Blockchain: The Future of Transportation?
Have you ever tried tracking a package only to find limited shipment information available? With the help of blockchain technology, this very well could be an issue of the past.
What is Blockchain?
You may have heard of “blockchain,” but what exactly is it? It is a virtual, decentralized ledger system (like the cloud) that can record transactions between two parties efficiently and in a verifiable and permanent way. In other words, every task and payment would be given a digital record and signature that can be stored and validated, potentially eliminating the need for intermediaries, like banks and lawyers. For example, the up-and-coming crypto currency business, Bitcoin, utilizes this technology. Bitcoin uses blockchain to protect user information and to provide access to parties all around the world.
Overall, blockchain provides security and transparency of transactions, whether that is for cypto currency or even for logistics. In logistics, blockchain technology can be used to track shipments and documents for various parties across the supply chain. Blockchain’s “smart contracts” allow logistics companies and their partners to make transactions and receive clearance approvals faster, reducing processing times at checkpoints.
What Are the Benefits of Blockchain?
When making purchases and other critical transactions online, a major challenge for many companies to overcome involves consumers’ lack of trust in a website’s security. Keeping privacy protected and information secure is extremely important. The ability to protect private information is one of blockchain’s many benefits.
Other benefits of blockchain include:
- Reduced hacking threats
- Differing levels of accessibility
- Quicker transactions
- Automated account reconciliation
- Ease of trackability
- Transaction transparency
How Will Blockchain Impact Shipping and Logistics?
Blockchain enables a smoother and more secure process when it comes to handling product shipments across every link in the supply chain. With the ability to improve shipment visibility and documentation, blockchain technology has the potential to transform how businesses manage their supply chains and move and track their shipments from origin to destination.
How Is Loup Preparing for Blockchain?
Loup’s parent company, Union Pacific Railroad, is a member of the Blockchain in Transport Alliance (BiTA), allowing us to keep up to date on the latest blockchain technology advancements. BiTA’s mission is to drive the adoption of emerging technology and to develop a common framework and standards for building blockchain applications for the freight transportation and logistics industries.
Want to learn about the transportation solutions Loup can offer you now? Contact us.Contact Us