The logistics industry is mainly affected by three challenges: immutability, transparency and elimination of intermediaries. According to some predictions, blockchain can disrupt this industry and turn these challenges into advantages.
The idea behind that is simple. Blockchain is meant to keep track of processes, goods and services across extended chains of communication. This development has found big use and potential adoption in many industries – some of which international trade and logistics. There are more efficient methods that are being developed as we speak, making space for blockchain implementation.
According to the CEO of Netcoins Michael Vogel, the main limitation of these logistical systems is the human component. As he says, whether it is data entry, auditing, errors due to miscalculations or typos, this is what keeps the industry behind.
Vogel also states that blockchain is the ideal technology for logistics. According to him, “Blockchain is the perfect tool for logistics because it takes the traditional database to the next level, an immutable record which is ideal for audit-keeping and immune to tampering”.
Another CEO (of ShipChain) also pointed to accounting as part of logistics and the opportunities the technology creates in the field, stating:
“As soon as Blockchain networks begin taking their first steps on a mass-market level, they will save the international trade industry at least $50 billion USD per year. And upon maturity, Blockchain technology could save the logistics industry a whopping $500 billion USD per year in mundane expenses, along with other benefits that come along the way”.
Basically, blockchain brings a higher level of security to the table. It also removes waste and is more efficient in the long run – making these industries great for its use.
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