Application of blockchain technology in transport and trade
The invention of cryptocurrencies has brought about major changes in the way we think about payments and their security. Modern solutions inspired by this phrase appear on the market, already used in many branches of the economy. In this article, we briefly discuss the use of blockchain technology in transport and commerce!
How does blockchain work?
Blockchain technology is based on the bitcoin cryptocurrency. It is a response to problems related to data security, and more specifically to the way they are encrypted in a distributed database, i.e. the so-called blockchain. Thanks to it, anonymous users can make online payments without an intermediary – the bank’s central server. Then the transaction history is not saved on one server, but in the memory of individual computers. Data falsification is prevented by saving them in blocks connected in a chain, using file identifiers.
To sum up, blockchain is a common, verified, reliable record of transactions, and more precisely – an encrypted, protected decentralized database or even an accounting system. Every network user has access to it, but cannot modify it.
How is blockchain used in transport and commerce?
Information is of the utmost importance in logistics – huge amounts of data are exchanged all the time in trade and transport. Thanks to blockchain technology, they can be publicly available, and at the same time completely safe. In this way, many common problems can be solved, such as: control of the origin of goods, verification of the originality of goods or compliance with various legal regulations.
While the cargo is transported not only between countries, but even continents, it is monitored not only by the producer, carrier and recipient. It is also subject to supervision by the authorities of the countries concerned. Blockchain technology works like a large, decentralized accounting system, for the benefit of all parties – it ensures that everything is conducted legally, there is no abuse, and all data is confidential and secure.