As blockchain makes its mark across different sectors, the transportation industry too is expected to go through a series of developments. On a daily basis, 6.3 billion people commute across local, national, and international boundaries, as stated by WazirX, a cryptocurrency exchange. Furthermore, in a separete study by International Businesses Machine (IBM) Corporation, an enterprise-technology company, of the 16 countries, 77% of transportation residents expect to have some sort of blockchain integration in the next three years. “Blockchain can be used to store different forms of data such as weather information, Global Positioning System (GPS) and accelerometer surveillance, accident records, crew information, inspection and certification results, mileage totals, among others,” Vikram R Singh, founder and CEO, Antier, a blockchain development and consultancy company, told FE Digital Currency, adding that blockchain can provide solutions to real-time order tracking and verification to increase demand for same-day and one-hour delivery services.
According to experts, through blockchain’s decentralised ledger technology (DLT) protocol, which is a digital system to record transaction of assets, transportation businesses can remove the dependence on extreme paperwork. It is believed that the presence of a decentralised digital database removes the need for a centralised authority to keep track of data manipulation. “Influence of smart contracts can allow for faster approval of transactions in customs, to reduce the procession time of goods and services. Inspections of truck fleets, routes, traffic problems, and associated operations can be aided by blockchain solutions. It has the potential to increase security, transparency, and reduces the possibility of fraud,” Sakina Arsiwala, co-founder, Taki, a token-powered social network, said.
Moreover, various reports have stated that a blockchain-enabled transportation system has the ability to be smart, cost-effective, universally standard, and profitable in context of the present scenario. Market behaviour has shown that smart contracts can make monetary savings for infrastructural and maintenance expenses to transport authorities, as they eliminate the need for third-party processors. According to Vineet Budki, managing partner and CEO, Cypher Capital, a blockchain-based venture capital firm, blockchain can track end-to-end movement of goods through reduction in clerical errors and blind spots. “Blockchain has the capability to shift economies for last-mile deliveries to eliminate middlemen, and create opportunities for small-scale businesses. Smart contracts can help improve transparency among counterparties,” he added. However, despite several studies on the positive impact of blockchain, it is yet to be implemented in the transportation sector.