110-Year-Old United Parcel Service (UPS) Will Use Blockchain To Streamline Logistics
It looks like even ancient companies are starting to see the benefits of using the blockchain technology in their services. Now it was United Parcel Service (UPS), a century-old company with 110 years of existence to start to use the blockchain benefits. The company will reportedly use the distributed ledger technology to streamline package delivery logistic services across supply chains.
The information was released by the U. S. Patent & Trademark Office (USPTO) this week. The company, which is based in the state of Georgia, has applied for a blockchain patent. According to the patent, the company will use the technology to route packages around an international supply chain which may include multiple carriers. This new patent was filed on February 16, 2018.
The Blockchain To Help Logistics Systems
According to the patent developed by the company, shipping logistics that use the blockchain technology are now more common but they often are not able to completely increase efficiency and minimize costs by coordinating logistics for shipments that can involve different types of logistics services.
As the authors of the UPS patent explain, the blockchain technology can be extremely useful for cases in which there are advantages in using a number of different service providers at the same time to transport shipments and help to coordinate the movements of the product. With the help of the blockchain, these processes can be done in a more efficient way.
An Autonomous System That Uses The Blockchain Technology
According to the UPS, all these problems could be solved or at least have their efficiency improved by using the blockchain technology in an autonomous system with an immutable blockchain ledger that can automatically route packages via multiple logistics service providers and their network services.
This way, as soon as a package is scanned and put into the network, the system will choose the best routes that you can use to connect to shipping providers and increase the efficiency of the delivery. All the information will be stored on the blockchain, so it is also a very good way to keep track of all the information and not lose the item along the way, as you can always see where the package is.
The author of the blockchain patent stated that this system could even be used to interlock DLT networks that could use smart contracts or a similar technology to automatically pay many parties on the supply chain as soon as they finish their parts on the process. The patent states that the system could also be used on top of a blockchain that has already been developed.
By using this system, the company could use Bitcoin, Ethereum or Litecoin, for instance, to pay automatically the companies along the supply chain as soon as they do their part. By deciding routes and paying automatically, this technology could help the UPS to automate a huge part of its shipping process and, because of this, save a lot of money.