How Blockchain is Changing the Logistics Industry

by Manoj Kumar Digital Marketing Analyst

Blockchain is one of the most talked-about emerging technologies with numerous applications across many industries but the question is can it optimize and modernize the fragmented and inefficient logistics industry?

How Does The Supply Chain Industry Function?

Let's imagine you decide to purchase a new computer; however, in this case, let’s also imagine you’re concerned about the working conditions of the factory where the computer was assembled or maybe you have concerns about the quality of a specific component inside the computer. Right now, there is no easy way to find out where your computer came from or how it was made. This complex web of relationships which includes providing the materials, manufacturing the components, assembling the parts, and delivering the computer to market is known as the supply chain.

The Impact of Blockchain Technology on the Logistics Industry

1) Blockchain technologies are predicted to have a massive impact throughout many industries including the logistics industry. Also, it is best known for its role in various cryptocurrencies such as bitcoin. The technology is widely applicable to many problems in numerous industries.

2) Supply chains are becoming increasingly complex with many players involved, requiring large numbers of contracts, payment tracking, and communications.

3) Blockchain is one such technology predicted to help better connect many players and handoffs within the industry bringing efficiency to the many disjointed elements in any one specific supply chain.

4) Broadly speaking blockchain technology describes a distributed, highly secure platform ledger or database where everything from money, stocks, bonds, intellectual property, deeds, music, and even votes can be stored and exchanged without powerful intermediaries.

5) Blockchain in logistics will likely be used as a distributed ledger which could provide better transparency throughout the lifetime of a shipment.

6) Blockchain data is decentralized, unable to be changed once created thus creating a more secure and transparent information pathway that would follow a shipment from origin to destination.

7) Due to this decentralization, it is unlikely a system could be disrupted due to a localized failure or attack. The implications could mean quicker processes, lower transactional costs, and more secure and reliable data exchange within the industry.

8) However, for this to happen there needs to be a unified set of standards across the industry, and that is where the blockchain and transport alliance comes in.

9) Blockchain and transport alliance is a forum for promoting education and encouragement to develop and adopt blockchain technology in the trucking industry and logistics.

10) Blockchain and transport alliance’s goal is for members to participate, discuss, create and adopt industry standard uses of blockchain applications and to provide clarity and directions for the development of blockchain technology in the logistics and supply chain industry, in a manner that creates efficiency, transparency, and foster trust.

Conclusion:

To sum up, we’ll state that it is undeniable that blockchain technology is a very disruptive technology that has transformed numerous industries across the globe. With the same impact, blockchain technology is changing the logistics industry in the most phenomenal way possible.

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Created on Mar 31st 2022 10:06. Viewed 251 times.

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