Leveraging Blockchain Technology to Advance the Transportation Industry – Cryptopolitan
The transport industry is undergoing a huge transformation, mainly driven by technological advances. As the world becomes increasingly interconnected, companies are looking for more efficient ways to move goods and people around the world. Enter blockchain – an innovative distributed ledger technology that promises to revolutionize the way we think about transportation operations.
We can use blockchain technology to create secure, immutable data records that you can share between multiple parties in real time. The blockchain has the potential to reduce paperwork, automate processes, strengthen security and cut costs associated with tracking shipments and payments. Furthermore, blockchain-based solutions can improve visibility across supply chains and enable better collaboration between transport companies and their customers.
Industry issues fuel blockchain adoption
Blockchain technology is revolutionizing the shipping and commercial transport industry as it seeks to provide document and transaction transparency in supply chains. With its inherent security features, blockchain offers an unmatched level of security compared to traditional IT-based logistics systems. As a result, the blockchain promises to make freight transport more efficient, agile and innovative.
Freight tracking companies around the world are researching ways blockchain can be used in their respective sectors as the technology continues to evolve and become a viable platform for the trucking industry. As a result, many potentials will be unlocked to help us achieve greater efficiency than ever seen on our roads and highways.
Payment disputes and delays
Disputes and delays are common problems for truck drivers and carriers. The slow pace of traditional paper-based systems can lead to delays, as well as disputes when it comes to payments from customers. Blockchain-enabled applications can automate the process of recording, tracking and verifying each transactionso that information can be quickly shared between different parties and ensure that affected parties pay on time. As a result, the technology has the potential to significantly reduce the amount of time and money spent on resolving disputes, as well as improve customer satisfaction.
Costly administration and processing fees
The transport industry relies on paper transactions, leading to high processing and administration costs. A study by IBM and Maersk tracking a shipping container of flowers from Mombasa to Rotterdam is a shocking reminder of how ineffective this system is. The process involved over 200 communications between 30 organisations, which highlighted the complexity and high costs of paper-based transactions. Digital transformation can bring huge benefits in terms of finances and operational efficiency.
Data transparency
Another issue facing the transport industry today is data transparency. Blockchain technology provides a secure way for truckers to access real-time data about their shipments, such as location and status updates.
The blockchain makes it easier for drivers to track shipments and keep customers informed of their progress.
Opportunities blockchain brings to the transportation industry
Logistics companies face enormous pressure to keep up with changing consumer needs, which is why technologies like blockchain are so appealing. Blockchain in transportation is an emerging technology that could revolutionize how goods are shipped by drastically reducing shipping costs and eliminating various inefficiencies.
Blockchain has the potential to solve decades-old industry problems, such as long dispute resolution times, low administrative efficiency levels and poor and uncertain tracking of orders. But as customer expectations continue to rise, businesses must stay ahead of the curve by incorporating new technology and adapting their services as needed.
Improve the delivery process
Blockchain presents a number of advantages for supply chains, primarily cost, speed and convenience. Through its decentralized operation, blockchain streamlines communication between partners and allows greater traceability of goods. As a result, trading partners can gain direct access to monetary resources without incurring additional costs previously assigned to intermediaries.
Blockchain technology enables peer-to-peer (P2P) transfers, including international payments and digital currency settlements, faster than traditional financial services.
Transparency in the supply chain
Blockchain technology is an increasingly popular solution for tracking and facilitating the exchange of goods in supply chain management. Using hash functions, a type of cryptographic fingerprint, users can add data to a private or public blockchain after successful contract settlements and product exchanges. This data comes with authorship details, timestamps and other relevant information, while giving anyone with access to the blockchain an opportunity to track its progress.
Through the implementation of blockchain-based solutions across supply chains, customers gain unprecedented transparency, giving them insight into product movements and transactions in a safe and secure environment.
Automation through smart contracts
Smart contracts are digital, self-executing documents stored and replicated on the blockchain. Developers code them with all the relevant information for a financial transaction that users can trigger.
Smart contracts can enable transport companies to receive payment almost instantly as soon as they confirm ownership of goods or services. In addition, they eliminate the need for manual manipulation of money, ensuring accurate and fast transactions.
Tracking systems
RFID tag-based tracking systems have been around for quite some time, but recent advances in blockchain technology make these solutions even more effective. By combining RFID tags with sensors, companies can ensure optimal product quality throughout their supply chains and maintain comprehensive, verifiable provenance.
By monitoring every step of the delivery process with such systems, companies are less likely to experience fraud than ever before – this is particularly useful within the shipping industry, where all parties must maintain authentication and integrity at all times.
