block·chain
ˈbläkˌCHān/
noun
- a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
- "we can actually have a look at the blockchain and see evidence of what's going on"
Blockchain technology became a big deal this year. You’ve probably been hearing a lot about it lately. It provides the technological means to verify and trade nearly any kind of asset between parties within an online network. To catch up on your reading, here are resources to help you fully understand the concept.
For a summary of how blockchain works in transportation, based on 2017 Hortonworks Data Visionary Award Winner Tim Leonard’s work, read:
Definitions for commonly used blockchain-related terms, can be found here:
For more information on the newly formed standards organization, go to:
Now that the concept and language of blockchain in transportation are slowly but fully being understood and you're able to connect via your TMS platform, what are the “real world” benefits of automating smart contracts?
Both carriers and shippers will have access to the largest amount of data available in the industry. Blockchain can facilitate the successful completion of transactions for companies of all sizes, an action particularly compelling when it comes to receiving timely payments. The escrow-like element of Blockchain takes receipt of payment down from an average of 21 days to seven days. Transparency will rule; arguments related to load status will become obsolete.
Projected business applications for Blockchain in transportation are far-reaching and tightly aligned with day-to-day operations. TMW is leading the way with innovation surrounding bid RFPs and awards; maintenance; as well as EDI transactions with 214 and 204 flat files.
Benefits to Carriers and Shippers
- Trust and enhanced relationships
- Security and governance
- Accountability
- Transparency
- Circle of service
- Stewardship
TMW Executive Vice President of Technology Tim Leonard notes that customers taking advantage of Blockchain technology could potentially realize collective savings between $400-$600 million per year.
Leonard emphasizes companies must be mindful of protecting sensitive information in their Blockchain and notes that businesses with global interests will need to learn how to integrate the private environment.
If you’re ready to see how smart contracts will work, how fast payments can happen and what all of this means to the shipper/carrier relationship, join TMW’s Tim Leonard in December for the live webinar, "The Transportation Blockchain - Solutions You Can Implement Today.”
Or contact TMW to get started today.
