Like self-driving cars and fully automated homes, the potential of the blockchain is exciting—but implementation can struggle to meet its seamless, utopian pitch. Make no mistake: the blockchain is a huge leap forward in technology, efficiency, and transparency, but introducing new “genetics” to old systems can, much like humans, take a few generations before it truly realizes its potential. Fortunately, technological generations are extremely short in pursuit of new breakthroughs, and blockchain is no exception.
One of the key strengths of blockchain technology is scalability and native integration—SMBs on through to corporations can make it a part of their approach to logistics, whether intrinsically or through partnering with a blockchain-savvy 3PL provider. Without the need to parse the industry-specific technologies currently in play, it can seamlessly move from task to task without the need for reprogramming or “shoehorning.”
Business is conducted by default without blockchain—consider that with technologies as convenient as RFID chips and scanners, some warehouses still operate with paper at integral points. In other words, just because a technology is available doesn’t mean all businesses are obliged to use it.
One of the larger challenges is that many existing leaders don’t understand what blockchain fundamentally is. Others view it as a fad, just waiting it out while others cash out on the hype.
Even those with an interest in exploring it are hesitant to invest time and money into a technology that still lacks industry-wide standards and practices. Investing in blockchain without industry support is risky. In order for blockchain to be successful, everyone needs to “speak the same language.” This emphasizes the importance of organizations like Blockchain in Transportation Alliance (BiTA) working to unite behind a common framework of standards.
It’s also important to note the practical and legal hurdles blockchain will face through development. Companies may need to hire additional programmers as well as educate legal departments about new ways of doing business.
For most, it’s a waiting game—waiting for software, standards, and processes to develop. Thankfully, there are innovation-hungry companies who see the potential blockchain offers to the logistics industry.
Early adopters are forming alliances to lay much of the important groundwork of introducing blockchain to their industry. BiTA, for instance, unites some of the largest shippers, 3PLs, and fleets across the country that see the potential blockchain has in logistics.
BiTA believes “Industry-wide, enthusiastic participation is key to extracting the full potential of benefits that blockchain technology promises.”
By uniting the industry behind a common framework, the hesitation will start to give way to wider adoption and fewer obstacles. Gartner suggests that non-pilot use of the blockchain in logistics will begin trending as early as 2021.
Thought leaders within the blockchain community are also making headway into adoption through education. By making educational and certification resources available through learning centers like Udemy, they're broadening the base of professionals who grasp the benefits of adopting the technology. The most forward-thinking companies are also encouraging employees to stay up-to-date with sources such as FreightWaves for the industry and Coindesk for blockchain news at large. This enables entire teams to get adjusted to the idea of understanding and talking about the blockchain, making them much more efficient adopters when the time comes for company-wide implementation.
Yes, blockchain is new, and to some entrenched business professionals, it’s confusing on the surface. But technology's destiny is ultimately to bridge gaps—language, math, ability, and now transparency. Just like the first companies to embrace "horseless carriages," those that make a point of staying ahead of the movement with education and open-minded consideration will reap the rewards it has to offer. Get started on your own innovation enrichment by downloading our Supply Chain Innovation Technology eBook to discover the innovations that are driving the technological evolution of the logistics industry.