Transportation & Blockchain Simplified: The Basics

In the last 24-36 months, blockchain has become an increasingly used term in the transportation and logistics industry. For tech guys and gals, it has been utilized in many different scopes and projects including the well-known bitcoin and other payment processing/currency platforms. Blockchain is at the forefront of technology and will likely see continuous growth being utilized in many other areas of our economy. The most interesting thing about blockchain (to me, someone in the transportation industry) is the fact that it seems to be appealing to so many leaders in this industry. That is a rarity for trucking, transportation, & logistics. Most people would agree trucking/transportation tends to be a laggard in regards to new tech adoption, innovation, & futurism. For the first time in a long time, the industry (as a whole) seems to be on the same page. Not only is blockchain considered to be an amazing answer for so many industry problems, but trucking & transportation is now looked at as needing to be a leader in this regard; not a follower. 

WHAT IS BLOCKCHAIN?

The purpose of this article is to go over a few basics of blockchain for those of you who may not have been as studious on the topic as of late. Let's face it, new technologies are released nearly by the minute and it's hard to keep up!

Blockchain is a shared digital ledger that is secured via cryptography. This ledger is stored on a decentralized network that is distributed and available to all parties involved. Every time a new transaction or modification is made, it is tracked in the ledger for all parties to see. This makes it so that everyone is able to have access to a transparent and accurate record of all information and the different 'versions'. Previous changes or transactions in the ledgers history cannot be modified without making a new entry.

WHY DOES IT MATTER?

Blockchain matters because it has practical applications to nearly every facet of the trucking and transportation industry. Here are a few examples:

Contract Management & Smart Contracts: By having a transparent way to verify and distribute contracts (such as brokerage contracts, customer contracts, insurance contracts, etc.), not only will these processes be much easier, but they will also keep all parties involved honest. 

Payment Processing: This one is a no-brainer for most everyone in the trucking industry. With most payments being delayed due to missing paperwork (such as bills of lading or receipts), this will allow for all parties to see not only what is needed for payment to be remitted but when it was remitted.

Supply Chain Management: Companies like Walmart are already using blockchain to evaluate food safety in tracking farm origination details, batch numbers, factory and processing data, expiration dates, storage temperature, and even shipping details for pork. Being able to utilize blockchain in this way will give warehousing and distribution companies a huge leg up in the supply chain atmosphere. 

Asset Tracking: Maintenance is always a key factor in ensuring a transportation company's success. Blockchain will allow for one of the most accurate and transparent 360-degree views of all equipment from the second it's built, to when it leaves the manufacturer, to the dealer, and on the doorstep of the buyer. Following up and tracking preventative maintenance will now include incorporating information from other companies with similar equipment; meaning better preventative schedules and more up-time. 

Sensitive Information/Profiles: Driver DQ files, for instance, are a large part of the back office's responsibility in ensuring the overall fitness of a trucking company's driver staff. With things such as the D&A consortium being pushed in the coming years, blockchain will only add to usefulness and ease of tracking all of this information.

WHAT'S HAPPENING NOW? 

Organizations such as the Blockchain in Transportation Alliance (BiTA) have begun popping up to further push the importance of blockchain and creating transparent and realistic regulations/rules. As I mentioned previously, companies such as Walmart are already implementing blockchain to more easily manage areas of their supply chain. Blockchain also continues to move forward with currency and has made huge impacts in the financial sector.

One thing is for sure: blockchain is here to stay. I, for one, am excited to be involved in an industry that is very well aware of the impacts it will have on its future. The next 5 years will surely be interesting! 

If you are a driver looking for a new professional Class-A driving job and are looking to be respected and paid like you deserve, please contact Truckers America Corp. at 877-789-5778 ext. 2. As a Truckers America driver, you get paid a salary plus additional bonuses. That’s it. There’s no catch. Most of our positions are typically home daily or home every other day (layovers). However, we do pay our OTR drivers quite well if you’re looking to stay out over-the-road. Call and speak with us so that you can make an informed decision. We hope to be working with you soon!

Also, check out Truckers America's blog here: www.truckersamerica.com/truckersamericablog