What is State Zero Problem

Following the globalization initiated by containerization of logistics, supply chains might be due another revolution by the integration of the disruptive blockchain technology that addresses the current issues with the management of complex global supply chains. Blockchains are distributed digital ledgers that require no central authority to operate while offering a tamper-proof and transparent history of each transaction from the very beginning. Distributed nature of these ledgers ensure that every participant of the supply chain has access to trusted data. The industry has already begun experimenting with blockchain integration into their operations. For the majority of the organizations, however, these experiments stay in proof-of-concept stages or small pilot studies. In this chapter, the authors discuss the supply chain characteristics that make blockchain integration favorable, lay the groundwork for how blockchain can be used for supply chain operations and how it has been used so far.