Blockchain Technology to Disrupt Logistics Industry in a Positive Way
The logistics and trade are essential parts of the global society. Since the global trade and logistics are growing exponentially, there are many new ways are developed to provide efficient delivery and shipping methods. Lately, the Blockchain technology is all set to disrupt the logistics industry by bringing the efficiency into transparency and tracking.
In the current state of logistics industry, the connected devices revolving around Internet of Everything (IoE) need a higher level of security. Blockchain technology is a unique solution in this regard because it provides the best protection through distributed ledgers, advanced encryption, smart-contracts and reduced intermediaries. As a result, it will prevent corruption, ransomware, theft, premium-fees and also fix tracking issues. It will also make systems more transparent, more robust and less dependent on intermediaries.
Blockchain will also improve accountability dramatically. Since the shipping process is a sequence of custody handovers, having an immutable record of chain of custody transaction makes it impossible to lose track of the goods movement and delivery. Existing courier services do track packages very often, but the tracking methods are imperfect.
In the current systems, since the shipment records are mutable they can be hidden or erased completely to the detriment of the people at large. Even governments are able to hide their black budget spending by erasing shipping records or preventing records from being issued at all. On the one hand, governments will argue this is for national security, but on the other hand, the taxpayers that are sponsoring these budgets deserve transparency in spending.
Blockchain technology combines chain of custody control with the transparency of immutable record-keeping. This will eliminate malicious players, as they will eventually become known due to system transparency.
Once Blockchain technology takes over the logistics industry at a mass-market level, it will save the international trade industry at least $50 billion per year. And upon maturity, this technology could save the logistics industry a whopping $500 billion annually.
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