Nowadays, we order everything online. No matter where in the world you are, there’s an online store just a click away. We order items like clothes, cosmetics, food, etc., and they arrive at our doorstep in just a few days. Ordering these everyday items seem minor compared to the import and export of capital goods.

How Does Blockchain Technology Support Logistics

Most people think of capital goods and imports as construction materials, machinery, vehicles, pharmaceuticals, or fuel — stuff that’s in high demand. Have you ever wondered how these things are tracked? There are billions of dollars worth of transactions each year. It can’t be easy to keep track of all the documentation for so many shipments. How does the paper documentation become easier to manage?

In the year 2018, Danish shipping companies Maersk and IBM, a large technology company in the world, had the right idea. Maersk is responsible for delivering goods to hundreds of countries and helping them grow. After collaborating with IBM to introduce blockchain technology, they were able to build a new system called TradeLens, which aims to make supply chain management more transparent and efficient.

Maersk And IBM; How Did They Combine Blockchain With Logistics?

How Does Blockchain Technology Support Logistics

The logistics industry has been having trouble with the difficult management of shipping transactions in the past. However, the new idea is to use blockchain technology in logistics.  It helps to create a more reliable and transparent supply chain by using a digitalized pilot. The main goal is to better the logistics industry by creating easier modes of data-sharing and data visibility, as well as collaboration.

Two forces joined to form TradeLens, an industry platform based on blockchain technology for European and American commerce. The two companies served as founding members: Maersk and IBM. TradeLens is open and neutral and seeks to provide a more transparent and efficient exchange of information. The Maersk IBM blockchain strives to make it easier to store digital information, which will, in turn, create a more reliable system that protects all parties involved with the transaction.

How does Blockchain Technology help?

How Does Blockchain Technology Support Logistics

Originally, blockchain technology was created for innovators, working to create a more transparent and honest society that could be trusted of contracts and the people who wrote them. The technology can help with logistics and running a facility smoothly and securely. Contracts on the blockchain can serve as records for all to see and keep in mind values and morals. It ensures that the data transfers in a fairway.

A company that deals with billions of transactions all over the world, Maersk and IBM have taken a safer route to secure the world’s assets. These logistics facilities are more vulnerable to hackers and theft, so there are a few issues that they have to face.

Blockchain for the Future

How Does Blockchain Technology Support Logistics

Successful implementation of the TradeLens platform is already a fact. In just one year, it had recorded 250 million shipping events, which has allowed for greater safety for all of its stakeholders. Blockchain in logistics has helped create a safer environment for importers and suppliers as well as ocean carriers worldwide.

Blockchain tech has been proven to build trust, values, and help billions of people share data and collaborate. It’s no surprise that the logistics industry is one of the first to adopt blockchain. The blockchain can help with many different aspects of the business. Such as the modern era where trust and values are scarce. In a world where we need more trust and values, blockchain is still essential.

 

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