Supply Chain CEO: Ethereum Blockchain Won’t Work for Even One Company

In one of the most recent episodes of CoinGeek Conversations, an online video series hosted by Charles Miller that aims to create awareness and correct misinformation about digital currencies and blockchain technology, a highly experienced blockchain-based supply chain CEO speaks with an aspiring blockchain client and developer as to which blockchain is most suitable for her needs. 

Founder and CEO of the Norway-based enterprise blockchain platform UNISOT Stephan Nilsson has successfully revolutionized his company’s seafood supply chain by building it on Bitcoin SV (BSV), while co-founder and CEO of UK-based online jewelry platform MarketOrders Sukhi Jutla is currently exploring her blockchain options as she believes blockchain technology is “a far more trustworthy and efficient way to do a process that’s already existing.” The jewelry CEO shares her plans of providing transparency and minimizing transaction fees due to the many middlemen in her supply chain by merging blockchain technology and digital chips or RFIDs.

“I think that there is going to be a lot of people maybe thinking about how you could utilize these digital chips to basically replace the paper certificates, as well as using blockchain, for the chip to talk back to the blockchain to verify its provenance and where it is in the supply chain. Maybe it could be used also as a digital certificate so that you can actually see exactly what’s the components of this particular piece. And with the chips being in metal jewelry like gold or silver, if at any point in time that particular item is melted down into scrap metal, then that would actually talk back to the blockchain say it’s like destroyed or there’s no more information being encoded into it, so you know that this piece no longer exists,” Jutla says.

When asked, Jutla states that she has been eyeing Ethereum to build her innovative platform on because it is popular with users and its blockchain “seems stable.” This makes Nilsson laugh as it seems Jutla is one of the people who have been misinformed when it comes to Ethereum. And Nilsson is quick to correct this misconception based on his firsthand experience when he was looking for a blockchain to build his seafood supply chain platform on, which is also one of the main reasons he chose to build on the Bitcoin SV blockchain.

“There is a huge community in Ethereum. There are a lot of solutions out there, but none of them are in production. No one has actually been able to actually run this in production using all the functionality of the Ethereum blockchain because it’s simply not scaling. You can do like 10-15 transactions per second, and it doesn’t work for one company even. So the problem in Ethereum is that every company that is using it now is building  second and third tier solutions on top of that to try to mitigate that it doesn’t scale. They have a blockchain somewhere down there, but they’re actually building a solution up here, solving all their problems,” Nilsson explains.

Jutla is quick to say that she is open to changing her mind after learning that Nilsson built his supply chain on the Bitcoin SV blockchain and it being “the only one in production” that can accommodate the jewelry supply chain’s needs due to it having a stable protocol and being infinitely scalable to handle low-cost micropayments. Nilsson further advises Jutla to read more about Bitcoin SV and watch episodes of the Theory of Bitcoin so she can learn from Bitcoin creator Dr. Craig S. Wright and Money Button founder Ryan X. Charles about the technology and theory behind the original Bitcoin blockchain.