By
Godfrey Benjamin
April 12th, 2024
Blockchain can provide visible and controllable supply chains as an immutable ledger of data.
Blockchain seems to be the best solution for various spheres to improve financial processes or information storage and distribution. Logistic companies have been examining the technology to adapt it to transportation arrangement.
Cumbersome logistics processes include huge amounts of paperwork, insurance and legal issues, customs clearance, cargo tracking and abundance of intermediaries. As far as supply chains may consist of thousands of miles to go and dozens of borders to cross, it can be hard to trace the origin of a product. You can add problems with smugglers and drug traffickers here to imagine the amount of efforts logistics companies take to make the process run smoothly.
How blockchain can help
Being an immutable ledger of data, blockchain can provide visible and controllable supply chains. The technology can automate most of the paper work and ensure constant control of all movements of the cargo.
Multiple companies all over the world have already started deep studies of blockchain and test it for logistics processes. Wells Fargo and the Commonwealth Bank of Australia used the technology to send cotton from the USA to China using smart contracts. Several companies and firms in Netherlands leveraged blockchain to arrange their supplies. Logistics giant Maersk introduced blockchain to cargo tracking together with IBM.
Full-scale logistics systems based on blockchain
While the above-mentioned companies address particular parts of the problem, there are full-fledged blockchain-based systems focusing on the whole industry. Blockfreight and A2B Direct are among the most considerable ones.
Blockfreight, Australian startup, aims to use Ethereum-based smart contracts and its own tradable token BFT:XCP to revolutionize container transportation. The company has announced the ICO with cap of $1.9 million to fund the development of platform.
A2B Direct has already developed a platform similar to Uber that facilitates interaction between freight forwarders and cargo owners doing all involved paperwork. With its ICO starting today, A2B Direct targets to finance transferring the platform onto blockchain. This solution is expected to reduce expenses for international transportation, make business easier for both carriers and customers who will be able to work with fiat and cryptocurrencies at the same time.
The campaign that will last for one month intends to raise €500,000 to €3,000,000.
A2B Direct will totally release 30,000,000 tokens. The company sets a minimum contribution of 10 USD for which one may buy 100 A2B tokens. Investors will be able to contribute in Bitcoin, Eth, and Dash, and will have to register a personal wallet to run all financial operations during the campaign and later receive dividends for the company’s further operation and progress.
All this demonstrates huge chances that blockchain will become a part, or even a base, of international logistics. This will considerable improve the process for parties directly involved in the transportation of goods as well as for end customers who will be able to constantly control the whole supply chain.