The world of cryptocurrency is very innovative and constantly pushing the boundaries while delivering interesting solutions for a myriad of businesses and even governments. The great thing about cryptocurrency and blockchain is that they have major benefits when it comes to the supply chain. When it comes to logistics, crypto and the blockchain allow for greater transparency, lower transaction costs, traceability, security, worldwide adoption, automation, flexibility, and a distributed architecture. This has the potential to really push things to the next level, especially when companies employ solid technology and logistics software to better support these systems.
How Can Cryptocurrency and the Blockchain Improve Logistics?
One of the top advantages brought by the blockchain is the fact better efficiency across a multitude of tasks. Thanks to the help of AI (Artificial Intelligence) and IoT (Internet of Things), you are now able to boost efficiencies and ensure that everything is shipped promptly without the concern of human error. You can also monitor capacity and adapt accordingly, saving costs on shipping.
The blockchain can also help with freight tracking. It’s a solution that works seamlessly and the results it can deliver are among some of the best on the market. In addition, the carrier onboarding process is faster thanks to the blockchain. If you couple that with logistics software, you can track the vehicle performance and fleet performance history too.
The addition of cryptocurrency and smart contracts will also help you track every contract a lot easier. It becomes cheaper too, since you are eliminating the middlemen and really focus on bringing in the ultimate value and quality that you can find on the market.
Mainfenix states, “One of the most important applications of blockchain technology on supply chains is its ability to streamline record keeping, including provenance tracking. Due to the complexity of most supply chains, it is nearly impossible to record accurately every step in the process, especially for each product.”
Are There Any risks?
Integrating cryptocurrency will make it easier for logistics systems to process payments. There are some risks too. Data entry is still subject to human error, so the blockchain can become unverifiable and that alone can be an issue. Not only that, but there’s also the fact that mass adoption is still a problem. Granted, cryptocurrency and the blockchain are now being employed by many, however it still needs to gain greater traction.
There are tremendous benefits coming from both crypto and blockchain solutions, and their amazing results can be second to none. That being said, due to the volatility of these systems, there are still risks that need to be considered.
Mainfinex further states, “Supply chain management is incredibly complex, but the blockchain has the potential to disrupt supply chains as we know them, providing benefits for all. From improving efficiency to reducing costs to delivering trust, the blockchain can disrupt supply chains in multiple beneficial ways.”
What really matters is the amount of work put into the overall implementation and how other supply chain technologies can be used to support the integration. These changes will take some time, but in the long run, blockchain has major benefits for logistics operators nationally and internationally.