You may have noticed a few prominent private blockchains popping up here and there. The problem with these private blockchains is, at their core, they are not truly decentralized. By joining a private chain, you do not get all of the benefits that blockchain promises. In fact, you could argue that your data is even less secure because you are essentially handing it over to whoever owns that chain. That’s why the industry needs to look forward to the public blockchain.
So what does the shipping and logistics industry look like when all players embrace the public blockchain?
1) Trust between parties will increase as the need for third-party intermediaries decreases.
Some companies are trying to use private blockchains, but other members of the industry simply don’t trust or want to participate in them.
As everyone transitions to a public blockchain, carriers and shippers will be able to find each other directly and rely on the tech itself for security. Public blockchains aren’t going to solve all our problems, but they can create a newfound sense of trust between parties.
2) Efficiency will increase as blockchain unifies the industry.
Everyone’s talking about the Internet of Things, artificial intelligence, and machine learning. While each of these is exciting on its own, the real home run in terms of increasing efficiency will come once they’re unified. We will see faster deliveries, less time spent on paperwork, more automation, and fewer instances of lost items, and the finger-pointing between carriers that often results when things go wrong. Public blockchain can be that underlying layer that all these technologies rely on to work together, and it will also help all the players in the industry achieve greater harmony with one another.
3) The entire industry will be impacted for the better.
Blockchain will make everyone’s lives easier and less stressful because the technology will help us identify where problems in the supply chain occur. There will be more accountability and less finger-pointing across the board.
A lot of companies think “transparency” means their data is no longer private. And understandably, they don’t want the transparency that blockchain will bring. But in reality, transparency on a public blockchain actually means more security for everyone (see #1). Everyone benefits from lower costs and the ability to track shipments from origin to destination, from shipping companies executives all the way down to truck drivers.
Here at ShipChain, we are more excited than ever about how the public blockchain can help us move forward and unify as an industry. To learn more about our Track and Trace Platform, request a demo from us!