This is part 2 of a two-part series.
Blockchain technology — a software-based distributed ledger system — is emerging as the building block of trust for manufacturing value chains. As described in Part 1 of this series, blockchains can establish immutable and trustworthy records and transactions among value chain participants without the need for a middle man, significantly reducing the rising “trust tax” in manufacturing value chains.
In addition to lower costs and increased agility, we believe blockchain manufacturing will create entirely new business models (see Figure 1). Traditional value chains will be deconstructed as more players will be able to flexibly plug in and out of the manufacturing process, such as “borrowing” parts of a factory on short notice for only as much production capacity as they need at a given time. Further, niche players such as micro-factories or small 3-D print service providers will be able to expand their markets and serve more customers.