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Blockchain in the logistics industry will improve transparency, improve process accountability

The flow of communication and logistics is an essential aspect of human existence that is the & # 39; backbone of the transfer of goods, services and …


One of industry & # 39; global importance

John Monarch , CEO of Shipchain, notes that the logistics industry employs the most people in the world. He explains that as this sector has expanded over the millennia, innovation has been needed to adapt and maintain the practicality of the growing human population. This is still happening at the time of writing, with the fourth industrial revolution.

Monarch Says Cointelegraph:

"Connected devices revolving around the Internet of Everything (IoE) need a higher level of security. Blockchain technology is unparalleled in this regard because it offers the best protection through distributed registers, advanced encryption, smart contracts and reduced middlemen, which will help fight corruption, ransomware, theft , bonuses and tracking problems. "

He concludes that once Blockchain networks begin to take their first steps into the mass market, save the industry from the international trade at least $ 50 billion a year.And at maturity, Blockchain technology could save $ 500 billion a year to the logistics industry

The true role of Blockchain

Blockchain professional Aleksandar Matanovic tells Cointelegraph that Blockchain technology will work as a tool. improve processes by bringing inherent properties into the industry.

Matanovic says:

"As in many other industries, I do not see Blockchain as a tool to increase efficiency, there are many systems more effective than those based on Blockchain, I see it as a way to make systems more transparent, more robust, and less dependent on intermediaries. "

The importance of follow-up Effective

BitLand's chief operating officer, Christopher Bates, explains one of the key issues related to the chain of custody is when a property changes owner or custodian. Bates uses the story of a car as an example:

"It is very important to know if a car has been a victim of a major accident and suffered structural damage, he says. "If there was an unchanging accessible record that kept track of the history of the car, there would be no way that it could be done. a car salesman could sell a car that had been extremely damaged. "

the land has many problems that affect it all over the world.One of the most recurring is that of the double or triple sale of a parcel of land, which means that a person will sell land to several people and only one of the sales (if any) will be legitimate. In some places, land titles are kept on paper or are tracked by a single individual, in which case it is often impossible to know Be the real chain of possession, and individuals manipulate ownership records for personal purposes.

Blockchain will allow accountability

Since the shipping of any matter is a succession of custody transfers, have an immutable chain transaction record of guard makes it impossible to lose track of who is responsible for a piece of property during each transfer. Existing courier services often follow parcels along their route, but these methods are flawed. Bates says:

"The problem here is that, since they are mutable, the shipping records can be hidden or erased completely to the detriment of the whole of the Governments are able to hide their budget expenditures by removing shipping documents or preventing the issuance of documents.On the one hand, governments will say that it is for the national security, but on the other hand, the taxpayers who sponsor these budgets deserve the transparency of spending. "

Blockchain technology combines the control of the chain of transparency of the. This creates an ecosystem that deters malicious actors, because they will eventually become known through the transparency of the system.

Bates concludes by pointing out that anyone who claims to be in the decentralization movement isation should be extremely happy whenever a government decides to implement blockchain technology of any kind. This means that the government is moving towards transparency, whether it knows it or not.

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