Real-time monitoring
IoT devices have transformed the logistics industry, enabling businesses to reduce costs while optimizing routes and vessel capacity monitoring. By streaming data to the blockchain, analysts can combine IoT information with relevant external data, such as traffic or weather reports, to create more intelligent algorithms that determine appropriate delivery routes. The transparency offered by the IoT also facilitates accurate capacity forecasting: thanks to blockchain, participants can monitor changing transport availability in near real time, allowing them to adjust their plans accordingly and achieve greater efficiency in the transport of goods and services.
Real use cases of blockchain technology in the transport sector
The introduction of blockchain technology in the transport industry is already beginning to produce concrete results. Here are real-world examples of how it’s changing the industry:
How FedEx uses the blockchain
With an expansive global infrastructure and years of experience in the shipping industry, it is not surprising that FedEx will become a major player in advocating the use of blockchain technology. As a result of their interest, the company has integrated a blockchain-based chain feature that provides much higher levels of traceability and trust. Furthermore, FedEx has continued to push for greater adoption by joining BiTA, an organization dedicated to standardizing the use of blockchain in transportation applications. In addition, their pilot program lays out how users should store data in the chain so that customers can maintain even greater trust in their process.
How Ford Motor Company uses the blockchain
Ford is pioneering blockchain technology in the automotive industry to ensure that cobalt, an essential ingredient for electric car batteries, is ethically sourced. By keeping a ledger of when cobalt is mined and tracking its whereabouts afterwards, Ford can control the supply chain and ensure they minimize environmental damage from mining.
Other automotive giants such as Volvo, Porsche and MOBI (a non-profit mobility alliance) have since joined Ford in developing blockchain-based supply chain standards to further promote ethical practices in the industry. Ford’s efforts prove that the industry can achieve sustainable sourcing through innovative technologies such as blockchain.
How Walmart uses the blockchain
Walmart has consistently proven to be among the leaders in supply chain management, so it is no surprise that they are interested in blockchain technologies. By leveraging Hyperledger Fabric, Walmart has created a more transparent and reliable food tracking system, from tracking mangoes in the US to tracking an E. coli outbreak among leafy greens. In Canada, Walmart looks to resolve data discrepancies between invoicing and payments thanks to the help of blockchain technology. They have also developed an automated system to manage accounts payable for third-party freight suppliers, streamlining what had previously been a complex transport process.
How Slync.io uses the blockchain
Slync.io is revolutionizing the shipping industry by providing a comprehensive platform that uses blockchain technology and artificial intelligence (AI) to provide retailers, manufacturers and suppliers with up-to-date information on all aspects of their global shipments. Shipping activities can be tracked in real time, revealing potential problems before they become disasters. In addition, shippers can deploy automated workflows with increased accuracy and efficiency, reducing costs and minimizing time delays. With Slync.io’s powerful combination of blockchain and artificial intelligence, it’s easier for businesses to maintain control over their supply chain.
How Blockfreight uses the blockchain
Blockfreight uses innovative blockchain-based technologies to revolutionize traditional shipping by reducing waste and inefficient payments. The company’s software platform uses a decentralized blockchain that streamlines payment processing and creates an encrypted platform for communication between buyers and sellers. By leveraging the current digital infrastructure of the blockchain, Blockfreight not only helps those involved in supply chain transactions save time and optimize operations, but also provides an additional layer of security in value exchange between multiple parties.
Blockchain in Transport Alliance (BiTA)
The Blockchain in Transport Alliance (BiTA) is a unique initiative to advocate for the use of ledger technology in transport operations. Leaders in the logistics industry, such as UPS, FedEx, Uber Freight, Union Pacific Railroad and project44, have come together to communicate ideas and discover the full potential of blockchain for efficient transportation systems. BiTA works with these companies to discuss common approaches for implementing this technology and educate professionals on how blockchain implementation can revolutionize current models. This alliance is a significant milestone for the industry towards understanding how the transport industry can use this innovative technology to benefit the transport business.
Conclusion
The potential of blockchain technologies is undeniable. It has already created an opportunity for companies to form collaborations and alliances to explore new ways to streamline operations while creating more secure, transparent supply chains.
Blockchain has benefited various industries with tremendous success, and its continued development opens many doors for innovative solutions. At the same time, companies must understand that blockchain technology is still relatively new and requires due diligence before it is implemented in any capacity. Nonetheless, as more major players join the fray, we are likely to see a wave of developments that will significantly benefit supply chain processes.
