Most nations are competing for economic stability, military superiority, and improved living standards among other reasons. Increased technological advancement has contributed to the increased rivalry between countries with China and the US being the best example of two states that are competing for superiority. In this paper, the risks posed by Blockchain technology to supply chain visibility will be addressed. As the name suggests, Blockchain technology is an economic transaction digital ledger programmed to record financial transactions and others valuable information which is linked using cryptography (Iansiti and Lakhani 04). Supply chain visibility is the availability of components, parts, or commodities in transit to be traced from the producer to the final destination with the aim of strengthening and improving the supply chain by making information readily accessible to all involved parties.

Although the blockchain technology poses numerous benefits, some of these advantages such as anonymous trust, streamlined and fast transactions may make it hard for states to track sales which possess different risks to countries. The first risk is the sale of sensitive data which may threaten the security of a nation. In most cases, attacks on a nation are mainly conspired by individuals who have support from the country’s citizens who have access to sensitive data and they sell this information on the black market which has been made easier through blockchain. Additionally, the sale of drugs and weapons has been made possible by this innovation, and it negatively affects a country’s stability.

Blockchain also encourages illegal importation and exportation between countries since people can easily purchase or sell products anonymously and effectively (Fincham 01). The first disadvantage of this move is the reduced tax for the affected states since most people who use this method evade from paying taxes which in return reduces a government’s earnings. Governments depend on taxes to finance its projects, which means that reduced taxation will hinder project implementation. For instance, if China fails to collect enough revenue to fund its mega-project, then it might be forced to seek other sources of finance which might be expensive or extend the time limit for completing the project.

Moreover, such illegal exportation through blockchain technology may harm a state’s internal market in cases where imported goods are cheaper compared to those offered internally. In such cases, most firms are forced out of business since they are unable to compete over those that have imported products to the market illegally. Additionally, those firms that use this technology to acquire cheap raw materials can produce and sell their products and services at a lower price. This move puts some firms at a disadvantage and are forced to take up measures such as shut down some of their branches, reduce wages, or lay off employees which in the long-run affect a country’s economy. In other cases, customers can use this technology to directly purchase cheap products globally a move that reduces local firms’ sales and revenues. Additionally, blockchain technology fails to specify standards to be followed during purchases which have adverse effects on a state’s economy (Palamariu).

In conclusion, it is evident that blockchain may significantly affect several logistic activities which at the long-run jeopardize a country’s economy. It is therefore essential for different stakeholders such as government, suppliers, investors, and customers among others to develop ways to regulate the use of blockchain technology with the aim of enhancing a fair and competitive market. Different states should come together to moderate the use of blockchain technology and prevent instances of illegal trade. They should implement strict international policies aimed at curbing the risks mentioned above.