Accuracy of product shipment with blockchain and bitcoin
- December 26, 2022
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From your morning cup of coffee to the power company, there are so many steps in the process that a single part can fail and cause an entire shipment’s worth of product to be held up. You can check bitcoin trader2 to begin bitcoin trading with the right tools, trading strategies, and guidance from experienced traders. However, it becomes a real problem when product cost increases due to shipping costs, and businesses lose high-margin items because they didn’t arrive when promised.
Blockchain technology and bitcoin offer new opportunities for accuracy, security, speed, and more trust between partners at every point of the chain with lower processing fees for merchants. With blockchain technology and bitcoin, businesses can build trust between each other. As a result, corporations have the right to manage their work more efficiently without needing third-party intermediates.
Blockchain and bitcoin to the rescue!
In the past, they had problems with delays at different stages of the chain. Besides, their information was not secure, and their storage capacity was scarce. Nowadays, everything is possible quickly, securely and with high capacity in a decentralized way without any problem. It is so attractive that many companies are willing to invest in this technology. It has proved its worth in many ways and is getting more critical as time goes by.
Blockchain and bitcoin eliminate risk on the supply side during shipment by tracking the product’s origins at each step of the distribution process and ensuring that it has not been compromised. With a decentralized ledger, if a problem occurs along any point of that distribution process, it is recorded in an immutable way that’s easily verifiable and cleanly traceable back to any single source. The visibility and transparency also give consumer confidence about where their goods are coming from and what’s in them.
Accuracy and verification!
One good side effect of these many supply chain steps is that each can act as a checkpoint to verify the information before moving on to the next stage. It can make it easy to verify both the provenance and the contents of a shipment, which is a massive boon for any business dealing with perishable or otherwise easily-compromised goods that must be kept in a compliant state.
If the shipment step has been responsible for the product being compromised, one can backtrack through the chain to find out when someone first broke protocol and do something about it. The shipbuilder’s name and address are stored in a blockchain instead of paper certificates. That will improve transparency for end customers who want to know where their luxury yacht comes from and how people made it. Transfer of rights can be automated and depreciation calculations, saving time in administration processes.
Blockchain and bitcoin are immune to cyber-attacks!
Cyber-attacks are becoming more sophisticated and frequent, and blockchain could provide a way to keep data secure and tamper-proof. For example, a shipment’s contents can be encrypted with a public key before being sent to the customer, preventing any tampering with the contents of the containers. In addition, the public key can only be decrypted using a private key held by the receiver, so there’s no chance that an attacker would be able to open or modify any data without permission.
Shipping companies are already using blockchain technology as a way of tracking shipments. For example, Maersk, one of the largest shipping companies in the world, has been testing blockchain to track and verify shipments.
Banks also use blockchain technology to track transactions in their networks more efficiently. For example, JP Morgan recently announced testing a blockchain to track its bonds and other securities.
Use of smart contracts in the shipment industry!
The shipping industry includes many players. They are all intermediates in the process and charge a lot of money for this. If a person sells goods to another, he should know immediately whether the second one accepts goods or not and what amount he accepts.
Of course, this risks also mean that the second person could reject goods without any reason, so in this case, a sender loses money that can be several thousand or even tens of thousands. Refusal of purchase is risky, but it happens, often wastefully. A purchaser should state beforehand how much they are ready to pay for the goods, and sellers should state how much they are expecting for their goods.
Using the smart contract, all terms of the trade are listed on the blockchain, and both parties sign it. In this case, we will have a correct and transparent way to track shipments and make business more efficient. It is difficult to say whether such a system is needed, but it may be helpful to large corporations with time. For now, Blockchain technology has been used only by large companies, but it could be easily used by small ones who want to save money and time in business processes.
The companies that invest in this technology will be more efficient, with more resources and a more straightforward work process. People can use it in many ways, but first of all – it can help to save time and make processes quicker.
It is not necessary to create a new company or invent a new concept; it would be enough to use the existing opportunities and take advantage of them. Blockchain could make the business more efficient because the steps in the supply chain could be made faster, safer, transparent and reliable for all parties involved in the chain.