Blockchain is certainly one of the most-talked about concepts in the business world. With the emergence of cryptocurrency, led by Bitcoin, the concept of ‘Blockchain’ has brewed a storm. The benefits that have come to the fore, speak for its overall success. With respect to the logistics industry, it is doubtless that this technology can do great wonders. Here is why we think so-
Transparency and Security –
Blockchain will ensure transparency in our overall transaction. The transaction history is basically a shared documentation amongst participants with granted access. Any update in the records will require alteration in the succeeding records, and most importantly a consensus of all the participants. This makes the logistics business seamless and transparent. Besides, the Blockchain technology can very well curb the development of ‘fictitious pickups’, where a trickster arrives at a dock and furnishes fabricated insurance and pickup documents.
Currently around a mere 0.5% of the total world population uses Blockchain technology. But if it is put to use in a large-scale, many industries will make whopping benefits. Blockchain is completely automated and hence there is no scope for human error. Moreover, since the documentation is done by using a single digital ledger, work can be accomplished quickly and smoothly. It is also a platform for the involved participants to work with mutual respect and trust. Introduction of Blockchain will do away with transaction update, data entry done manually, EDI, thereby increasing the overall efficiency.
Reduction of Costs –
Since logistics is an industry that requires the involvement of multiple parties, largely, any company is bound to incur heavy expense. But this problem is resolved with the Blockchain technology. It omits these intermediaries and other third parties, thereby reducing the overall cost. And reduction of cost would mean more savings. Blockchain provides a decentralized platform to the local producers to share not only products but also their personal skills as well as resources thereby removing third parties out of the scene.
Blockchain as a concept is certainly gaining more ground day by day. Many companies have already endorsed in it and vouched for its effectiveness. At the same time, one cannot avoid taking into consideration the doubts that others have raised regarding its reliability. Also, it is to be remembered that the application of this technology means that the company staff needs to be highly skilled in programming. By 2024, the global market for blockchain is likely to be around $3 trillion. Hence the technology has immense potential, but whether it turns into a success or not is for the future to tell.