Last Updated on: 21st November 2023, 08:43 pm
Our world changes so rapidly that modern people are now witnessing new revolutionary advancements and approaches. Blockchain is a digital technology of the future that is nowadays used in many spheres of our lives. It has already filled the entertainment market and is present in the best casino without swedish license, and besides this, in healthcare, personal identity security, government, and logistics.
So, blockchain has significantly modernized logistics by increasing its efficiency and implementing all operations in a more advanced way. So let’s see how much influence blockchain technology has on the field of logistics.
What does blockchain in logistics mean?
Simply put, a blockchain is a decentralized ledger that consists of a chain of blocks where certain information can be stored. When talking about logistics, this public digital system allows tracking of all movements of cargo transportation in a real-time record. This way transport companies can enhance their service, ease the shipping process, decrease the time for delivery, and find faster delivery routes. This technology doesn’t only save time but also prevents retail and transport companies from making expensive mistakes.
The blockchain is currently applied in these cases:
- Authenticity verification.
- Tracking ownership.
- Provenance of assets.
- Managing supply chains.
Blockchain underlies tamper-proof mechanisms and cryptographic algorithms which makes each block of information linked to another block forming a decentralized ecosystem where it is impossible to alter any set of data without changing the whole chain. Here the data is stored permanently, which explains why the blockchain has found application in logistics.
Why is blockchain beneficial for logistics?
Blockchain is a modern phenomenon, but it has already become an indispensable part of implementing key operations not only in logistics but also in many other spheres. So, there is a list of the main benefits that blockchain technology presents to logistics.
- Prevention of supply chain fraud. The logistics were subject to such problems as counterfeit goods, financial fraud, and false information about the origin of the goods. Blockchain helps to solve these challenges by providing transparent and immutable storage of data and making all transactions secure and verifiable.
- Full transparency and the possibility to trace the cargo. The risk of forging the documents is decreased because blockchain enables tracking the delivery status in the real-time record.
- Authenticity verification. Not only companies benefit from this decentralized ledger public ledger system. The customers can also track their cargo which helps to detect forgeries and eventually restore confidence in the reliability and security of the system of delivery operations.
- Data monitoring. As it was mentioned before, all blocks of information are interrelated, which exudes the possibility to change or delete the data without affecting the whole system. This way people can easily track and see the performance history to examine past time periods of operations.
- Improved efficiency. The use of blockchain makes the delivery costs lover, speeds up the transportation process, and reduces unnecessary and time-consuming paperwork. It also contributes to better communication between partners.
- Enhanced payment processes. Blockchain makes all transactions digital so that this information can be stored without the participation of third parties and their easily breachable and centralized storage.
- Smart contracts. Smart contracts are programs powered by blockchain which helps to set the agreement between two people in an automatic way. Blockchain makes this process more secure and also protects the parties from property loss.
Although the use of blockchain still faces a lot of challenges and needs further development, it has a big potential and prospects in this industry and has already overturned the established standards making all delivery operations verified, easily recorded, and autonomously recorded coordinated. The proper implementation enables the transport company to boost its productivity levels and improve the entire delivery system. All in all, blockchain is poised to revolutionize many industries.