The logistics industry’s vastness raises numerous challenges that are holding it back from becoming a smoothly-functioned one. Some of the many issues that the logistics sector faces include high dependency on paperwork, lack of trust, transparency, and delay in consignments and payments. There has been an attempt to make the shipment process a lot smoother with the implementation of many technologies.
However,
none of the technologies has made a substantial impact. But now, with
blockchain technology, there is a possibility that the logistics industry can
be revolutionized. The implementation of blockchain in logistics has many
potential applications that can mitigate all the logistics industry’s
inefficiencies and issues.
Blockchain
is a decentralized ledger technology to store digital information in the form
of a chain. Every blockchain block consists of digital data that can be
transacted or used to create smart contracts and decentralized applications.
There is no central management body in a blockchain network, and every
transaction is recorded in the chain after verification from miners. Hence, it
is immutable by nature and the most secure and transparent technology out
there.
These
features of the blockchain network make it a perfect match for the logistics
industry. With the use of blockchain in logistics, you can easily upload all
the paperwork on the network, and anyone can access it from anywhere in the world.
This can make logistics a completely transparent process and eliminate any
middleman’s need to handle the paperwork. Various other blockchain applications
in logistics can mitigate several problems and act as catalysts in the
industry’s growth.
What are the different blockchain
applications in logistics?
From
improving efficiency to simplifying tracking, everything can be done with the
help of blockchain. Now, with the emergence of the Ethereum blockchain and
other blockchain networks, you can also create smart contracts to automate
payments and transactions for delivered consignments. Let’s go through all the
potential blockchain applications in logistics.
1.
Enhanced shipment tracking
2. Automated
payments
3. Mitigated
Paperwork
4. Improved
Security
This blockchain
application in logistics can increase trust and
reliability among all the parties involved in transportation, thereby
increasing transparency in the system.
Not just among the B2B parties, the use of blockchain in logistics
can also increase trust and transparency with end customers, thereby fostering
the industry’s growth. It is the logistics industry and every other industry in
the world that has witnessed blockchain technology’s potential. Every business
out there is planning to leverage the benefits of the blockchain network. This
has caused a surge in blockchain careers.
The use-cases of blockchain for logistics include inventory
tracking, better transparency, settling disputes, and invoicing & payments.
Even with these use-cases, there are many success factors for blockchain to
succeed in logistics.
We hope you have found this article
informative and interesting. For more information or queries contact us to know
more about this technology.
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