In the past several years, blockchain technology has rapidly achieved global prominence. Deemed an important driver of the fourth industrial revolution. The logistics industry is considered by the insiders to be the field with the highest potential for innovative application of blockchains besides the financial industry.
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The logistics industry has broad prospects. On the scale of the global market, it will reach $12.256 trillion by 2022, but still remains behind in terms of technology and operation. This is due to the decentralized nature of the industry, which has caused the entire logistical process to lack transparency, many important areas of accountability cannot be attributed to any one participant.
One might say, blockchain provides a logical course for the standardization and digitization of the logistics industry. At present, blockchain teams from logistics giants have tested the logistics public chain, but whether they can match technology to business, or whether it will have value for large-scale commercial application, has become an important criterion for judging the success of a public chain.
Exploring Eight Application Scenarios
As the world’s first public chain based on EOS underlying technology and designed specifically for logistics industry applications, the OPT team has delved deeply into the study of application scenarios over many years. In their latest white paper, they published their case studies in this field.
“Blockchain has a lot of advantages, saves time and costs, reduces risk and fraud. By utilizing blockchain technology, the logistics industry can optimize resource utilization, compress intermediate links, and improve overall industry efficiency. The head of the OPT team introduced the eight application scenarios one by one in the white paper.
Firstly, logistics platforms easily make chains: Since blockchain is decentralized and data cannot be tampered with, the cargo owner, drivers, logistics behavior and key information can be placed in the chain, allowing tracking of and accountability for issues. The logistics platform easily builds and deploys its own Dapp using the DAPP development engine module provided by the OPT’s BASS platform, solving the credit problem also solves the problem of high cost of blockchain development.
Secondly, instant matching of industry chain collaboration: Small logistics platforms fill the role of the transportation agent through the Dapp provided by the OPT ecology. In this process, the OPT’s advanced interface is used to search and screen inter-provincial long-distance transportation, multiple drivers planned iterations for inter-city logistics and same city deliveries, thereby creating an efficient logistics team.
Thirdly, traceability of goods: Goods from planting and production to delivery to consumers, the logistics links play a central role, allowing information about the loading, transportation, unloading, schedule, and responsible person to be totally uploaded into blockchain, so information about the whereabouts of cargo can be traced but not be tampered with. Taking food safety as an example, blockchain can realize complete traceability and visibility of “from farm to table” in the true sense.
Fourthly, logistics monitoring and driver dispatching: Logistics platforms can use the relevant Dapp on the OPT platform to manage routes and transport, monitor the entire logistical process, discover anomalies, follow up and handle them in a timely manner, as well as find and dispatch a suitable driver.
Fifthly, the whole process can be tracked: Logistics usually spans many steps, hundreds of geographic locations, and transport by multiple parties. Using the OPT related Dapp to connect each logistical leg as well as track the entire process.
Sixthly, security and privacy: Many manufacturers are concerned about data leakage during the logistical process. This has caused many logistics SAAS providers to lose opportunities. If the company quickly stores the information about customers, drivers, logistics transportation after encryption using the development engine provided by the OPT public chain, which can only be viewed with the customer’s private key, therefore, it can completely dispel concerns about data security and privacy.
Seventhly, insurance services: Uploading drivers transportation data to the blockchain makes it tamper-proof, which means credibility in terms of insurance and premiums will be reduced correspondingly, putting an end to insurance fraud.
Eighthly, supply chain finance: At present, there are few financial products for small and medium-sized brick-and-mortar stores, logistics, or drivers. This is because supply chain financial institutions are unable to obtain sufficient real data to analyze and evaluate a comprehensive credit limit. In the face of this rigid remand market, financial institutions can obtain valid data authorized by lenders using the advanced query interface on the OPT platform. At the same time, data flow creates a chain reaction, expanding value and profits.
Insiders believe that the multiplicity, small size, decentralization, and unpredictability of logistics companies are pain points of the industry. The eight applications proposed by OPT have practical significance. Their core meaning lies in using blockchain technology to create an efficient operating model based on the premises of automation and information sharing, ultimately reducing the cost of transportation and improving customer experience.
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Committed to Building the First Public Logistics Chain
Of course, everything has two sides. The coordination of “blockchains + logistics” also faces many challenges. For example, smart contract vulnerabilities, consensus mechanisms and private key protections, 51% attack, cryptographic algorithms and other technical security issues. There is also the talent aspect, and due to blockchains’ multidisciplinary nature, combining cryptography, mathematics, algorithms, and finance, the requirements for versatile talent are very high.
This requires the blockchain team to have highly skilled personnel and technological advantages in order to incorporate the logic of business in technology and application scenarios.
OPT is one of the top blockchain technical teams in the world. Team members not only have educational backgrounds at MIT, the University of California, the University of Michigan, the University of Southern California, and the University of Pennsylvania, they also have work experience at large-scale technology, finance, and logistics companies as well as many years of experience in the blockchain industry.
The head of the OPT team said that any new technology requires a certain development process, and believes that with all the team’s efforts, future blockchains can play a bigger role in logistics. OPT is committed to the use of blockchain technology to achieve intelligent logistics, solve the problems of information islands, system security, privacy violations, payment uncertainty, and low efficiency of overall industry collaboration as well as to achieving a logistical process that can be traced from origin to destination, to ensuring there is an accountable person at each link in the process and seamless delivery, and providing a simple, low cost, highly efficient, safe and reliable blockchain solution for the entire logistics industry.
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