Feb 23, 2023
8 Ways the Blockchain is Revolutionizing Transportation and Logistics
Did you know that the blockchain technology has the power to improve operational efficiency in transportation and logistics? The truth is this groundbreaking technology has the tremendous potential to introduce sweeping changes all across the logistics spectrum. From order tracking to dispute resolutions, blockchain is the solution to myriad problems that have hitherto been troubling the world of transportation and logistics.
8 ways in which the blockchain technology can upgrade logistics and transportation:
- Improved freight tracking services: With a continuous increase in on-demand services and consumer expectations on the rise, most transport companies need to think of ways to upgrade their services. While companies may already have been using high-end tracking mechanisms, scaling such technologies can be hard, especially because of authentication issues. Transport companies must have genuine data for boosting their services because the existing systems of data recording are prone to manipulations. This is where the blockchain can step in; it will validate the data so that it cannot be further tampered.
- Tracking of fleet: Blockchain will also help to assess individual vehicle performance in a fleet. For instance, if a transport company wishes to invest in second-hand vehicles, this technology can authenticate its past performance data. This is possible because the blockchain can store data for buyers or sellers in the absence of middlemen.
- Using IoT for improving efficiency: The blockchain, along with IoT, is useful for capacity monitoring. For instance, shipping vehicles or trucks can use IoT sensors to identify the space a shipment will need and decide on its costs accordingly. A Swiss company Sky Cell created air freight containers to store biopharmaceuticals which could monitor humidity, location, and temperatures. In this way, the blockchain can create secure records and maintain integrity of valuable stuff that must be transported.
- Using IoT for vehicle-to-vehicle communications: Many companies have already begun implementing V2V communications allowing multiple vehicles to communicate with each other so as to improve security and fuel efficiency. So, the blockchain that stores and validates such data through V2V communications can enable transport companies to make their operations simpler.
- Simpler carrier on boarding: The blockchain can be used for validating driver records pertaining to new carriers. It does this through a decentralized network containing relevant records of carriers throughout the freight and transportation industry; this information is accurate, authentic, and can be verified immediately.
- Makes load boards reliable: Many transport companies worry because the data can get duplicated and this may show an unreliable display of demand. However, with the blockchain technology, the shipper can post loads that are time-stamped, verified, and recorded by the decentralized network. This ensures that a load cannot get duplicated and companies will not need brokers or middlemen to do this job as the blockchain authenticates the data.
- Smart contracts: These help to eliminate middlemen and are perhaps the most useful feature of the blockchain for the transport industry. These are self-executing tasks which are coded vis-a-vis the blockchain and carried out when certain conditions are satisfied.
- Offers permission-based access: The blockchain builds a robust system of grating permission to decide who can access different tiers and subsets of data inside the network. So, the general information may be accessible to all members but sensitive data will only be accessible to some selected members. This method guarantees complete data security while different parties have free access to data that they need to perform their jobs.