Despite the revolutionary advancement and technology, the shipping industry has remained traditional and conventional in almost all fields. For example, the shipping industry still involves tons of paper for carrying out shipping transactions, sales contracts, port documents, charter party agreements, and other documents associated with the vessel and the cargo. All these documents go through all the involved parties who play an essential role in the shipment procedure hence taking a lot of time and effort. To simplify the physical validation of documents, the shipping industry is getting inclined towards the blockchain payment systems inspired by the Bitcoin payment system. Blockchain container shipping is an organized distributed ledger Technology In which the transactional networks are a sequence of blocks. These blocks are coded digitally and stored in a sequential manner with unique and specific numbers.
Information stored in each blockchain block cannot be changed or deleted, which ensures utmost privacy and security. This also eliminates the intervention of anyone in the blockchain without the prior permissions of the associated parties. Therefore blockchain carries out trustworthy financial transactions between the parties without the requirement of numerous intermediaries such as financial institutions. Blockchain in shipping has promoted paperless transactions to exchange payment security between different parties.
Below listed are the advantages of introducing blockchain container shipping in the shipping industry:
1. Increased Speed And Reduced Costs
Handling the paperwork and documentation manually can be a hectic task and require a lot of time and effort. Therefore, blockchain technology allows the shipping industry to bring automation in performing documentation, transactions, or triggering other actions. Digitization has allowed the concerned parties in the shipping industry to minimize the cost associated with the paperwork and documentation and accelerated these processes to a greater level. Therefore, blockchain container shipping is a cost-effective mechanism that saves a lot of bucks and takes smart contractual decisions on your behalf automatically. That is why the technology has eliminated all human-made errors and the role of intermediaries, thus improving operational efficiency.
The distributed ledger technology used in the blockchain allows every associated party to access their information, which is secured through cryptographic codes. Additionally, the identities of the users are secured through Crypto programs, and they are the rights to permission-based sharing. Thus, the sensitive customer data in blockchain container shipping is entirely secure.
The cryptographically secured blockchain-based tracking system is extremely accurate and can be accessed by all the parties associated with the shipment process. The technology allows you to have access to the Secure data in real-time and view the whole progress of the shipment and make amendments if any.
Since all the customer’s records and sensitive data are encrypted individually through cryptographic algorithms, all the shipment-related information is completely secure and protected. Validated records in a blockchain cannot be reversed or changed, eliminating any missing documents or chances of fraud.
THE BOTTOM LINE
Introducing the blockchain payment system in the shipping industry through blockchain container shipping has revolutionized the financial markets. The decentralized open-source software that carries out blockchain payments manages all the transactions within a network where the transactional information is cryptographically secured.