Why TradeLens failed?

The recent shutdown of TradeLens, a blockchain-based digital supply chain platform developed by IBM and Maersk, has generated significant discussions within the logistics industry.

While it's essential to acknowledge the pioneering work of IBM and Maersk, which has undoubtedly inspired further innovation in blockchain technology, it's equally important to examine the lessons learned from this initiative's failure.

"TradeLens was a groundbreaking initiative that aimed to revolutionize the supply chain and logistics industry by promoting transparency, efficiency, and security in global trade."

The platform provided real-time data access and collaboration opportunities for various stakeholders, including shippers, carriers, and port operators.

"The non-success of TradeLens can be attributed to some of the inherent disadvantages of private blockchains, which can limit the scope of collaboration and adoption among industry stakeholders."

Centralized control, limited access, and concerns over data privacy and neutrality have hindered the growth and success of the platform.

"Embracing permissioned public blockchains can pave the way forward for more sustainable and efficient supply chain solutions."

"Standardization across large enterprises can be a complex and challenging endeavor, as different organizations often have unique processes, systems, and requirements."

"Consequently, implementing a one-size-fits-all approach to blockchain technology might impede adoption and limit the benefits of the platform."

"To overcome these challenges, it is crucial to develop a flexible architecture for the underlying blockchain platform that allows easy configuration and customization to suit the needs of each enterprise."

"The falling through of certain blockchain initiatives can often be traced back to their business models, with high costs of operations and the formation of consortiums posing significant barriers to adoption."

"These traditional approaches can lead to considerable upfront investments and ongoing expenses, making it difficult for enterprises to justify the adoption of blockchain technology."

"In contrast, modern blockchain solutions that adopt a pay-per-use model and utilize permissioned public blockchains significantly lower the barriers to entry."

"By understanding and adhering to the principles of decentralized data control, rapid development and deployment, cost-effective scalability, and flexibility and interoperability, the future of blockchain technology in supply chain management can be both sustainable and efficient."