Lately, there has been a significant buzz around cryptocurrencies. While most of the buzz has been because of the value of the currencies, many fail to realize that cryptos are actually founded on blockchain technology. Blockchain technology is revolutionary and could play a big role in the shipping industry.
Why Blockchain Is Beneficial
Blockchain technology promotes ledgers that are decentralized and immutable. They are considered unhackable and incredibly secure. The blockchain is maintained by multiple parties, which means blockchain networks have no single point of failure.
Currently, global supply-chain lacks security, transparency, and efficiency. Blockchain technology solves all three. In doing so, blockchain technology could lower intermediary costs of shipping while reducing the need for brokers.
UPS Becoming Involved In Blockchain
UPS has recently announced that they will be joining the Blockchain in Transport Alliance, which seeks to develop blockchain development standards for the shipping industry. In doing so, UPS is indicating that blockchain will be key in developing a revolutionary smart logistics network.
UPS’ Director of Enterprise Architecture, Linda Weakland, indicated that the company was long on blockchain technologies. She said that blockchain could benefit many aspects of the logistics industry, including
• Insurance
• Audits
• Supply Chains
• Payments
• Customer Brokerage
Blockchain technology could end up increasing transparency by all parties that have a hand in supply-chain processes.
Other Companies Investing In Blockchain
IBM has recently moved to implement blockchain technologies into cargo shipments.
There is also a new company, ShipChain, that will be for public sale at the beginning of the new year. ShipChain offers open API architecture so that their technologies can be seamlessly integrated with a company’s current freight management system. The company utilizes Ethereum blockchain technology to streamline supply-chain processes.
