The transpiration and logistics industries are currently looking at new ways to use technology to enhance their day-to-day operations. One way they plan to achieve this is by combining Internet of Things (IoT) devices and blockchain technology as a means to maximize efficiency and productivity. Logistics companies can use blockchain to track inventory as it moves across the country, while blockchain can help municipalities with monitoring and regulating traffic patterns.
Traffic lights and vehicles can be added to the IoT, where they send data to the blockchain network in real-time. This information can be used by municipalities and other government agencies to look at ways to temporarily reduce congestion and reduce the flow of traffic. This is especially helpful when improving emergency response times, as government agencies can view accurate traffic data in real-time and use that information when planning detours or cordoning off roads.
Blockchain can also be used to:
- Reduce commute times.
- Track the movement of vehicles in parking lots.
- Record repair, maintenance, and emissions information.
- Pay traffic fines.
What Does This Mean?
Integrating blockchain into transportation will revolutionize the way government agencies and private companies access the travel industry. Because blockchain has a distributed ledger that’s updated in real-time, there’s less likelihood that companies will make mistakes in their records. This, in turn, helps companies transport goods more efficiently, effectively reducing the cost of shipping.
On the same token, government agencies can access data and implement changes more efficiently with blockchain technology. This, in turn, lowers administration costs and time, ensuring that government initiatives meet their deadlines and stay within budget.
What’s more, blockchain and IoT technology can ensure there’s less wastage in logistics. This is done by installing hardware that tracks internal temperatures of trucks, regulating climate control when the temperature reaches a dangerous level. Successfully protecting the cargo from spoilage and damage as a result.
When Can We Expect to See Blockchain in the Transportation Industry?
According to Morgan Stanley, it could take $500 billion to equip the transportation industry with blockchain technology—and a significant amount of time.
Still, there are a number of projects currently exploring blockchain technology and how it can be used in transportation. The Blockchain in Transportation Alliance (BiTA) is currently working on a universal blockchain protocol for transportation and logistics companies. The development of this would ensure that private shipping companies and government agencies are all capable of sharing data across a singular platform.
IBM and Maersk have also expressed interest in using blockchain for shipping purposes. They even performed an experiment where they used blockchain and IoT to track a shipment of flowers from Kenya to the Netherlands.
But where does this leave us currently?
Between automated cars and blockchain-driven technology, the future of transportation looks exciting. With that said, it’s not likely that these changes will happen all at once.
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