Blockchain Technology is Coming
Change is constant and blockchain technology is the next big change coming to the transport and logistics industry. It has already made a big splash in other industries. The concept of blockchain technology is to record every motion in a chain of events. This means every motion can be traced forward or backward in the chain of command. A good point of reference is Google Docs, everyone who has access to the document can view and make changes. There is a log where any changes made are recorded by the minute. This provides data to improve processes and lead to an entirely paperless system. Freight Hub has its own proprietary system, TruckHub, which similarly tracks most of the delivery and transport process. Blockchain technology also stores all contracts, transactions, and even shipper and carrier agreements.
One part of blockchain is the recording part where every little detail is added into the system and nothing goes missing. Another aspect of the platform is the smart contracts. The current system has different parties keeping their own records and databases. With blockchain, this can all be found in one place. Privacy and control is set to be as effective if not more than the current system. With the public blockchain, no single entity can make an amendment to the record without the knowledge of the other party. This aspect of the system will enable higher accuracy, transparency, and optimized processing times. The transport and logistics industry still relies heavily on the electronic data interchange (EDI) which is a manual process. The EDI process was introduced back in 1947-48 before technology truly existed. It did not pick up traction until the 1960s to speed up shipping and transportation documentation. Since then, it has implemented electronic purchase order exchange, acknowledgements and invoices.
With blockchain technology being so easily accessible, one would think it would also be easy for hackers and others to view and steal information. However, that is not the case at all. The platform does not store information in a single location but on millions of computers. This makes it nearly impossible for hackers to corrupt the files. The current centralized system of having to transfer a document every time an edit is made and it is stored on one computer or system. This has little transparency and alot more opportunity for hackers to gain access and corrupt the system.There is also the issue with software updates, a centralized system completely halts if an upgrade is being done.
Trucking and Blockchain
Blockchain technology is not as new as you think. It is from the creators of Bitcoin and uses a lot of the same technology. They are definitely out to leave a digital footprint on every industry. Technology is the future and the transport and logistics industry needs to catch up. Paper is a thing of the past and the more synchronized the process is the easier and more cost effective it will become. Freight Hub is tech minded and we can’t wait to see how we can learn and integrate blockchain into our own processes.