lockchain technology offers several significant benefits to the logistics industry, revolutionizing traditional processes and enhancing efficiency, transparency, and security across supply chains.
Here are the 4 main benefits of Blockchain technology for the logistics industry
Data transparency
Blockchain technology includes mechanisms to ensure stored records are accurate, tamper-evident, and from a verifiable source.
Thus, instead of multiple parties maintaining (and altering) copies of their own dataset, now every stakeholder receives controlled access to a shared dataset creating a single source of truth.
This gives confidence to everyone working with this data that they’re using the most recent, accurate, and reliable dataset.
Security
Traditional ledgers typically provide a blanket layer of security which, once breached, allows access to all stored data.
In a blockchain-based system, the security mechanisms make sure that individual transactions and messages are cryptographically signed.
This ensures essential security and effective risk management to tackle today’s high
risks of hacking, data manipulation, and data compromise.
Asset management
Blockchain technology can be used to manage the ownership of digital assets and facilitate asset transfers.
For example, it can be used to track the ownership of titles (e.g., land titles and diamond certificates) and rights (e.g., copyright and mineral rights). It can also be used to manage the digital twin of a physical object in the real world.
Smart contracts
Manual processes that are normally guided by legal contracts can be automated with a type of self-executing computer program called a smart contract.
A smart contract is a component of a blockchain-based system that can automatically enforce stakeholder-agreed rules and process steps.
Once launched, smart contracts are fully autonomous; when contract conditions are met, pre-specified and agreed actions occur automatically.
These capabilities can be deployed across two types of blockchain-based system: public permissionless blockchains where anyone can participate (e.g., the bitcoin network) and private permissioned blockchains where participants must be safe-listed.