Leveraging Blockchain Technology in Freight and Logistics Industry
The legal, political, and economic system of maintaining records of transactions and contracts are eminent in order to set boundaries and protect assets. In recent years, blockchain technology has completely revolutionized the way enterprises do business. It serves as the digital ledger platform that can be identified, validated, stored, and shared. This unique feature of blockchain makes it frictionless in terms of performing digital transactions. However, in the freight and logistics industry, large players like Accenture have taken blockchain to a new level. The firm has implemented the solution in order to efficiently transform the sector and save billions for its partners and clients in the long run. Firms settled on a blockchain-based solution experiences a considerable amount of speed up in their process including the flow of transport documents and simultaneously streamline the shipping process and reduce the burdensome of data entry by 80 percent.
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By Gavin Whitechurch, EVP Product & Strategy, KNect365 TMT
The blockchain technology reduces the need for documents in the shipping process and instead, they include the data in a DLT (Distributed Ledger Technology) platform under single ownership rules based on the type of information. The consortium reviewed a set of documents where the documents were shared by using blockchain technology which includes re-allocation of information ownership, accountability, and risk enabled by the trust and security blockchain technology offers.
However, there are certain challenges associated with blockchain which requires a considerable amount of attention. Industry experts of some behemoth industries predict that 2018 is the year that will set a new landmark for blockchain technology by making it accessible in everyday usage of business applications.
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By Nathaniel Karp, Chief Economist, BBVA Compass