With the global shipping and ports industry increasingly turning to digital operations, Blockchain is set to completely change the way shipping operates, according to Rahul Kapoor, Analyst at Bloomberg Intelligence.
Kapoor said: “This [blockchain] would be the biggest innovation in the industry since the containerization.
“It basically brings more transparency and efficiency. The container shipping lines are coming out of their shells and playing catch-up in technology.”
Read more: What is Blockchain? Explained in 5 Simple Answers
Blockchain is an electronic ledger system that allows transactions to be verified autonomously, meaning different players in the supply chain can share data in much more secure ways.
This is seen as the Holy Grail in shipping – an independent, non-bias and private system that can harness data and expedite trade flows.
Different analysts are predicting different figures, although one report recently suggested the global blockchain market would be worth US$425 million by 2023.
The world economic forum believes blockchain will eventually be worth one trillion US dollars.
Many major names are jumping on the blockchain bandwagon at present, such names include the Dubai Government itself which has made it a fundamental part of its strategy.
Other major names in shipping and logistics trialling blockchain include Maersk and Alibaba.
Kapoor also believes that the financial benefits for companies getting involved in blockchain should start to appear in around two years’ time.
With the potential of blockchain being realized, nodes across the supply are being challenged to keep pace with the changing landscape and have modern, efficient and digitalized operations.
As blockchain facilitates paperless trade and warrants autonomous vehicles, the cloud is where ports, terminals and airports will aim to be in the near future.
Read more: Alibaba Utilises Blockchain in Food Tracking Plan
Read More: Maersk & IBM Form Blockchain Venture