6 Ways Blockchain Is Affecting the Transportation Industry

6 Ways Blockchain Is Affecting the Transportation Industry

There’s a lot of hype around blockchain, and it’s easy to understand why. It has the potential to change everything, from how we save for retirement to how we buy groceries. But in this post, we’re going to focus on blockchain’s impact on the transportation industry.

Most people are just concerned with how to buy SOL, Bitcoin, Ripple, or other cryptos. But blockchain is more than just cryptocurrency—it represents a new way of doing business that could transform the way people move goods from one place to another. Here are six ways blockchain is changing transportation

Make Transportation Safer

Is it possible for blockchain to reduce accidents or malfunctions?

A number of thinkers are developing strategies for transportation companies to use blockchain as a way to implement safety. It can be used as a way to track which companies (or sections thereof) have contributed to accidents and malfunctions. 

For example, if a malfunction occurs on the airplane you’re about to board, blockchain could allow the airline company, with your permission, to inform you of any changes in their supply chain partners that may have contributed to that specific malfunction. Blockchain could also help keep transportation companies accountable for their safety practices by allowing them to provide documentation easily that they are following all required safety regulations.

Reduce Risks

Even though travel is often a fun experience, it comes with a certain level of risk. Due to the variety of vehicles used in transportation and the high speeds that they travel at, injuries are unfortunately common—and blockchain technology can help solve this problem.

Tracking responsibility for accidents and malfunctions: For example, if you were injured on an airplane due to a malfunctioning part or because some crucial safety procedure was overlooked, wouldn’t it be nice for you to know who was responsible? I certainly think so. Blockchain can provide that kind of tracking ability. By having every supply chain transaction and maintenance record recorded on a blockchain network, companies will be able to quickly determine exactly how their aircraft became damaged—and whether or not someone failed in his duty along the way.

Ensuring compliance with safety regulations: When vehicles arrive for maintenance and repairs, their maintenance records usually need to be inspected by an official agency before they’re allowed back on the road; however, these inspections are often inefficiently tracked by paper documentation systems or un-blockchained digital systems (in other words: databases). 

If these records were logged using blockchain technology instead, then every vehicle’s history could be verified against global standards such as those set forth by the International Air Transport Association (IATA), which sets industry standards related to flight safety. 

The result? Easier inspections would allow vehicle manufacturers more time to focus on producing safe vehicles that meet international requirements—which means safer roads and skies for everyone!

Reduce Costs

While new technologies can be exciting, they’re not always cheap to implement. Companies have to upgrade their hardware and software, train employees on how to use the new system, and so on. But what if there was a way for companies to reduce their costs while implementing new technology? With blockchain, this is possible. 

Blockchain is designed in such a way as to reduce the need for middlemen and manual intervention. When combined with smart contracts (more on these later), blockchain can help improve supply chain efficiency by automating processes that are currently handled manually through third parties. 

More Efficient

The increased efficiency afforded by blockchain technology can help shipping companies move cargo faster. International freight and logistics companies are piloting blockchain solutions aimed at helping them reduce congestion, in turn reducing shipping times. One of the reasons shipments get delayed is because there’s too much paperwork involved and not enough detailed information available to everyone who has a stake in the shipping process.

Blockchain-based systems are also being used to reduce the time long-haul trucks spend waiting in line at border crossings, which can take hours or even days. This kind of solution will also provide a more transparent way of tracking goods as they move through global supply chains.

Provide Security for Transportation Networks

What’s more, blockchain can help protect transportation networks from data theft and fraud.

As an example, consider the way that transit companies use RFID to track ridership. It’s a great system for keeping passengers accountable and making sure you get paid for each ride, but it also has its weaknesses. Hackers have taken advantage of RFID-based networks by grabbing card data on buses and trains for identity theft (much like credit card skimmers) or even manipulating the systems to give free rides (as was recently discovered in New York). 

Blockchain can prevent these problems in two ways: one is by simply adding encryption to secure your network against cybercriminals, while the other is by creating a tamper-proof database where every record is linked to a previous one so that any manipulation will be immediately detected.

With this ability to secure all communications over transportation networks, it’s not hard to see how blockchain could also be used by governments as part of their security efforts—or even as something that they regulate within their borders.

Boost Efficiency and Lower Costs

Blockchain technology is also poised to reduce the need for middlemen and banks, which will contribute to lower costs for shippers. It can also improve efficiency. A blockchain-based system allows companies to track assets as they move through their supply chain, so delays can be detected and fixed faster than ever before.

Improve Vehicle Safety and Consumer Privacy

You might have heard about how blockchain technology can be used to protect data and privacy, but you may not know yet how this applies to the transportation industry. However, it’s a good thing to understand because blockchain can improve vehicle safety for drivers and passengers. Here are two ways that this is true:

Blockchain Can Help Vehicles Communicate with Each Other

Blockchain technology makes it possible for connected vehicles (also known as vehicle-to-vehicle, or V2V) to communicate with each other via wireless systems. Because of the nature of blockchain, only authorized vehicles will be able to share information, which means that vehicle owners and passengers can rest easy knowing their information is kept private. 

On top of that, these types of communications could potentially decrease road accidents by allowing vehicles to warn each other about upcoming dangers such as icy roads or traffic jams.

Blockchain Can Be Used in Connected Car Systems

Another way that blockchain is already improving safety in the transportation industry is through connected car systems such as Ford’s SYNC®3 infotainment system. This system allows both Ford dealerships and auto manufacturers like Ford Motor Company to quickly identify potential safety issues with connected cars before they become big problems. 

And because data related to driving habits and history is stored on a distributed ledger rather than a centralized database, consumers are free from the worry of having personal information stolen by hackers who might wish to sell it or use it for some other nefarious purpose.

Blockchain is a peer-to-peer system that enables people to store data across multiple devices in a secure, private, and immutable way. The technology’s transparent nature makes it even more appealing because information can be accessed by all parties involved.

This technology is most renowned for its use in cryptocurrencies like Bitcoin and Ethereum, but blockchain has many other use cases. Its ability to increase efficiency, transparency and security makes it the perfect basis for logistics management systems.

The combination of public and private keys allows users to control who has access to their data. This way, only relevant stakeholders are granted permission to see specific data through blockchain-based contracts known as smart contracts.

Author: Full Editorial