The blockchain is a model that bets on technology to improve security and agility in the exchange of information. In this article, we will tell you more about what is blockchain and what is its importance in today’s logistics.
The blockchain refers to the set of computers connected to each other, which manage the same protocol and activities. The blockchain is a large database that is stored on a single server and distributed across different computers so that the information it contains is replicated on each of the computers that make up the blockchain.
Its applications in logistics have to do with the use of technology for large financial transactions, smart contracts, and safer transportation of documents. Here are some of the advantages of using blockchain in logistics:
- Fewer intermediaries: thanks to the technology, self-managed communities can be created by users, thus forming smart contracts that streamline negotiations and automate business processes.
- Reliability: The technology allows to have documents and contracts in a secure way, so the blockchain is an excellent way to safeguard important company documents.
- Transparency: As we mentioned before, blockchain makes all equipment connected, this is extremely useful to small and medium-sized companies to communicate with their suppliers and customers the processes they perform with total transparency.
- Cost reduction: The integration of IT systems always involves a considerable investment for companies. However, with the blockchain this integration of systems is much simpler and can be adapted to any company in a better way.
- Traceability: Knowing the status of goods being moved is essential to better track processes. The blockchain offers excellent traceability of the products being transported and helps monitoring the distribution chain better.
- Customer loyalty: Blockchain systems allow companies to offer their customers a variety of payment systems not offered by competitors, plus it can offer reward mechanisms that attract more customers, increase sales and improve loyalty.
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