The terms “blockchain” and “bitcoin” are almost used synonymously, leaving many outside the cryptocurrency loop to think blockchain has no application in their industries. The truth is, there are so many applications for blockchain across sectors. Blockchain, simply speaking, is a decentralized public ledger system - which records any transaction between parties in real-time and in a secure and permanent way. Also called distributed ledger technology (DLT), the always up-to-date, secure and authentic data that is enabled through blockchain allows for instant access to the most accurate information in order to drive efficient decision-making.
Currently, most businesses rely on decentralized ledgers that don’t share information or provide real transparency to the accuracy of the data. As a result, players in a network must trust each other and rely on their own systems to flag inconsistencies between various data sources. Making data available between multiple parties through blockchain, there is no longer a need for third parties to authenticate and record transactions. This reduces errors and makes the overall system more efficient.
The supply chain is a prime example of an industry that will benefit from blockchain technology– the sector literally moves the world, and it is ready for a revolution. There are so many applications for blockchain to improve efficiencies across cargo transportation and logistics– allowing a notoriously paper-driven, manual process-laden industry to create and tap big data in a transparent way. The movement of goods across a country or around the world requires multiple players and each change of custody presents an opportunity for error.
Here are three ways blockchain can improve the flow of goods around the world:
1. Ensuring data integrity throughout the chain of custody
In Air Cargo, the International Air Transport Association (IATA) has reported that a single booking information for a typical booking is re-typed as many as 97 times for various systems and many parties across a network, multiplying the chances for errors