Blockchain technology is emerging as a key solution for the logistics sector

Blockchain technology is emerging as a key solution for the logistics sector

One of the key solutions for the evolution of the logistics sector begins to be blockchain technology, according to the report How Blockchain impacts on Logistics 4.0, developed by Minsait, a unit of Indra in collaboration with the Business Organization of Logistics and Transportation.

The conclusions of the report were presented last week at the Logistics & Distribution Fair. According to Fernando Cuenca, director of Digital Practices at Minsait, the blockchain contributes to a cultural change that «will redefine the current relationships between organizations». Cuenca believes that companies must «be able to respond to new models and define a strategic approach that allows competitive advantages» and, to do so, must understand the implications that blockchain represents «in terms of new models of disintermediation or cooperation and the benefits that it brings in these new scenarios in relation to trust, transparency, traceability and automation of operations «.
Change in digital models

The report conveys how the blockchain is assuming a change on the digital models that exist today and that revolve around trusted third parties. For example, when we make a payment online, the website contacts our bank or bank entity (which would be the third, in this case) to authorize that transaction.

However, the blockchain technology promotes new ways of doing where a central or trusted authority is not necessary and in which the information, through a common and secure system that ends with the silos of information, is very distributed and replicated, giving rise to a ‘single source of truth’ that is common to all the organizations involved, shared and supervised by all of them.

Opportunities for the logistics and transport sector

Sectors such as finance, international trade, automotive, electric or public administration, where participatory processes are encouraged, are already making use of this new technology to improve their operations.

Although this is a sector in which few steps have yet been taken, Fernando Cuenca considered that the logistics and transport companies are at a favorable moment to address blockchain projects «with an integral approach and a progressive implementation».

Likewise, it facilitates the programmable economy and commercial transactions, making possible the formalization of Smart Contracts that have the ability to be executed automatically once they have been defined by the parties. With the blockchain and block chain technology, which allows these contracts to be stored outside of anyone’s control and that can operate autonomously and automatically, their viability is more possible than ever, giving rise to a new scenario of business relations.