One of the most commonly heard terms in recent times is blockchain technology. This technology is exponentially routeing the ` and services, reducing halting procession time, real-time tracking issues, and all the paperwork and government-related things related to transport. The rising popularity of blockchain development in the transportation industry indicates its increasing rate of adoption. Blockchain-enabled transportation technology is becoming popular for its revolutionary efficiency, security, and transparency-related features. It is exactly the situation where the services of a premium blockchain development company come to the rescue of the transportation industry by making the best use of blockchain technology.
Read on to understand what blockchain is, how blockchain revolutionizes the transport industry, and the unique features blockchain adds to the transportation industry. We’ll also focus on the requirement of blockchain for solving real-world transportation industry issues and increasing customer satisfaction and the few companies that are implementing blockchain successfully into their logistics systems.
Importance of Blockchain in Transportation Industry:
Trucking, transportation, and logistics are three of the multi-industries maintaining the lifeline of other important industries. Transportation is also one of the pillars of the total production of a country. eCommerce, Manufacturing, Supply Chain, and similar industries are a few regular users of transportation services.
Over the course of time, the standard requirements for transportation services are increasing as the global population increases. Moreover, after the COVID breakdown, millions of people faced a sudden swap of regularity. It startled the basic offline monopoly of buying and selling things. Online shopping was already rising, but COVID-19 rapidly ignited the fire. That also unfurled the eCommerce revolution and transportation requirements.
Also, business 3.0 tactics apply great importance to customer management and satisfaction. Product and service providers want their customers to experience same-day delivery, real-time product tracking information, and hassle-free buying, carting, and payment submission-related things.
As the requirement increased rapidly, technological innovations summed up the transportation services and enhanced their efficiency. Blockchain technology is something capable of boosting the transport ball game altogether. Since 2008, after blockchain came under the limelight with Bitcoin, global enthusiasm around blockchain has increased.
But, understand what blockchain is and how blockchain helps any industry with distinctive features.
A Brief on Blockchain and Its Essential Features:
Blockchain technology is a decentralized, immutable, and transparent ledger system that facilitates and records every transaction record and tracks business assets in a business process. Here are the features that blockchain provides.
Blockchain technology is decentralized, which means there’s no centralized server system. So, blockchain is nearly indestructible and safe as hackers can’t access blockchain through any physical reference.
Blockchain ledgers are transparent; every participant in a blockchain network can access every block’s pieces of information and data.
Hackers hardly have any ways to devise a blockchain network and extract information from it. So, a blockchain network is more secure than any other traditional system.
4 Major Ways How Blockchain Technology Helps the Transportation Industry:
Now, let us dive a bit deeper into the topic to understand how blockchain technology benefits the transportation industry.
Blockchain in Vehicle Management and Pricing:
Blockchain is undoubtedly well designed to track the transportation system. But, what about a vehicle’s efficiency tracking? Can blockchain track a vehicle’s efficiency and help to price perfectly?
Well, global blockchain innovations by the blockchain development company groups are also helping in vehicle valuation, depreciation and scrap value determination, and proper pricing on vehicles.
Vehicles with digital authentication are capable of doing these measurements. It can track accidents, fixtures, annual maintenance, pollution report, each part’s efficiency and proper estimated working lifetime (With IoT sensors), and more related to a vehicle. This information will get stored in a cloud-based blockchain ledger and can be used during future vehicle negotiations.
Blockchain In Vehicle and Traffic Management:
A recent hype toward blockchain use in Vehicle to Vehicle communication and traffic management is in the development stage. But, implementing blockchain V2V with IoT systems can change the vehicle and transportation management system, saving money through the proper vehicle and loading analysis, saving lives through road accident prevention, and more.
Companies implementing these services are saving their money and taking advantage of pre-streamlining their business. The streamlining process with blockchain analyzed data are pure, secured, and transparent factors. IoT sensors connected with every vehicle will provide an exact condition of the traffic, so there’ll be no problems.
Smart Contracts Cuts Away Intermediates:
Smart Contracts are one of the finest blockchain innovations that can revolutionize the structure of the transportation industry.
According to experts, Smart Contracts are unequivocally the only stand-by that can relieve the transportation industry from unproductive and irrelevant intermediates.
Smart Contracts are self-execution bits of intelligence predefined and coded to meet and execute certain conditions. For example, shippers don’t have to connect with an accountant to get their wages; freight companies can pre-defined their Smart Contract to pay shippers when they complete a certain delivery process.
Where tons of paperwork and un-required workers waste their time processing transportation-related processes, blockchain-based Smart Contracts can easily automate all things within a time crunch. Several times, human intervention brings unnecessary human errors to work, setting black swan events for the company and sometimes the galactical industry.
That’s how effective a Smart Contract is while meeting expected situations recurrently and also setting the expectations up higher with future potential events.
Blockchain intervention in the transportation industry is providing foreseeable results, and everything is moving towards a positive note. The previous reports suggested some major problems in the gross transportation sector like payment disputes, high procession, and administration costs. Blockchain is clearly addressing payment dispute problems and providing results with automated smart contracts and alternative finance systems. Blockchain-based distributed hyper ledgers are capable of keeping an eye on vehicles and management, reducing paperwork and time taking processes, and enhancing the system feasibility. So, to leverage the potential of blockchain technology to the fullest, it is always recommended to hire any of the trusted, reliable, and reputed blockchain development services for obtaining the best possible results.