How blockchain can fix the transport hazard
As blockchain makes its mark across different sectors, the transport industry is also expected to go through a series of developments. On a daily basis, 6.3 billion people commute across local, national and international borders, as stated by WazirX, a cryptocurrency exchange. Furthermore, in a separate study by the International Businesses Machine (IBM) Corporation, an enterprise technology company, of the 16 countries, 77% of transportation residents expect to have some kind of blockchain integration within the next three years. “Blockchain can be used to store various forms of data such as weather information, Global Positioning System (GPS) and accelerometer monitoring, accident records, crew information, inspection and certification results, mileage, among others,” Vikram R Singh, Founder and CEO, Antier, a blockchain development and consulting company, told FE Digital Currency, adding that blockchain can provide real-time order tracking and verification solutions to increase demand for same-day and one-hour delivery services.
According to experts, through blockchain’s decentralized ledger technology (DLT) protocol, which is a digital system for recording transactions of assets, transport companies can remove the dependence on extreme paperwork. It is believed that the presence of a decentralized digital database removes the need for a centralized authority to keep track of data manipulation. “The impact of smart contracts can allow faster clearance of transactions in customs, to reduce processing time for goods and services. Inspections of truck fleets, routes, traffic problems and associated operations can be assisted with blockchain solutions. It has the potential to increase security, transparency and reduce the possibility of fraud,” said Sakina Arsiwala, co-founder, Taki, a token-powered social network.
Moreover, various reports have stated that a blockchain-enabled transportation system has the ability to be smart, cost-effective, universally standard, and profitable in the context of the current scenario. Market behavior has shown that smart contracts can provide financial savings for infrastructure and maintenance costs to transport authorities, as they eliminate the need for third-party processors. According to Vineet Budki, managing partner and CEO, Cypher Capital, a blockchain-based venture capital firm, blockchain can track the end-to-end movement of goods through the reduction of clerical errors and blind spots. “Blockchain has the ability to shift economies for last-mile deliveries to eliminate middlemen and create opportunities for small-scale businesses. Smart contracts can help improve transparency among counterparties,” he added. Despite several studies on the positive impact of blockchain, it has not yet been implemented in the transport sector.
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