How dApps Can Benefit The Transport Industry
Every industry can benefit from saving time and money. Competition is high in all sectors that streamlining of operations can only bring profits. Among the areas, transportation is probably one sector that needs a lot of modernization. It is a sector that still depends a lot on paper documents and time-consuming procedures. Another problem that plagues the transport industry is the delay in the receipt of payments. There are also disputes that result in non-payment. There is a need for a transparent and open network that will help the industry solve these problems. dApps which use blockchain technology could be the best solution to the issues.
1. Problems Faced By Transport Industry The transport industry is facing challenges. All these problems relate to delays in procedures or payments. Even the payment delays occur due to disputes regarding payment terms. Using modern technology in the proceedings can solve the issues. One of the fundamental problems with the transportation industry is the lack of transparent communication. When goods travel from one point to another, there are many agencies involved. It may go through different types of transports.
These different parties don’t know each other. Communication is not the same across the whole network. One person is not aware of what transpires between two other people in the same system. They all handle the same consignment. It is where the problem happens. The transport industry processes a lot of documents. Estimates show that around 20% of the cost of transportation goes for administrative and other procedures. The significant portion of the amount comes from the paper transactions. There is an urgent need to device a paperless method. Pharmaceutical products are the worst sufferers. Many of them require transporting at a certain specific temperature. The delays due to procedures may result in variations in temperatures. It makes 8.5% of the sensitive medicines change temperature. They don’t make it past the customs. One major issue which most of the persons involved don't know is the condition of the roads or the vehicle when goods got transported. If drivers were able to give real-time information on these, it would solve a lot of disputes with regards to delay or accidents.
There are regular disputes about payment in the transport industry. There is no transparent communication. Most agencies who are involved in the transport don’t know each other. The different elements don't communicate with each other directly though they handle the same consignment. About 20% of transportation costs go for administrative and other procedures. Hard copies in paper contribute to the expense in a big way. Temperature sensitive pharmaceutical products suffer procedural delay. 8.5% medicines don’t pass customs. Drivers are unable to provide real-time information on road or vehicle conditions.
2. Blockchain To The Rescue Of Transportation Industry Like in most sectors, here too technology can prove to be the solution. Transporting companies have been looking at using blockchain technology for solving the problems. This technology can help in creating transparent transactions among the entities involved in a deal.
Blockchain helps to solve the significant problem. It can create a network for all the connected parties. They can upload their records to this network. It will be accessible to all. There is no control by centralized force in this system. It means each entry is on mutual consent by all the parties involved. There is complete transparency. Blockchain technology will allow each of the user to enter the data on the chain. It makes it fully visible to all the members of the group. In a blockchain, you can register or modify the data only with the consent of the group members. It ensures that members enter only accurate data. Before we look at ways blockchain can revolutionize the transport industry we need to see what blockchain and dApp are. Blockchain Is Revolutionizing The Digital World.
3. Blockchain And Different Types Blockchain can be explained merely as an extensive network. Each block is added to the system as more transactions happen. When each block is attached the existing members of the group extend their consent. Without this consent, you can't add a new transaction. It means that every transaction is fully authenticated and genuine. The main advantage of blockchain is the lack of a central controlling agency. It saves a lot of time. The other members of the group already authenticate every transaction. It avoids the need for a centralized agency to approve the transactions. The data gets stored in all the servers of the members. There is no central data storage where hackers can attack. It will avoid the loss of data. As there is no authority, everyone in the chain has access to the data. There are three types of blockchains. These are public blockchains, permissioned blockchains, and private blockchains. Public blockchains are those where anyone can enter a transaction. There is no need for any approval from a central authority to join the group. Bitcoin is a famous example of a public blockchain.
The second type is permissioned blockchain. Here the members in the chain must be approved before they can read or write contents in the chain. In future legal documents like non-disclosure agreements can be made using such blockchains. A private blockchain is the third variety of blockchain. It is the most restrictive kind of blockchain. Here the members must be authorized by a central authority. Only after the authorization can they join and write on the chain. It is thought to be the most scalable blockchain.
Blockchains are an extensive open network of transactions For every transaction, a new block gets added with the consent of others. Every transaction is genuine as it needs to be authenticated by the other members. There are no controlling authorities to the blockchain, which saves time for approval of each transaction. Everyone has access to the entries in the chain. There is no central data storage for hackers to target. There are three types of blockchains – public, permissioned, and private.
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