BlockchainBusiness & Finance

Blockchain to Solve Russia’s Supply Chain Woes

Blockchain is proving itself to be a technology that finds its use-cases beyond the world of bitcoin. Just another news of its adoption in a sector beyond cryptos comes in the form of TradeLens platform which is now going to operate in Russia. BlockPublisher reported earlier when the supply chain platform was first announced which has now become a reality.

TradeLens is a blockchain-based platform that aids in international trade. It is built by the tech giant IBM and the shipping giant Maersk, in collaboration. The platform allows for a shared view of shipping transaction data thus helping the container logistic industry participants. The aim of this project is to streamline and make efficient the interaction between the shippers and the regulatory authorities in the country so that faster results and movements are observed.

As stated by Yuriy Tsvetkov, Russian Deputy Transport Minister and Head of Federal Maritime and River Transport Agency, at the signing ceremony of this agreement:

The main result of the implementation of TradeLens, according to our expectations, should be an increase in the transparency of the contracting procedure by distributing information about supply and demand, conditions and operations between many participants of the transport and logistics processes.

As per the agreement that is made with the Russian authorities, the pilot for the project TradeLens will run in St. Petesburg with its ports being integrated with the TradeLens’ global community of companies and organizations leading in the digital container documentation flows.

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The image of blockchain since the inception of bitcoin and cryptocurrencies has not been very positive among people as it is the technology at the core of bitcoin and cryptos, which are often engulfed in controversies and scams. It is usually associated with the aspect of decentralization, which is rebellious in its own sense as most of the systems around us today are centralized.

Blockchain takes control away from the hands of a centralized party and gives it to the nodes maintaining the network. But besides decentralizing control, there are other aspects linked to the blockchain technology that need to shine. They include transparency, trustlessness, immutability, and global nature. These prospects will only get highlighted as blockchain gets more and more adoption.

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Blockchain is a distributed-ledger technology where the record is arranged in the form of blocks. Once a transaction is floated in a blockchain network and is verified, it is put in the record by every node maintaining the network. This introduces a layer of trust in the network where the record is open and is there for everyone to see without the forgery of a centrally controlling party.

Once a transaction is put in a record, it cannot be changed, meaning the record becomes immutable. As a result of such a framework, a trustless and transparent layer of operation is established which accessible to everyone participating in the ecosystem. These are the exact features that help make blockchain a thing of prime importance in the area of logistics.

Supply-chain and logistics departments both get serious advantages from blockchain technology as putting small steps in their workflows on a blockchain makes the record authentic and accessible to everyone participating in the network thus easing the flow and making workflows more efficient. Being digital, all the hectic procedures relating to paper records are automatically taken out of the picture with blockchain.

This step of blockchain being used to facilitate international trade in a country like Russia is a major leap for the technology as it only proves the its worth. Blockchain has already found its use-cases in finance, pharmaceutical industry, content-creation, app creation, supply-chain industry, music industry, live streaming and much more. International trade facilitation just signifies that this technology is not going away any time soon, it is here to stay for good and will most probably play an important role in the industry 4.0 of the future.

READ ALSO: Blockchain Revolution Incoming: Technology Proving Use Cases in Every Industry

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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