Reliant Logistics Institute

Blockchain Technology


The Blockchain technology is not based on any new pattern, instead, it is based on the old template of a ledger – something that has been used to log transactions over a period of time. Blockchain technology includes mechanisms to ensure stored records are accurate, tamper-evident, and from a verifiable source. Thus, instead of maintaining multiple (an altering) copies of their own dataset, now ever stakeholder receives controlled access to a shared dataset creating a single source of truth. This gives confidence to everyone working with this data that they’re using the most recent accurate, and reliable dataset. Blockchain technology can be used for managing the ownership of digital assets and facilitate asset transfers. For example, it can be used to track the ownership of titles (e.g., land titles and diamond certificates) and rights (e.g., copyright and mineral rights). It can also be used to keep a track of the digital twin of a physical object in the real world. Blockchain has the potential to deliver vast savings by improving operational efficiency and generating value through new business models. However, as with many emerging technologies, considerable challenges must be overcome before blockchain can achieve mainstream adoption in all industries. Gaining industry adoption is the most critical challenge and this will determine the success of block chain technology in logistics. Being able to accurately and safely exchange information within a community is a key advantage of block chain and stakeholders benefit the most when their community contains many relevant members. Therefore, similar to Facebook, the value of the community increases when it is adopted by a growing number of relevant stakeholders. A powerful network increases the supply chain when stakeholder adoption reaches a critical mass. As more and more supply chain stakeholders participate, block chain becomes more valuable, evolving into an industry practice. However, it will be difficult at first to obtain stakeholder commitment because of differing levels of digital readiness and the initial requirement to recognize the mutual benefits of block chain-based collaboration. This will be particularly tricky when there are legacy processes, regulations and laws governing various aspects of the business, as stakeholders will incur cost to migrate from legacy systems and integrate with new systems and practices. Blockchain technology has gained popularity from its first deployments in cryptocurrency and is now likely to have a significant impact across almost all industries. Like a pebble dropped into a lake, the importance of this technology is beginning to expand outwards in all directions including the logistics industry, where blockchain promises to make business processes more efficient and facilitate innovative new services and business models.



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