According to the research done by the professionals, about eighty percent of the world wide trade is known to be carried by maritime transport. However, a new change is coming to the integral part of the economy.
We live in a new era where computer coding and digital information are known to be the new drivers of the future world. There is no denying the fact that these are the drivers that will not only innovate but also bring a change in the shipping industry. There are a number of commercial contracts all over the world that may become smart contracts which are coded with the help of computers. Now this is where the application of blockchain in shipping is specifically beneficial in digitising smart shipping procedure.
What is a blockchain?
Blockchain is a special form of organised distributed ledger technology. All of the transactions are related in a sequence of the blocks. The best part is the blocks can be locked, closed, and further new blocks can be added to the chain with the help of digital coded transactions. The blocks are recorded and stored in the right manner with specified and fixed numbers.
Blockchain algorithms can add more blocks with the help of private and public key cryptography. To people who are new to the concept, it is a self governing system where cryptography is responsible to verify all the information about the permanent blocks of the data. This is hence, a safe and secure procedure of verification of transactions which not only keeps a record of when the transactions are done but also ensures that only the intended recipients have access to all the information related to the same.
- Privacy: Blockchain is a distributed ledger technology. In simple words, this means that every party involved in the shipment has access to all the details. In addition to this, they also have a secure audit trail of all the shipments. The peer to peer network has safe and secure transactions. All thanks to cryptography. The people using it find out the protected information with the help of crypto-programming and permission-based sharing. Each party has the right to protect sensitive information, such as customer data.
- Reliability: The blockchain based tracking system is more accurate. The reason behind the same is it enables all the members on the platform to take a look on the ledger then and there. In addition to this, they have access to the data which is secured then only. This means that the freight forwarders, port authority, and carriers can enhance the logistics by taking a look at the whole progress of the shipment.
- Immutability and security: You may be happy to know that all the records are encrypted individually. All nodes which are comparable to small servers contain a copy of the same record. Any validated record which is in the blockchain cannot be changed and is irreversible. All the documents which were exchanged in real time cannot be altered. This is what lessens the risk of fraud. Take the example of a bill of lading in consideration. It is exchanged amidst the participants in the network. These are the participants whose rights are coded. All the transaction is encrypted with the help of a key that is connected to relevant participants. This lessens the risk of a number which is undefined.This Bill of Lading cannot be misrepresented to avoid import taxes.
The Key Takeaways
These are some of the factors you need to keep in mind when it comes to blockchain container shipping. To gather more information about the same, you can always seek help from the internet and the experts who have years of experience in the industry and know what their customers need.