Let’s admit the fact that the world is witnessing an economic revolution and all this is because of technological development taking place across the globe. The Blockchain is the latest developed, although we have heard this term since 2009. But this is this year where Blockchain is trending. In fact, it has become viral. Coming to its application then Blockchain was initially used for Bitcoin; Bitcoin is a cryptocurrency which is also known as virtual currency, but now we have many other alternatives of it which are available in the market.
What is Blockchain?
Let me keep this very simple; It is a shared ledger between the group of connected people/block stored on a decentralized distributed network secured with cryptography.
The Blockhain technology is used to create a permanent ledger which is entirely transparent and consists of data on sales. The popularity of Blockchain technology is clear from the fact that in the year 2017, IBM, a leading technology company, partnered with ASCAP and PRS for music distribution using Blockchain technology. CLS Group is using Blockchain technology to expand the number of currency trade deals it can settle.
These examples of Blockchain shows that the future is going to revolve around this and digital currency. The next question that pops up is why is Blockchain is becoming so popular? Well, it has some advantage, which I will be enlisting here :
Benefits of Blockchain Technology
Immutability- The very first thing that comes into picture when it comes to blockchain technology, then its that any confirmed transaction on Blockchain is
No Intermediaries- It is a peer-to-peer transaction where there is no interference of the third party, enabling the individuals to interact directly with each other, resulting in lesser external cost.
Automation- Real-time updating of ledger by the miners ensures that any data added or deleted in the blockchain gets stored automatically
Decentralized functioning- Since the operation of blockchain works without any government control and there is no central authority, the information is shared only between the miners.
Speed- The faster pace of transaction is another benefit of blockchain
Cost-effective– With no interference from intermediaries the blockchain becomes cost-effective it involves no extra cost.
Data Security- Every miner has a complete copy of the ledger on their system, it is impossible to lose the data stored on a Blockchain.
Blockchain use in Transport Department
When it comes to Blockchain technology, then it is leading the world and has taken many of us by storm. Many industries are now picking up the Blockchain, and the latest of them is the transportation and logistics industry. In late August 2016, the Blockchain in Trucking Alliance (BITA) launched, it had around 150 organization in it, this included transportation companies, brokers, shippers, carriers, technology vendors. The objective BITA is to create standards and educate industry stakeholders about blockchain.
The blockchain is a great way to share information between parties since it remains free from intermediaries, it is safe to use this technology for the exchange of information. Moreover, Blockchain technology is a reliable way to share information between parties. As mentioned above, it is a permanent ledger knowing transactions or sales; this is spread over the network of computers. Monitoring Bitcoin was the initial objective of Blockchain, however, with the growing list of deals, also called as blocks, they have become increasingly popular as they are free of tampering, revision or hacking.
Since this technology can be shared without information getting tampered, it holds many perspectives on the shipping/logistics/supply chain industries. This will enhance transparency, better tracking of orders, the lesser probability of errors and frauds. One of the examples is the Transport International (MIT) which is using Blockchain technology to record and store Verified Grodd Mass or VGM data.
Performance history records- The first point of usage of Blockchain is maintaining accurate performance history records. For example, when a used truck is sold, many questions pop up in the mind of the customer like the total distance traveled, whether it underwent regular maintenance or not etc. As mentioned above the Blockchain records are considered to immutable and transparent, the exchanging parties don’t need a scout for trust on the selling side.
Freight Tracking- Tracking an assignment is not new, the organizations are using various ways to track the shipment the latest being GPS technology. The rising customer expectations and promise to meet the ever-rising customer demand has made the transporting companies.
Organizations need up-to-the-minute information. Under normal circumstances, the data passes through various intermediaries; there is a probability hampering the data. Since the data in Blockchain technology is transparent, and even the slightest change gets stored and updated, there are least chances of data being changed or hampered.
The Final Words
The world of technology is very dynamic, and with the rising demand of the customers, there always exists a need to create a new system which can match the customer requirement. Blockchain technology is one such aspect, which despite being at a nascent stage is soon to become a part of the mainstream economy just like our banking system.