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Will Blockchain simplify the freight and semi-truck industry?

Blockchain. Nearly everyone has heard of the word in some form or another. But, what is it? Is it a passing technological phenomenon? No, blockchain is a distributed, electronic ledgerwhich tracks financial transactions in a highly secure manner. The CEO of TransRisk, Craig Fuller, recently quoted a Deloitte, claiming that blockchain technology will make up a tenth of the world's economy in the next eight years.

Fuller is the co-founder of the Blockchain in Trucking Alliance (BiTA). The goal of the two month old organization is to implement the new financial tracking technology into the trucking industry. BiTA has 150 members.

A recent conference held by BiTA featured the chief strategy officer from Fleet Complete as a speaker who espoused the benefits of moving to the technology, "blockchain technology will ensure better asset utilization." Some of the other benefits of blockchain transactions include:

  • Increased pricing transparency
  • Lower compliance costs
  • Quicker transaction and claims settlements
  • More accurate volume forecasts

Currently, blockchain faces a few challenges before being widely accepted within the industry. Large institutional changes would have to be made to accommodate cryptocurrency transactions. Furthermore,  a large majority of individuals outside of financial technology still are unaware of the benefits of blockchain transactions.

However, Fuller believes blockchain will overcome these hurdles, "Every single day there is $140 billion tied up in disputes for payments," he explained. "The shippers end up saying, 'You didn't send me a proper bill.'" Blockchain would immediately make resolving disputes simpler than the current process due each transaction being permanently saved. Forecasts have placed that blockchain technology will be start to be utilized in the next two to five years.

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