Blockchain technology is no longer strange to many businesses, especially those in the transportation industry. But for some people, blockchain technology is still something new and strange, and many businesses are a bit skeptical about the practicality and data security that the software brings.
That makes many businesses ask questions about whether blockchain technology should be applied or not? So let’s learn with TNK about blockchain technology and its application to freight transportation.
Blockchain Technology and How It Works
Blockchain technology can be understood as a chain-block technology system that allows the transmission of highly encrypted information, similar to a bank’s accounting books, where assets are closely monitored elsewhere. and record every transaction on the peer-to-peer network.
Each block in blockchain technology contains a specific amount of information, usually data about time and transactions. Each block links to the previous one and the blocks before it, forming an immutable chain.
Blockchain technology’s data recording process begins when there is a new transaction. This transaction is encrypted into a digital signature code, which represents the content of that block. The new block is then linked to the previous block through a digital signature code, creating an immutable chain that custodians can audit.
Supply Chain Management In Blockchain Technology
As mentioned earlier, Blockchain technology can ensure comprehensive transparency in supply chain management of the freight transport industry and related industries such as petroleum software development, vehicle management software, and sales. retail goods.
Record data and authenticate origin
Each step in the supply chain is recorded in a block of the blockchain. Information on origin, production, storage and transportation processes are clearly illustrated, from factory to user.
Blockchain technology also helps ensure product provenance by clearly documenting every step of the production process. Blockchain technology also incorporates quality information from third parties to ensure transparency and trust.
In addition, blockchain technology also adopts digital signature codes, making all transportation and storage of products recorded and verified in the supply chain. Blockchain technology also helps prevent loss, counterfeiting and ensures products are in the best condition.
Enhance transparency and smart management
For retail businesses, customers can track the origin and history of the product, enhancing customer trust, as well as increasing the reputation of the business.
Blockchain technology also supports smart contract management, helping to automate payment and transaction processes, reduce risk and increase transparency.
Authenticate Origin and Quality with Blockchain Technology
Blockchain technology plays an important role in authenticating the origin and quality of products in the supply chain. Every step of the manufacturing, packaging, shipping and storage process is recorded in blocks of blockchain technology. What makes blockchain special is that this information cannot be changed, creating a clear and transparent history of the product.
Digital signature code and product origin
A digital signature code is a string of numbers and characters created from digital data using a special algorithm. With each block in blockchain technology there is a unique digital signature code associated with the content. More specifically, if there is any change in the data, the digital signature code will also change.
This helps prevent tampering and ensures that data on the blockchain cannot be changed without detection.
Blockchain also tracks the detailed origin of each product component from sourcing to assembly. This helps prevent counterfeit goods from entering the supply chain.
Check information and manage contracts
Blockchain technology supports quality-related smart contract management. Quality provisions can be set to automatically perform, control and document legal work based on the terms of the contract or agreement.
In addition, smart contracts can also automate processes, stimulating further actions if conditions are met.
With many features, smart contracts are often used by many businesses in fields such as real estate, finance, education, transportation software,…
Financial Management and Payment Using Blockchain Technology
For large or small businesses in the market, financial management and safe, transparent payments are important for every business. Good financial management can lead to strong growth of the company, when expenditures bring exactly the results the business wants.
In addition, combining blockchain technology and smart contracts will open up significant opportunities to optimize performance in processes related to corporate finance.
Limit transaction risks
Blockchain technology reduces complexity and costs in the process of transferring money domestically and internationally. By using encryption and a decentralized transaction process, the technology eliminates unnecessary elements such as the use of multiple banks and intermediaries, reducing risk and speeding up the money transfer process.
With the decentralized nature and authentication capabilities of blockchain, risks in the transaction process are significantly reduced, as data on blockchain technology cannot be changed once it has been confirmed or created. a safe and trustworthy environment.
New prospects in businesses using blockchain technology
Secure payment and financial management via blockchain not only enhances transparency and reliability, but also creates an efficient, secure and cost-effective business environment. This also helps open up new prospects in building a more secure and transparent financial system for businesses.
Applying blockchain technology to the transportation industry
With many of the above advantages, many transportation businesses have also applied blockchain technology in their business plans. That has also somewhat changed the way that business operates.
But one thing is guaranteed, most of the time, applying technology to operations brings great benefits to that business. These include increased work efficiency, easier management, optimized gasoline costs,…
Advantages of blockchain technology in the transportation industry
Blockchain technology also brings many advantages to the transportation industry such as creating a transparent and immutable system, helping all stakeholders in the supply and transportation chain to review every detail easily.
Enhancing logistics performance helps optimize processes by providing accurate information and quick access to all stakeholders. Blockchain technology is strong in enhancing system security, so it helps businesses build trust from customers and increase the reputation of the business.
The future of the transportation industry
Many technology software are being developed today, causing fierce competition in the software market, causing businesses that do not program software that are not strong enough to be automatically eliminated from the market. Only software programming businesses are left that can afford to continue operating.
This brings great benefits to businesses as they now do not need to worry much about security features, as well as the desire to increase performance. Now the blockchain technology system will automatically manage complex systems, helping to minimize errors in the data management process.
Therefore, it is promising that in the future of the transportation industry, the integration of blockchain technology will help increase efficiency and transparency in all aspects of small to large transportation processes.
Conclude
With the information given. Blockchain technology has opened up a wide range of opportunities in the freight industry. Applying blockchain technology not only brings transparency and safety, but also helps optimize processes and reduce costs. The combination of blockchain and the freight industry can shape a more efficient and transparent transportation system.
Solutions & TNK Technology
Address: 137 Luy Ban Bich, Tan Thoi Hoa Ward, Tan Phu District, HCMC
Hotline: 0903 821 698
Email: lienhe@tnk.com.vn
Website: tnk.com.vn
Working in a unit specializing in providing support software for the TNK transportation sector. With a deep understanding of the industry and proficiency in technology, we are committed to providing reliable information and solutions, helping readers feel confident and secure in the process of learning and applying technology. into the transportation sector.
