Blockchain Poised to Transform Freight and Logistics
Online shopping has disrupted retail in a big way, and it doesn’t take any sort of inside knowledge to see just much it has turned the retail world on its head. Now, some experts are saying that blockchain is going to have an equally transformative effect on logistics and freight.
Even though it has only started creating a buzz recently, it gives a lot of the world’s biggest industries something that they’ve been missing. This technology is built on a decentralized network, so no particular party actually owns the data. It is instead stored on a public ledger that can’t be changed later as each block of it is verified by the other blocks in the chain.
Most companies use centralized, private software systems. Take the example of a bank. To send someone money, you have to go through your bank and theirs to verify the transaction. With block chain, on the other hand, certification is automatic and doesn’t depend on a centralized entity. This explains in part why bitcoin rose meteorically from $900 to more than $7,000 in a year.
New Platforms Could Overcome Longstanding Challenges
How does this apply to logistics and freight? Think about how packages have to pass through several centralized hubs on their journey from the supplier to the end consumer. It’s almost like a relay race that takes place between retailers, carriers, shippers, brokers and manufacturers.
Blockchain solutions like ShipChain can help this process, dealing with issues like broker markups, stolen goods, fraud, communication problems, and order fulfillment operation. There is a huge amount of potential here, and many of the problems currently plaguing logistics could be solved in one fell swoop with the right blockchain platform in place.
Is blockchain about to join game-changers like Amazon, the iPod and Netflix? This could well be the year that logistics and freight sees a huge shake-up.
This blog post was based off of an article from the Huffington Post. View the original here.