VOL 27: Blockchain For TRANSPORTATION
Hey Friends,
Trust you all had a great week?
This is the 7th post in a blog series on Blockchain Transforming Africa. So for today, I will be explaining how this technology can transform our TRANSPORTATION SECTOR.
If you’ve been following this series, you should be aware of how this technology can be applied in numerous sectors. This is largely because it has the potential to dramatically change the way in which information or data is stored and used, enhancing transparency and security, while also improving transactions. WEF has predicted that 10% of the world's global GDP will be stored on the blockchain.
I’ve worked in this sector, so is more of an experienced problem for me. Let’s take a more detailed look at the various ways in which blockchain is being used, or is likely to be used, within the transportation industry.
Supply Chain
In Lagos, Nigeria, moving goods from Point A to Point B is a very rough process, which has become a major problem to wholesalers across the state even the country, it’s all too broken. The big question to this problem has always been how do you move a product trustlessly from Point A to Point B?
The traditional process of maintaining supply chain records by FMCG companies (Fast-Moving Consumer Goods) is cumbersome and is prone to forgery and other illicit activities. Such an important piece of documentation could be stored on the blockchain, which can create an immutable record of ownership, transfer and value.
Blockchain is already used to encode verifiable information about a product origin, the technology could give greater confidence to consumers and intermediaries and be sure that what they are getting was not produced or altered en route to delivery and that it passed through an accountable supply chain management system that can pinpoint the pathway of the goods from point of origin to destination.
For example, A South-African mining conglomerate named De Beers has recently launched an app named Tracr built with Blockchain. The app is used to successfully track their diamonds along its supply chain, marking the first time a diamond’s journey has been digitally tracked from mine to retail.
If faithfully employed this technology will strengthen businesses because of its efficiency, better security in keeping records and safety.
Smart Contracts: Reduce Costs And Eliminate Middlemen
When a shipment travels from point A to point B, it involves a shipper, a carrier, and several intermediaries, resulting in a more corrupt process of transporting goods. But what if those intermediaries or middlemen become irrelevant and obsolete in the future?
Smart Contracts may be the most significant blockchain-enabled feature for the freight industry. They are essentially self-executing tasks that are coded in the blockchain and executed only when a specific condition is met.
The current paper-based supply chain systems are extremely inefficient. When documents have to pass through multiple parties, the likelihood of errors, loss, and fraud increases significantly.
Smart contracts could use blockchain to eliminate the need for all of these administrative steps, lowering costs and virtually eliminating the possibility of error.
Future Vehicles
According to a recent study by IBM Institute for Business Value, the use of personal automobiles as the primary mode of transportation will decline by 5% over the next 10 years.
Most cars have a limited amount of usable time, but with new options for vehicle access, people no longer have to pay in advance for a car that will most likely be parked for the majority of the day. Drivers and passengers can instead pay for access through a mobility service such as Waymo, Cruise, Argo AI etc. which are providing an autonomous ride-hailing service.
In order for autonomous cars to enter the mainstream, they must continue to improve their ability to collect and communicate data from their surrounding environment. An advantageous benefit blockchain brings to the table is the ability to spread data more efficiently and rapidly. Driverless cars must constantly be aware of a few key factors: the conditions on the road, their own condition, and the status of other cars.
Traditional IoT makes this process complex because of its communication protocols. Blockchain’s decentralized ledger means that each node in the network, in this case, each car and data point—has access to all data almost simultaneously, and more accurately.
Conclusion
Blockchain will disrupt and create new possibilities for the transportation sector. According to Morgan Stanley (an American multinational investment bank and financial services company), “The revenue opportunity for blockchain within the freight and transportation space could end up being as much as $500 billion.”
Everything is going to be digitized and Blockchain technology has enormous potential in the transportation and logistics industries. Before blockchain can become ubiquitous, it must first mature. At the same time, businesses must begin thinking about and planning their Blockchain strategy right away.
Let me end it with this quote from Africa’s Agenda 2063;
“Africa shall be a strong, united, resilient, peaceful and influential global player and partner with a significant role in world affairs. We affirm the importance of African unity and solidarity in the face of continued external interference including, attempts to divide the continent and undue pressures and sanctions on some countries.”
This man here is
Robert Owen
, (1771-1858) he was an early industrialist. He is perhaps best known for his model textile factory and village at New Lanark in Scotland and the pioneer of the first nursery school system.
Founder of Utopian Socialism, a movement that started during the industrial revolution. Utopian Socialism is a theory which advocates for the moral suppression of capitalists and to ensure wealth would be equally distributed amongst the people.
More from MAP's Newsletter:
How Blockchain Can Transform Africa's Financial Sector.
How Blockchain Can Transform Africa's Educational Sector.
How Blockchain Will Transform Africa's Mining Sector.
How Blockchain Will Transform Africa's Agricultural Sector.
How Blockchain Will Transform Africa's Health Sector.
I hope you enjoyed learning.
Enjoy your weekend.