Businesses around the world are preparing to deploy blockchain to better their shipping industry practices and utilise the potential it brings in the form of cost saving, transparency and efficiency for the global fright transactions.
By using a blockchain solution, the VGM data can be stored on the global blockchain, which gives a permanent record visible to the shippers, port officials, and cargo owners, replacing the cumbersome spreadsheets, logs, private databases and data intermediaries, effectively. The blockchain data is then made verified, unchangeable and internally accessible, making it an ideal technology. Blockchain solutions are also effective when it comes to transportation documentations, considering a number of documents have to be used for export transactions and it also aids avoiding any fraudulent activities in terms of documentation.
In the blockchain and bitcoin based system, the documents, including those related to transportation and assets like merchandise, can be expressed cryptographically. Hence, the blockchain qualities are most suitable for minimising the commercial fraud on a global scale. Blockchain solutions ensure freight transactions can be audited, chains of goods custody can be verified, no alteration is made in transportation records and veracity of the records are not disputed by the fraudulent parties.
Global shipping, one of the biggest industries in the world, covers almost every region and involves trade in every country around the globe. However, the systems enabling all this trade, have not been subjected to advancement in last 60 years, and many cases still rely on physical paperwork with payment and shipment data. Now freight forwarding and global shipping businesses are taking new initiatives to upstage the potential of blockchain for streamlining the tracking and administration of cargo, which is expected to revolutionise the shipping industry itself.
The blockchain solution is expected minimise the problems within the current systems that still are based on the manual paperwork matching, payments and goods and have an intricate settlement process. As a means to reverse this, we could leverage the blockchain technology to offer smart contracts that tie the bill of loading, ownership among other vital elements, and payment details for each cargo shipment on a permanent basis. This type of a system will provide an exchangeable token that uses the Bitcoin blockchain structure to allow payments of transaction charges, aside of the data logging systems.
The dual block chain system uses both bitcoin block chain and Ethereum blockchain running side by side to make sure a concrete system that will not be affected under its own weight. Due to the decentralized nature of block chain, The supply chains will be more reliable under its management, on account of the decentralised nature of blockchain, while making fraudulent activities impractical to try, therefore lowering the costs and enhancing efficiency in the shipping ecosystem.
Industrialists state the blockchain to be a natural fit for shipping, which is based on compiling and transmitting complex data sets between so many suppliers, participants and regulatory organisations. At the end of it, the blockchain is just simplifying and remodelling the present data flow for better precision and more efficient data flow inside the existing data network.