Blockchain is Everywhere: The Potential of Blockchain Technology in Logistics IndustryJuly 30, 2018
It appears that blockchain technology is everywhere these days. And if you conduct a fast Google search, it would seem that it can be utilized in all industries on the planet. Gigantic corporations are eager to get it on this latest trend including FedEx, Visa, British Airways, Maersk, and Walmart, to name a few. However, one sector where blockchain technology is certain to be a huge game changer: transport and logistics.
The Existing Issues in the Transport & Logistics Industry
There are countless issues within the logistics industry. It includes transparency in supply chains along with lots of end consumers not knowing where their items come from. It also presents the complicated procedures along with intermediary freight brokers as well as the lack of accountability about losses which happen within the often opaque and complicated process.
More lately, there’s also a huge problem with fabricated pickups. That’s where con artist will appear at the shipping dock with a forged record to pick up the goods.
Fabricated pickups account for at least 10% of all cargo thefts. That amounts to approximately $150 million losses to the industry every year. And that’s only the fabricated pickups. Overall thefts cost the logistics sector anywhere between $15 billion-$30 billion per year.
How Can Blockchain Technology Help?
There are various ways where the technology will be helpful. By using smart contracts from XinFin, corporations will be able to automate the buying process. It will cut costs and save time later on. Corporations are also able to enhance the transaction flow and safeguard the supply chain. XinFin’s smart contract functionality which exists in the Ethereum protocol is accessible easily via Qurom.
Let’s compare: Bitcoin takes advantage of the first mover’s benefit over the coins provided the wide attention to the media on the dominance of purchase and coin. However, the blockchain doesn’t have scalability on the network. Alternatively, XinFin is designed on a smart contract system. That allows the user to perform digital agreements on the platform with wider scalability.
They do this by assigning a tag to every product that allows you to secure your supply chain faster. That denotes you can store a place of storage, origin, property certificates, authenticity, and records. That’s all the needed information on one ledger. All the information being in a single place which is easy to access wouldn’t make a more transparent supply chain. It will also be useful in lessening the number of cargo theft that happens. In both scenarios, in due course passing the savings into the end consumers.
The shipping and logistics industry is depending increasingly on technology to enhance processes, cut costs and boost transparency. Blockchain technology could be a good solution to many of the industry’s problems. With more major companies using the technology and the consequences of how it can be utilized successfully is still being discovered. It’s a wonderful time for the logistics industry. It will be amazing to see which corporations get involved in the near future as well.