July 7, 2017 / news

No Paperwork And Intermediaries As Blockchain Is Changing The Trucking Industry

blockchain in logistic

Those who followed the latest trends in the digital world, it becomes obvious that the next qualitative leap forward logistics need blockchain.

It is known that logistics includes not only the process of transporting a product from point A to point B, but also all accompanying activities: managing massive cargo flows, resolving customs issues, ensuring security and intermediate storage of goods. Needless to say, logistics deals with a huge document circulation, that further burdens an already difficult industry.

Logistic chains are not always transparent and often so long that the end user can not trace the path that the product come to him. This opens up countless opportunities for dark schemes, counterfeiting and smuggling. And here it can be irreplaceable blockchain.

Despite the fact that the blockchain created as a solution for the financial sector, the transparency, autonomy and reliability offered by the technology interested representatives of other industries. Even today, blockchain used in cloud computing sphere, storage of information, Internet of things, etc.

The benefits that blockchain can bring to logistics are also understandable. First of all, it is an opportunity for customers and even end customers to track all cargo movements within the same network. The very architecture of the blockchain provides transparency for audit and protection against fraud. Also, blockchain allows you to remove a lot of paper red tape and intermediaries from the process, and this significantly reduces the cost of the service. Obviously, experiments with blockchain in the field of logistics were a matter of time, and starting from last year, a number of major players of the world market interested in the possibility of introducing this technology into logistics.

The first major results in this direction achieved by the large banking companies Commonwealth Bank of Australia and Wells Fargo. These banks have been investigating the blockchain for a long time and are members of the R3 consortium. In October 2016, these companies successfully transported across the ocean a small load of cotton from the US to China, accompanying the transaction with blockchain and smart-contract technologies. Despite the successful experiment, banks are not in a hurry to further implement the technology due to regulatory uncertainty.

Following the banks went Rotterdam port, and the largest Danish carrier Maersk, already today experimenting with blockchain solutions. Consider options for blockchaun the logistics sector and such giants of retail as Walmart, Amazon, Alibaba, Kestrel, etc.

One of the pioneers of this movement was A2B, a startup service that provides a direct link between cargo owners and freight forwarders. The company is currently conducting a crowdsdale, that will help it to transfer its already operating logistic model A2B Direct to the blockchain.

Such “verification” of the cargo transportation sector will make it possible to reduce and simplify international transportations and will enable enterprises and customers to use fiat and cryptocurrencies to pay for services.

At the moment the company works in the markets of Ukraine and Belarus, but plans to expand to Western Europe and America in case of successful crowdsale. ICO platform starts on July 12 and will last a month.

Perhaps the main benefit of such projects for blockchain enthusiasts  lies in the approach of the future consumer society, where, thanks to blockchain technology, there will be a natural symbiosis of the Internet of Things and global supply chains.

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