Cryptocurrency is made up on blockchain technology and much of its triumph is licensed to this revolutionary breakthrough. When we hear “blockchain” or “blockchain technology,” some buzzwords that come to our minds are cryptocurrency, finance, or decentralized processes. Yet, blockchain technology applies to so much more than simply finance or crypto-related fields. In today’s society, blockchain is growing into the corporate sector and revolutionizing multiple industries outside of just finance.
Here’s a few industries within the corporate field that are utilizing blockchain technology in their setting.
Launching of blockchain technology has widely influenced the transportation industry, making companies more profitable than ever. For starters, any business which employs transportation services can now easily organize who and where their shipments are going to. The decentralized ledger allows business owners to quickly see the exact details of each and every transaction, eliminating mountains of paperwork and middlemen which prolongs the process even more. Deliveries have the potential to be much quicker given the integration of smart contracts which will reduce time spent at checkpoints or clearance requests. With the increased demand for “same-day shipping” or “express shipping,” the possibilities are endless considering how fast blockchain is improving the system.
- Air Transportation
“Fasten your seatbelts for take off”
This is where the ability of blockchain comes into play. Each stage of the luggage or cargo process, from origin to end receiver, handled by the airline creates a unique code. Any changes, additions, and deductions of products and baggage can then be easily identified and updated on blockchain. Nevertheless, syncing all that data on a global scale can create network traffic saturation. This is because blockchain is decentralized, there is less assurance on the network bandwidth to address all this synchronizing. This transparency is essential in avoiding unauthorized action and helps airlines reduce smuggling and theft, achieve faster processing time, and reduce paper-based processes.
Just as smart records are used as a digital wallet that store travel data such as flight tickets, hotel reservations, and other information on blockchain, airlines can use the technology the same way to track the airline cargo lifecycle. This impact of baggage tracking is significant for airlines, as at least one out of every 200 passengers feel the impact of baggage loss or delay annually.
FedEx joined in an effort to integrate blockchain into its daily operations as well. Not to mention, the world’s largest shipping company Maersk finished up its first test of a new blockchain-based system to manage cargo. With strong support from multiple industry leaders, blockchain-based technology is quickly emerging into this space and could soon be an integral component to its future success.
Number of shipping giants have already taken the initial steps towards adopting blockchain technology. In fact, UPS is one of the earliest supporters of blockchain technology in the shipping industry. UPS is discovering blockchain applications within its own supply chain to increase efficiency in all transactions. For example, Bezos has legitimized Amazon as one of the most if not the dominant marketplaces for e-commerce. Unfortunately such decentralized marketplaces can give the shipping and handling fees to the producer, allowing him or her to adjust prices directly. Although there are several risks that concur with the emergence of decentralized marketplaces, it’s clear that monopolistic companies like Amazon are already opposing the interruption of blockchain technology in the shipping sector.
2. Supply chain
Increased transparency linked with permanent decentralized transactions will eventually transform the way supply chains are managed in all facets of the system. It can be observed that the potential of blockchain to increase efficiency and security, leading to less human errors and time that is being wasted. Enhancing decentralization and enabling better capacity to be given by different service providers will result in lower costs of delivery, providing favorable results for both the consumer and supplier.
One of the key overarching advantages that rise from the integration of blockchain technology within supply chain management is the decrease of waste emissions and increased environmental safety. Now, every single step of the supply chain can be monitored and analyzed, letting experts to properly evaluate what kind of environmental or health affects their products present. What’s more, this makes a higher standard of efficiency which will help boost the rate at which innovates their own technology as businesses seek to push the envelope for how efficient they can be.
Who’s utilizing blockchain technology within internal supply chains?
As seen to those in the transportation industry, companies in the food industry rapidly drove into the blockchain space and made a “Walmart-led “Food Trust” including ten industry giants including prominent chains like Nestle and Dole. Together, these companies will work to strengthen and share data regarding produce transactions in order to prevent health crises. For instance, blockchain technology allows employees to trace any product to its source in just 2.2 seconds much faster than the full week that it usually takes. When the facts identify drastic improvements in efficiency of this scale, it’s hard to reject the claim that blockchain can be the future of all supply chain systems.
Blockchain will finally balance capital, eliminate middlemen, and give life to commerce as the applications of its technology continues to grow in markets beyond finance. Through the coming years, we can expect many more industries to be disrupted by this innovative technology as it quickly continues to arise as one of the most revolting systems we’ve ever witnessed since today!