Technology

How Will Blockchain Technology Revolutionize Logistics?

If you haven’t noticed, blockchain technology is taking the world by storm, catapulting technology into unchartered, new territory, allowing for greater transactional accuracy, and more importantly, transparency.

The Motley Fool sums up the blockchain,

It’s a brand-new way of transmitting money without the need for traditional banking networks, as well as a means to store data in a transparent and unalterable way.”

Above all, blockchain is a foundational technology allowing businesses to build new applications on top of it, leading to a myriad of technological advancements across a broad range of industries, including supply chain and logistics.  

According to Freightwaves,

In May 2017, Deloitte tweeted that 10% of global GDP would be built on top of blockchain applications. This huge and ambitious claim was made because of the transformative nature of the technology and the effect it will have on society. For logistics and transportation, it will have a bigger impact promising to shake up the $8T industry.”

Greater transparency means less risk 

Since the early days of human civilization, where trade was mostly local and rarely international, the supply chain has become increasingly complex in nature. As humans have evolved, with our needs becoming greater, we have relied on businesses to provide us with a vast array of supplies from all corners of the globe.

See: The Advantages of a More Secure and Safer Blockchain

With these logistical developments, also comes the risk of threats and illegal operations, impacting businesses and consumers alike. You might be asking what this has to do with blockchain? Well, the implementation of blockchain means greater transparency, as this new technology alleviates the need for unnecessary ‘middlemen’ and painful ‘transactional costs’, which drives up prices for all involved.

Blockchain is now set to positively impact logistics, by giving more people what they need without the unfair overheads usually incurred because of the lack of transparency in the supply chain. 

Smarter way forward for contracts 

According to The Manifest,

A staggering $140 billion is locked up in transportation payment disputes every day. On average, settling in full on an invoice takes around 42 days. This all represents an incredible waste of time and resources.”

A smart contract, built with cutting edge blockchain technology, is an automated legally binding agreement that supports businesses with clearer data, upfront terms, and quicker turnarounds, saving time and money. Smart contracts are set to radically shift the way legal processes are currently put together in the logistics industry, giving all parties what they want with less hassle. 

See: How Blockchain Can Revolutionize Personal Data Storage?

Overall it’s clear that the supply chain is going to be revolutionized by the radical technological advancements seen with the impact of blockchain. Too much time and money have been wasted in processes that aren’t clear enough for all parties involved.

The Manifest states,

Problems with documentation transparency and traceability of goods in supply chains can be either mitigated or completely resolved by modern systems based on tech innovations.”

From greater transparency, cost savings, cutting out unnecessary transactional overheads to working out better ways to deal with complex, global legalities, the time to embrace logistics blockchain is now. 

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