We at TheBlockchainAcademy.com has already discussed the transformations brought about in a number of industries around the world. In this article, the industry we are going to discuss for block chain technology adoption is global shipping. Global shipping, one of the biggest industries in the world, covers almost every region and involves trade in every country around the globe, with more than 4 trillion USD in goods being shipped around the world every year. Never the less, the systems enabling all this trade, have not been much changed in last 60 years, and a lot of cases are still relied on matching physical paperwork with payment and shipment data. Now freight forwarding and global shipping businesses are taking new initiatives to leverage the potential of block chain for streamlining the tracking and administration of cargo, which is expected to revolutionize the shipping industry itself.
The end-to-end block chain solution is expected to alleviate the problems within the present systems that still are based on the manual paperwork matching, payments and goods and have a convoluted settlement process. In order to remedy this, leveraging the block chain technology for offering smart contracts that tie the bill of loading, ownership among other vital elements, and payment details for each cargo shipment on a permanent basis, has become a necessity. Moreover, such a system will give a tradable token that uses the Bitcoin block chain infrastructure to enable transaction charges payments separate to the data logging systems, along with some alternate data saving solution that is based on the Inter Planetary File System, so that huge data for a cargo shipment can be easily fitted into a block chain block.
The dual block chain system uses both bitcoin block chain and Ethereum blockchain, the two running side by side to make sure a strong system that will not be affected under its own weight, the concurrent system for the transaction gees decreases burden on the critical data stream and gives higher stability. Due to the decentralized nature of block chain, the supply chains are now more reliable under its management, becoming quite impractical to try fraudulent actions in the supply chain, therefore reducing the costs and enhancing efficiency in the shipping ecosystem.
MTI, which made its first public block chain transaction on Sep 1, 2016, is among just a few of the businesses outside the financial industry to utilize block chain within its key operations. Another example is Toyota Motors, which is also using this technology for tracking its supply chain. As per MTI, this move is aimed to replace the costly and cumbersome legacy systems, like spreadsheets, logs, private databases and data intermediaries, which become the source of delay and present carriers from making timely amendments to services.
Jody Cleworth, the MTI’s chief executive officer, states blockchain as a “natural fit” for shipping, which is based on compiling and transmitting complex data sets between so many suppliers, participants and regulatory organizations. Eventually we are just better enabling and repurposing the present data flow to offer increased precision and more efficient data flow inside the existing data network which has key benefits for the global shipping industry.
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