Recently, there has been a lot of speculation around the future affect of Blockchain technology on the logistics industry
What is Blockchain?
Blockchain is a new, ingenious technology that is a digital leader that helps make transactions in Bitcoin or another type of cryptocurrency. Blockchain helps record the results of those transactions both publicly and privately. Blockchain is the technology behind bitcoin that helps it run more smoothly.
Wall Street, for one, is in favor of simplifying how the blockchain technology professes transactions to make it run more smoothly. Ideally, one day, many people see bitchain running the process of making virtually all online transactions for businesses.
What Would Be the Positive Effects of Blockchain for Logistics Companies?
While this technology may not sound like a big deal or an interesting development it can have many positive impacts on a business and how smoothly it runs, including the following perks:
- Helps eliminate back-office costs for the company by helping do what companies used to have to hire accounts and other workers for.
- Servers store information when each transaction is initiated.
- The database the transaction information is stored in is safe and secure.
- There are no approvals that have to be made by the back-office for the transaction to be able to occur.
- The database software is written so that double-transactions are avoided and information is not stored more than once.
- Allows transactions to occur between unknown parties so new customers can purchase whenever they like.
What Would Be the Negative Effects of Blockchain on Logistics Companies?
While there is no doubt that blockchain could provide companies with many benefits, there could also be some downside to using this technology as well. A few of those could be the following:
- Using blockchain eliminates many back-office jobs for people that work in that field if it becomes widely used.
- While there are safety features on blockchain, it is likely able to be hacked in someway.
- It's a new technology so not a lot of companies have used it yet. If a company adopts this as a form of "currency" it may be awhile before other companies are using blockchain as well.
- As with any new technology there are upfront costs to implement blockchain into a company's current technological framework.
In the end, it depends on what works for each individual company as to whether they should use what blockchain has to offer. Each company is different, and it depends what they are looking for as it if blockchain is right for them. Studying up on all the nuances of blockchain and understand what purposes it's intended to serve will help the company make the right decision for them.