Blockchain Technology in Logistics- An Era to Begin
Don’t get yourself misinformed by the downfall of Bitcoins. Industry veterans in financial domain like Jamie Dimon as well as giant institutions like Goldman Sachs say that blockchain is here to stay, maybe not so much the coins and tokens. Evidently, blockchain technology is slowly creeping into every business, and a quick Google search would lay down the facts that blockchain technology can be used in every industry on this planet. Logistics is one such industry where blockchain technology is sure to become a game changer. There are a number of problems within the logistics and
transport industry; including transparency in supply chains with many end consumers, complex processes with intermediary freight brokers and a lack of accountability that occur within the often complex and opaque process. Moreover, fictitious pickups account for almost 10 percent of all cargo thefts, amounting to an estimated USD 150,000,000 losses to the logistics business each year. And that is just the fictitious pickups, overall cargo thefts are costing the industry anywhere between USD 15 billion to USD 30 billion a year.
Due to the complexity and lack of transparency of our current supply chains in the logistics companies or logistics providers, there is wildly growing interest in how blockchain applications might transform the supply chain and logistics industry. Since every transaction is recorded on a block and across multiple copies of the ledger that are distributed over many nodes (computers), it is highly transparent. Every block links to the one before it and after it. There is not one central authority over the blockchain, thereby being extremely efficient and scalable. Ultimately, blockchain can increase the efficiency and transparency of supply chains and positively impact everything from warehousing to delivery to payment. Chain of command is essential for many things, and blockchain has the chain of command built in.
Global delivery giant FedEx is working with the Blockchain in Transport Alliance (BiTA) – a working group of leading freight, shipping and logistics companies coming together to develop and implement blockchain technology among everyday operations. Let’s see how Blockchain grows into Logistics and becomes mainstream.