The use of blockchain marks an important point in technological advancements in the world, akin to events like the creation of the internet and the adaption of the smartphone. In fact, the banking system is already changing, along with the real estate, education, and advertising industries. However, since blockchain is inherently decentralized, there are plenty of opportunities to improve how secure this type of ledger is.
At this point, apart from cryptocurrency, the industry that has plenty to gain from blockchain technology specifically is freight and shipping. Even though it’s a trillion-dollar industry, it hasn’t had much movement in the technological sense. Without a unified record available, packages become a little hard to track, which means there’s no way to hold anyone responsible for damage, loss, or theft. A supply chain, without cooperative details, makes it exceedingly easy to pass the buck and blame someone else for the problem. Without communication, the brokers that track the chain can charge users obscene prices to simply do their jobs.
It should come as no surprise that blockchain is a valid option for this type of tracking. Some companies are only implementing it slightly, tracking shipments from one place to another. However, there seems to be one company taking full advantage of the blockchain – ShipChain. This decision can be entirely credited to the CEO, John Monarch.
Monarch also is the CEO of Direct Outbound right now, which is a company for third-party logistics. They have a similar approach to his other venture, containing as much of their business under their own roof. Monarch was also one of the early people to go into the cryptocurrency industry, since he saw that its technology has much more potential than the actual coins. As he worked with his two businesses, he decided to integrate this technology when it became possible.
The ShipChain team offered an initial coin offering (ICO), which took place towards the beginning of 2018 and managed to bring in $30 million. They used the Ethereum blockchain, and Monarch says that the infrastructure is set up and they have four principle smart contracts that are in the works. Their developers will be able to use these contracts to work on a new web platform, which is known as ShipChain Portal.
As the platform is activated, the technology can make an impact on the entire freight industry, letting users establish business contracts between each other to eliminate the middleman (brokers). Shippers and carriers will be able to work directly between their companies, which means that there’s no need to pay excessive fees for arbitration. Every company will reduce their costs, and even the smallest people in the industry will have more accountability if things go wrong on their side.
To ensure that this ledger remains honest, Shipchain’s new hardware sensors will be placed with the shipment, which will say with goods from the warehouse to wherever the destination is. The beauty of the blockchain is that there is no way to ever remove or edit the information, which is what makes it so appealing. With $30 billion in losses every year, companies will be able to see exactly what happened and who is responsible when shipments go awry.
With the scattering of accountability that the industry presently has, it’s hard to rely on any entity to do what needs to be done. The blockchain helps the industry become more of the well-oiled machine that every company truly wants to be. With John Monarch and ShipChain at the front of this effort, it may become easier to get items from one place to another.