Imagine the situation: the seller ships a consignment of fruit and throughout the way the buyer monitors the container to make sure that for sensitive goods are kept in the optimum temperature. The freight forwarder and the port administration can easily and timely transfer of the customs certificate. After delivery, the buyer signs the documents with an electronic signature, which the seller receives within a few seconds. Fantasy? No. This is the present day of shipping that has been made possible by blockchain technology.
What is a blockchain? It is a distributed digital book that has enabled digital transactions with undeniable benefits such as security, decentralization, public verification at any stage, and irreversibility.
The main storage server is missing. All records are stored by each participant in the system. Any participant can track all transactions that took place in the system. All data is stored in encrypted form. The user can track all transactions, but cannot identify the recipient or sender of the information if he does not know the wallet number. A unique access key is required to perform operations. Any attempt to make unauthorized changes will be rejected due to non-compliance with previous copies. Legal change of data requires a special unique code issued and confirmed by the system.
Transaction information, such as digital signatures, timestamps, unique identifiers, and so on is kept in the block. Once it is added to a blockchain, the unit is sealed. The transaction is complete and cannot be changed.
Blockchain system in maritime shipping
The maritime industry, which has long suffered from paperwork, delays, and disunity between supply chain participants, has begun to realize the potential of blockchain technology to transform transportation management systems. Generating and executing agreements through a blockchain allows you to more accurately keep records, track goods, and manage the fleet. The proper execution of contracts could be verified by the network of computers. This, in turn, allows insurers and policyholders to better assess the risks.
Several stunning blockchain-based innovations have emerged in the shipping sector, which have given rise to radical changes in the industry:
- Two years ago, the first bill of lading was issued electronically and the whole operation took only a few minutes - just a fantastic improvement considering that the transfer of a bill of lading traditional way normally takes weeks. Furthermore, the risk of loss, or theft was eliminated due to the closed blockchain transaction in maritime transport.
- Speaking of the utilization of blockchain technology in shipping, it should be noted that the first marine insurance blockchain platform was launched to allows insurers, customers access shared books with up-to-date information on assets, risks, and parties to insurance contracts. Now the use of blockchain technology in shipping has become the new normal.
Conclusions
The use of blockchain technology in maritime transportation is fundamentally changing the approach of maritime participants to the exchange of information. Innovations in blockchain traffic management create the conditions for more economical, transparent, safe, and comfortable supply chains for all parties involved.
Our specialists constantly monitor innovations and changes in the blockchain and cryptocurrency industry. For advice on using blockchain technology in shipping or other industries, advice on registering a crypto-company, and other related issues, do not hesitate to contact us directly at the contacts below.
