One of the largest industries in the world, global shipping covers every continent and involves trade in almost every country on the planet, with over $4 trillion in goods being moved around the world each year. However, the systems that enable all of this have not changed in 60 years, and in many cases still rely on matching physical paperwork with shipments and payment data. Blockfreight recently announced their new initiative to leverage the power of blockchain to streamline the administration and tracking of cargo and revolutionize the shipping industry itself.
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Global freight shipping is big business, with over $4 trillion worth of goods moved each year, but the processes of the industry have not changed since the introduction of the standardized shipping container sixty years ago. That container helped bring significant cost reductions for operators then, and Blockfreight, the business behind the latest innovation, aims to shake up the shipping industry just as much with its new technology that was made public recently.
Blockfreight is creating an end-to-end blockchain solution that will alleviate issues within the existing systems that still rely on the manual matching of paperwork, payments and goods and has a convoluted settlement mechanism.
To remedy this, Blockfreight aims to leverage blockchain technology to offer smart contracts that permanently tie the bill of loading, payment details and ownership amongst other important elements, to each cargo shipment. In addition, the Blockfreight system will provide a tradable token that utilizes the Bitcoin blockchain infrastructure to enable transaction fee payments separate to the data logging systems, along with an alternative data storage solution based upon the Inter Planetary File System, should any data for a cargo shipment be too large to fit into the blockchain block.
This dual blockchain system utilizes both Bitcoin blockchain and Ethereum blockchain, the two running in parallel to ensure a robust system that will not collapse under its own weight, the concurrent system for transaction fees reduces load on the important data stream and provides increased stability.
Because of the decentralized nature of Blockchain, supply chains become more reliable under its management, becoming impractical to attempt fraudulent actions within the supply chain, thus reducing costs and increasing efficiency within the shipping ecosystem.
For the cryptocurrency industry, it is clear that blockchain is going from strength to strength, with each new initiative it is being proposed as integral to the largest infrastructure components of global trade and commerce, and is undoubtedly going to be a key part of our world in the future.