Zealand, said, “In a globalised world, the safety and security of supply chains for the medicines you buy, the food you eat, the parts that are used for your cars and the planes you fly in cannot be taken for granted.
“Supply chain security affects everyone – consumers, companies, communities.
The Hon. Arthur Sinodinos, Minister for Industry, Innovation and Science, added, “Blockchain is an exciting technology with great potential for Australian businesses and SMEs. It promises to reduce costs, create new market opportunities and transform industries.
“Importantly the technology provides a new opportunity for Australian exporters and their customers to verify the authenticity of their products, protecting the reputations and brands of both Australia and Australian business.”
The successful completion of the trial between Australia and China is the first of a planned series with multiple partners which will “simultaneously test the robustness of TBSx3 blockchain technology for every custodial link in global supply chains and also verification protocols for both bulk product and individual items for retailers and consumers at the end of the chain,” according to TBSx3’s Chairman, Anthony Bertini.
“In terms of the numbers of partners simultaneously involved and the challenges posed for resolution of integration with multiple existing proprietary security systems we believe this can be developed to become a new security benchmark.”