Reverse logistics – the process of moving goods from consumers back to manufacturers for reuse, recycling, or disposal – is a critical component of the circular economy. Traditionally, this process has been plagued by inefficiencies, high costs, and lack of transparency. Blockchain is simply a distributed digital ledger technology – that is, a record of transactions. They are designed in such a way that it is secure, transparent, and tamper-proof. Blockchains can contain smart contracts- these are automatically executed processes that do not require an intermediary. For example, when a return is scanned in, a smart contract might automatically refund a consumer – if the associated barcode is the same as what was initially sent – without the need for a person to do this. Blockchains are immutable because data recorded on a blockchain cannot be altered or deleted without obvious detection.
By creating secure, tamper-proof records, blockchain enables logistics firms to track products throughout their lifecycle, ensuring accountability and reducing fraud.
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