According to a survey conducted by Forbes, 65% of the executives focussed on transportation believe that the logistics industry will experience a tectonic shift from traditional methods to better technologies. Well, those days are not far when blockchain technology will revamp the entire supply chain and transportation industries. One may usually relate blockchain with Bitcoin or other cryptocurrencies. But, there is more to the technologies affiliated to the blockchain and this includes Ethereum Smart Contracts. So, how will smart contracts be a boon for the logistics industry? Let us take a look.
Smart contracts are highly efficient in performance and adept at quickening and simplifying the functions and processes of the logistics industry. Moreover, implementing them in the supply chain industry will give a clear picture of how they are beneficial for this field.
Transparency and Clarity Of Agreement Terms
As it is based on blockchain, the code of smart contracts is transparent. Everything ranging from the terms and conditions to obligations is coded in such a way that all the parties on the network can view the transactions without any confusion or discrepancy whatsoever.
Trustworthiness and Reliability
Smart contracts are inherently immutable. This makes them reliable as nobody across the whole supply chain can alter the terms of the contract. Even if some of the members leave the network, there is no threat of a data leak and it will continue to function with the same efficiency.
Protection against frauds and Guarantee of payments
The most important advantage of blockchain is decentralization. That is why no single individual can control the blockchain or smart contract. Also, nobody can release any data or funds without the prior consent of the members on the blockchain. If anyone tries to attempt such an act, they will be noticed and blacklisted. Besides, logistics companies are assured to get paid if they have provided services to their clients proficiently.
Elimination Of Third Party Intermediaries
Traditional supply chains are filled with middlemen and third-party intermediaries. Smart contracts will help in getting rid of them and eventually reduce the unwanted costs across the chain. With smart contracts, freight operators, shippers etc. will be able to deal with one another directly. This will, in turn, make the whole process smoother and faster.
Smart contracts have the immense potential to revolutionize the logistics industry. But, you must make sure to tie up with the best companies to get the best blockchain services. Blockchain App Factory is a leading company with much experience in Blockchain smart contract development. Keep your woes away and get in touch with us to enjoy our readymade solutions.