The Effects of the Applications of Blockchain Technology on the Logistics sector

Abstract

Logistics is a combination of businesses involving various activities and processes which generate value by goods and services. Maintaining track of all transactions is a crucial task in logistics. Logistics 4.0 enables the optimum synchronization of activities inside corporate boundaries; if effective, logistical constraints resulting from industrial sender and receiver channels may be considerably alleviated. Blockchain paves the way for implementation of smart logistics. It served as storage for the transactions after distributed ledger technologies was implemented before the digital cryptocurrency a year ago. It is a decentralized system based on five essential principles: decentralization, P2P, transparency with privacy protection, and algorithmic logic. Some logistics companies are already employing block chain. This paper summarizes adoption of distributed ledger technology in logistics is being investigated. Furthermore, the strengths and weakness of blockchain in logistic industry were extracted from recent scientific literature for readers to overview the application of technology. It is reported that blockchain adoption provides immutability, data security, tracking, storage, dependability, and cost-effective alternatives in logistics industry. However, there are a few obstacles that prevent full-scale adaption by many logistics and transportation sectors, such as throughput, and latency constraints. Nodes aren’t monitored by centralized entity to notify security breach, so data security may be compromised. Furthermore, the blockchain is still in its infancy; there’s no single standard, theories are difficult to grasp, and even the most basic types of application need programmer assistance.Logistics is a combination of businesses involving various activities and processes which generate value by goods and services. Maintaining track of all transactions is a crucial task in logistics. Logistics 4.0 enables the optimum synchronization of activities inside corporate boundaries; if effective, logistical constraints resulting from industrial sender and receiver channels may be considerably alleviated. Blockchain paves the way for implementation of smart logistics. It served as storage for the transactions after distributed ledger technologies was implemented before the digital cryptocurrency a year ago. It is a decentralized system based on five essential principles: decentralization, P2P, transparency with privacy protection, and algorithmic logic. Some logistics companies are already employing block chain. This paper summarizes adoption of distributed ledger technology in logistics is being investigated. Furthermore, the strengths and weakness of blockchain in logistic industry were extracted from recent scientific literature for readers to overview the application of technology. It is reported that blockchain adoption provides immutability, data security, tracking, storage, dependability, and cost-effective alternatives in logistics industry. However, there are a few obstacles that prevent full-scale adaption by many logistics and transportation sectors, such as throughput, and latency constraints. Nodes aren’t monitored by centralized entity to notify security breach, so data security may be compromised. Furthermore, the blockchain is still in its infancy; there’s no single standard, theories are difficult to grasp, and even the most basic types of application need programmer assistance.