How is Blockchain Technology Being Used to Improve Global Supply Chains?

The Reading section of the IELTS exam can be quite challenging, especially when it comes to understanding complex topics. One topic that has gained significant traction recently is “How Is Blockchain Technology Being Used To …

Blockchain Supply Chain

The Reading section of the IELTS exam can be quite challenging, especially when it comes to understanding complex topics. One topic that has gained significant traction recently is “How Is Blockchain Technology Being Used To Improve Global Supply Chains?” Given the rising importance of blockchain in various industries, it’s prudent to anticipate that this topic could appear in future IELTS exams. In this article, we will explore a detailed example of an IELTS Reading passage on this subject, complete with questions, answers, and explanations, to help you master this part of the test.

Reading Passage

Blockchain Enhancing Global Supply Chains

Blockchain technology, best known for underlining digital currencies, is reshaping global supply chains. With its decentralized, immutable ledger, blockchain offers unprecedented levels of transparency and efficiency.

Blockchain Supply ChainBlockchain Supply Chain

Benefits of Blockchain Integration

One significant advantage of blockchain in supply chains is enhanced traceability. Companies can track products from their origin, ensuring authenticity and reducing the risk of counterfeit goods. For instance, Walmart uses blockchain to monitor its food supply chain, enabling it to trace contaminated products quickly.

Additionally, blockchain improves transparency. All transactions are recorded on a public ledger, reducing fraud and discrepancies. This transparency builds trust among all stakeholders, from manufacturers to consumers. IBM’s Food Trust blockchain network is an exemplary model, helping monitor food safety from farm to table.

Challenges and Future Potential

Despite its potential, integrating blockchain into supply chains comes with challenges. The technology is still evolving, and widespread adoption requires significant investment in infrastructure and training. However, companies that embrace blockchain early stand to gain a competitive edge.

Experts predict that as the technology matures, smart contracts—self-executing agreements coded into the blockchain—will automate many supply chain processes. This automation will further reduce delays and errors, fostering a more efficient global supply chain ecosystem.

Reading Questions

Question Type: Multiple Choice

  1. What is one of the major advantages of using blockchain in supply chains?

    • A. Low cost
    • B. Enhanced traceability
    • C. Decreased efficiency
    • D. Limited transparency
  2. According to the passage, which company uses blockchain to ensure food safety?

    • A. IBM
    • B. Walmart
    • C. Microsoft
    • D. Tesla
  3. What is one challenge mentioned in the passage regarding blockchain technology?

    • A. Lack of potential
    • B. High environmental impact
    • C. Significant investment needed
    • D. Insufficient transparency

Question Type: True/False/Not Given

  1. Blockchain technology is primarily known for its application in food safety.
  2. The passage suggests that smart contracts will be unnecessary in future supply chains.
  3. Investment in blockchain technology is necessary for companies aiming for long-term benefits.

Question Type: Matching Information

Match the following information with the respective features of blockchain technology:
7. Ensures product authenticity
8. Reduces the risk of counterfeit goods
9. Builds trust among stakeholders

  • A. Public ledger
  • B. Enhanced traceability
  • C. Smart contracts

Answer Key and Explanations

  1. B – Enhanced traceability: The passage clearly states that one major advantage of blockchain in supply chains is “enhanced traceability.”

  2. B – Walmart: The passage mentions that “Walmart uses blockchain to monitor its food supply chain.”

  3. C – Significant investment needed: The passage discusses the substantial investment required for integrating blockchain technology.

  4. False: Blockchain technology is known primarily for digital currencies, not specifically food safety.

  5. Not Given: The passage does not suggest that smart contracts will be unnecessary; it states the potential for automation in the future.

  6. True: The passage states that companies making early investments in blockchain technology will gain a competitive edge.

  7. B – Enhanced traceability: Ensuring product authenticity directly ties to enhanced traceability.

  8. B – Enhanced traceability: Reducing the risk of counterfeit goods is linked to enhanced traceability as well.

  9. A – Public ledger: The passage mentions that the transparency of a public ledger builds trust among stakeholders.

Common Errors and Tips for IELTS Reading

Common Errors:

  1. Misinterpretation of Key Information: Students often misunderstand the main idea of a passage due to complex vocabulary or sentence structures.
  2. Not Skimming Properly: Skimming is crucial to get the gist of the passage quickly.
  3. Incorrect Matching: Misidentifying the information to match correctly.

Tips for Improvement:

  1. Practice Reading Complex Texts: Regularly read articles and journals on varied topics to get used to complex information.
  2. Enhance Vocabulary: Focus on improving vocabulary to better understand context and nuances.
  3. Efficient Skimming and Scanning: Learn to skim for general ideas and scan for specific information.

Vocabulary for the Passage

  1. Immutable (adj.) /ɪˈmjuː.tə.bəl/: Unchanging over time or unable to be changed.
  2. Traceability (n.) /ˌtreɪ.səˈbɪl.ə.ti/: The ability to trace something, especially the origin or expiration of products.
  3. Discrepancy (n.) /dɪˈskrep.ən.si/: A lack of compatibility or similarity between two or more facts.
  4. Counterfeit (adj.) /ˈkaʊn.tə.fɪt/: Made in imitation of something valuable with the intention to deceive.

Grammar Focus

Complex Sentences

Complex sentences, which contain at least one independent clause and one dependent clause, are commonly used in academic texts. Example:
“Despite its potential, integrating blockchain into supply chains comes with challenges.”

  • Structure: [Dependent Clause] + [Independent Clause]

Advice for High IELTS Reading Scores

  1. Consistent Practice: Dedicate specific time regularly for reading practice.
  2. Mock Tests: Take full-length IELTS reading tests to familiarize yourself with the exam format and time constraints.
  3. Review and Analyze Mistakes: Understanding where you went wrong is crucial for improvement.

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