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The immutability, transparency, and elimination of middlemen are just some of the attributes the most valuable of the blockchain on which many disruptions are happening across various industries.
Being able to follow processes, goods and services through extensive communication channels is a development that has become essential to the social and commercial aspects of human existence. As international trade and logistics continue to expand, more efficient methods are being developed to enable efficient service delivery and value transfer, but some limitations still exist, necessitating the implementation of blockchain which would allow the application of its inherent properties.
Getting Rid of Human Interference
Netcoins CEO Michael Vogel told CCN that the main limitation of any logistics system is the human component. According to Vogel, that it's about data entry, audit, errors due to typos or miscalculations, all processes involving a touch point human beings introduce the possibility of delays or errors. In fact, that is why VISA Europe is studying the idea of using Bitcoin and Blockchain technology behind the scenes to improve internal fund settlements (to improve response time and accuracy).
"Blockchain is the perfect tool for logistics as it carries the traditional database to the next level, an immutable record that is ideal for auditing and immunity to the falsification " says Vogel.
He also notes that given the logistics accounting, the dawn of the blockchain created an opportunity for the concept of accounting "triple-ledger", an idea in which a third big book accounting records. This allows an instant audit, contrary to the traditional practice of quarterly reviews.
"As soon as Blockchain networks begin to take their first steps in the mass market, they will save the international trade industry at least $ 50 billion a year. And at maturity, Blockchain technology could save the logistics industry $ 500 billion a year in current expenses, as well as other benefits that will arise " says John Monarch, CEO from ShipChain.
A Higher Level of Security
Monarch explains that connected devices revolving around the Internet of Everything (IoE) need a higher level of security. Monarch notes that Blockchain technology is an unparalleled solution in this regard because it offers the best protection through distributed registries, advanced encryption, smart contracts and reduced intermediaries. As a result, this will help fight corruption, ransomware, theft, bonuses and tracking issues.
At the time of writing, the logistics sector employs the most people and, over the millennia, has had to innovate to adapt and sustain the practical aspect of the growing human population. This happens again at the time of writing the fourth industrial revolution.
According to Jeremy Epstein, CEO of Never Stop Marketing, one of the biggest challenges in supply chains is that of redundant systems that do not get together. do not speak. What he says adds a tremendous amount of friction and cost in terms of supply chain. Epstein notes that different organizations, whether governments or suppliers, spend a lot of time verifying that shipments contain the items that they are supposed to have. When all is said and done, it adds a cost to the customer.
Epstein says to CCN:
"Blockchain technology offers us the opportunity to eliminate much of the waste inherent in these efforts, by providing better quality products at lower cost by ensuring a given container has the products listed on the manifest within it or by ensuring that there has been no tampering with the products en route, which will reduce costs enforcement of customs duties and will also increase security. "
Image from Shutterstock.
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