Is Blockchain Technology the Solution to the Logistics Sector?October 5, 2018
When data is centralized and controlled by a particular set of individuals, there’s a great possibility of corruption and information hoarding. With the massive growth of digital age, P2P networks have strived at lowering the information asymmetry. For instance, torrents are one of the classic examples of a P2P network system wherein it has become very challenging to prevent the flow of data across a giant network of people. You see: blockchain technology is a leeway of this.
There are major reasons why blockchain technology are known to be extremely secure.
- Every transaction is decentralized and visible to all people.
- The blocks are created on top of one another that makes it complicated to change later.
The use cases and distinctions of blockchain outside the world of finance are evolving and very promising. Nonetheless, the potential they provide in the existing space of Information Asymmetry is great. Logistics sector is hindered along with a massive knot of suppliers, warehouses, transporters, distributors and retailers.
With the complex nature of transactions included, blockchain technology provides a massive potential in logistics.
- Contracts are complex and are often ignored when managing with vendors. Blockchain technology will allow a foolproof contract, by which the contract will be performed among two parties the moment the transaction is done.
- Audits use big effort and need examination through piles of data in the logistics sector. And it’s simple to skip deceitful data midst that. However, provided the nature of blockchain technology, changing a block in between is difficult. Even if somebody tries to breach the data, the coding is totally different from the original one, which raises a red flag
- Did you know that asset tracking is one of the huge challenges in the world of logistics these days? Along with the progressively outsourced containers, trailers, pallets and more, the vendors have a hard time monitoring the period an asset spent at various entities. Blockchain technology establishes visibility of asset through the chain.
- Ultimately, blockchain technology will lead to improved transparency throughout the chain. You see: the end consumer can see every node in the supply chain and will have visibility regarding the damages or delays which happen on the way. For instance, a customer purchasing shoes from eBay can track if the shoe manufacturer in Vietnam had actually acquired Egyptian Cotton fabric.
If you believe that blockchain technology in the logistics sector is just at a theoretical level, you’re wrong. In fact, the biggest supply chain plays around the world are trying their hands at the technology to obtain the first mover advantage.
Meanwhile, if you’re seeking for a blockchain platform to use for your next supply chain management, XinFin might be a good option. XinFin is famous as the hybrid blockchain tech firm dedicated to global trade and finance. Their XDC protocol is developed to support smart contract layers, price stability, KYC/AML layer through its hedge pool of current cryptocurrencies like Ripple XRP, Litecoin LTC, Bitcoin cash BCH, and Bitcoin BTC on trade tradefinex.org platform.
With the logistics sector becoming intricate and disorderly, visibility is the king. And blockchain tech appears to be the ideal recipe for that.