Blockchain is the new buzzword in… well, everything ..... Including Logistics. We have written this blog as a way to help explain blockchain from a non-technical perspective and how it can assist in global e-commerce. Decentralized networks based on blockchain principles: Share, verify, trust, rinse, repeat (with the emphasis on trust).
The pandemic related challenges for global logistics are reigniting the concept of sharing of data blockchain data sharing processes. The blog explores explains core concepts of this increasingly used industry buzzword (that seems to buzzing even more recently).
Sharing of Data for e-commerce companies is increasingly important for securing "direct order cross border" supply chains. To the USA, for example, the requirement for data from postal parcel imports exponentially grows the data requirement.
Block chain processes present an opportunity to access the necessary ledgers containing the data needed across the life of the parcel from export, import to delivery.
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Supply chains are dependent on multiple handoffs as goods make way being sourced to being sold. Blockchains provide a common ledger of shared contents and transactions with the potential to bring incredible visibility and efficiencies.
Moving Parcels = Moving Data
The exponential growth of e-commerce cross border orders has also expanded the need to share data across systems and processes like never before. Instead of tracking, for example, ten ocean containers containing a single product, systems now must adapt to handle tens of thousands of individual orders ins the same sized containers.
The demand for data helps facilitate security, import control and assessment, and collection of VAT for cross border e-commerce parcels.
What is blockchain?
While it is said that blockchain technology and processes will change the world, most everyone (especially the non-techies among us) are trying to understand the concept itself.
Blockchain is so much more than just bitcoin
The terms "blockchain" and "bitcoin" are often used interchangeably but they are in fact different: Crypto-currencies such as bitcoin are applications that use blockchain technology.
Blockchain is a way to share, update and secure data. Using blockchain processes, ledgers can be updated from any network participants. Updates are verified and secured using a combination of prescribed protocols and complex algorithms (often described as computational forces).
Blockchains can be part of the public domain (as are crypto-currencies) or a private consortium with limited stakeholders (see below).
Baseless data
Today, data is centralized and controlled by a few mega players. Data storage processes are proprietary with full access granted only to the owner of the data. Control of data contributes to billions of dollars of market capitalization for the tech elite.
The promise of blockchain is to allow data to be decentralized, easily shared, accessed…. And trusted.
Share but verify
The promise of shared data is only promising if the data being shared is authentic.
Sharing and updating data is easy. Maintaining trust is the challenge.
Establishing trust without central authority is the essential feature - or promise- of blockchain.
1. Verifying Data via “computational force”
Blockchain can establish trust mathematically via complex computer algorithms that - for now - are said to be virtually impervious to hacking.
For crypto-currency, such as bitcoin, trust in data is achieved through complex formulas and a computational force that ensures authenticity through a “consensus mechanism.”
Each transaction is verified and synced with every “node” affiliated with the blockchain before it is written to the system.
2. Verifying Data via Network Protocols
Companies across all industries are seeking to access the power of blockchains through alliances with various stakeholders.
An example of a logistics blockchain alliance: BITA
The Blockchain in Trucking Alliance (BITA) is a forum for the development of blockchain standards for the freight industry. BITA’s membership includes major logistics providers such as FedEx, UPS and Purolator Canada.
Trust via network protocols will likely demand contractual commitment by network participants as well as computational verification methods to ensure compliance.
Trusted private blockchain networks are quickly coming on line in a variety of industries to track everything from diamonds (from mine to final sale), ocean containers (to increase utilization), and agricultural products (from farm to table).
Blockchains enable greater visibility and security when there are multiple changes of custody. Events can be cross referenced, verified, updated and accessed in real time. Once confirmed and posted, historical events and data trail cannot be modified and themselves form the basis for confirming the authenticity of future postings.
Jet Worldwide helps companies integrate their data for efficient high volume direct order parcel clearance to the USA and Canada.
Big Data of a Few versus Small Chunks Everywhere
Via Blockchain processes, data is shared, verified, updated and accessible across all network participants. As the individual “nodes” of data grow exponentially, the traditional databases of today will be dwarfed and rendered insignificant. … or so the theory goes.
Chain, chain, chain
The goal of sharing, connecting and trust in supply chains are so commonplace as to seem cliche. The embrace of blockchain by logistics providers is a way to ensure they remain relevant in the ever changing world of global e-commerce.
Jet Worldwide: Connecting people, parcels and businesses around the world.
At Jet Worldwide, we consider parcel delivery as the physical connection in our virtual world. Not just e-commerce but "direct order, cross border, e-commerce."
We help retailers and online merchants connect their data to integrated high volume express consignment clearance processes for integrated solutions. To and from Canada and the USA.
Trusted virtual sharing of data will ultimately allow greater sharing of actual goods and allow more seamless connections in the global virtual marketplace.
