According to a forecast from the President of Valencia Chamber of Commerce, José Vicente Morata, Blockchain technology will be adopted in the global logistics chain in the mid to long-term outlook.
The technology will help in building and deploying platforms that are safe and distributed to better manage logistics transactions.
Additionally, Distributed Ledger Technology (Blockchain) will see a surge in adoption in other areas such as transport, and most industry use cases.
How Blockchain Technology Can Streamline Logistics
Blockchain technology has a number of features and protocols that can be applied in the logistics chain to eliminate challenges and create efficiency.
The first benefit of Blockchain incorporation to logistics chains is that it can secure logistics platforms. This is due to the fact that the DLT is distributed in nature which allows different computers/devices to capture and report data. The decentralization makes the Blockchain-powered networks safer, unlike the traditional centralized networks that can be attacked and broken into.
The second benefit is that Blockchain technology eliminates intermediaries who have been known to slow down transactions. For example, in international trade, banks are third parties in trade financing processes. A Tokenized Blockchain platform can enable importers to pay with Tokens in real time as the smart contract and on-platform protocols can confirm/prove that the exporter meets the expectations of the importer.
offer transparent registry services that can be verified.
Fourthly, Blockchain platforms are scalable and will not need to be changed when transactions increase in the long run.
Lastly, Blockchain is not constrained by geographical settings. Therefore importers, exporters, port authorities and other stakeholders can expand their footprint to the international space.
Proof-Of-Concept Project Is Underway
The Ports Commission of the Spanish Chamber of Commerce convened a symposium that explored the role of Blockchain in the logistics industry.
Part of the symposium delved in exploring the historical information on how digital computers and the internet transformed industry operations. This consideration aims at establishing a framework of how to kickstart strategies of modeling businesses in a Blockchain concept.
The bottom-line resolution of the symposium is that Blockchain should be adopted in the logistics sector as it can proffer scalable solutions, auditable records, and transparency, among other benefits.
Further, the concept of Blockchain integration in logistics can connect maritime activities of a country by connecting ports, government authorities, hubs, and logistics platforms, to enhance connectivity, create competitive logistics environment, and facilitate data-driven governance.
Spain Is Leading The Transformation
The use of Blockchain in port logistics will be unveiled in the Spanish port of Valencia which is the largest in the Mediterranean by container traffic. The port is connected to 1,000 global ports and handles 36% of Spain’s trade which makes it ideal for setting a technological example of the opportunities of Blockchain.
In general, ports are pivotal in international trade as 80% of international trade is maritime-based.
For the time being, the successful development of a Blockchain logistics for ports is subject to regulations, port governance decisions, and international traders who have to be sensitized on both the risks and opportunities of DLT.