A new report by Transport Systems Catapult (TSC) and the University of Sheffield examines how blockchain could revamp the transportation industry through decentralized platforms.
According to a new study by Transport Systems Catapult (TSC), a UK organization, blockchain technology stands to contribute significantly to the modernization of today’s transport systems.
Because it facilitates seamless, decentralized transactions, blockchain could eliminate the need for bulky monolithic processing systems. TSC encourages the exploration of blockchain's uses and benefits in this industry.
A white paper outlining the results of the study explains that, while blockchain technology is still evolving, it has promising applications in a variety of areas, including mobility as a service (MaaS), freight and logistics, and unmanned aircrafts.
Impact on Ride-Hailing Services
TSC details one example of how blockchain technology could improve the MaaS market by enhancing the experience of both drivers and riders who use peer-to-peer ride-sharing services.
Some companies face consumer complaints due to centralized third-party control of ride costs and driver commissions. The paper reports that the use of decentralized technology could provide a system in which drivers could set their own fares and transact directly with consumers.
There may also be applications in which the technology could be used to verify such things as rider and driver identification, completed transportation, and transfers of funds.
Blockchain would allow for such improvements and increase trust among all parties.
Blockchain for the Freight and Logistics Industry
The freight and logistics industry also stands to benefit from blockchain-enabled applications.
With regard to blockchain application for the movement of goods, the reports says,
"The technology could help reduce inefficiency in the system, through removing duplicate effort across different stakeholders in maintaining separate databases and documentation about the same consignment, automating approvals, and removing some intermediaries. A single version of the truth could be established in seconds, rather than hours or days, allowing capacity utilization to be optimized."
In one example, Walmart, IBM, and Tsinghua University collaborated in 2016 to use blockchain to corroborate the supply chain. They found that when tracking the origin of mangoes, blockchain cut down the report time from six days, 18 hours, and 26 minutes, to just 2.2 seconds!
Unmanned Aircraft and Blockchain
One of the most interesting applications the report details is using blockchain for unmanned aircrafts.
The report suggests that, for this market, decentralized systems could solve issues such as illegal drone activities and could insure that flight verification and safety standards are followed.
TSC recommends that the UK take steps to become the leader in blockchain technology by increasing understanding and stimulating the market through research and development.
For the full report, visit “Blockchain Disruption in Transport: Are you decentralised yet?”
On what other industries is blockchain having a significant impact? Learn more in 8 Ways Blockchain Is Changing the World.