It is not a secret anymore that pandemic has left the entire world in economic troubles. Looking at the bright side, it created new room for modern entrepreneurs by putting eCommerce at the forefront of retail. However, due to the substantial spike in competition, there is a high risk of eCommerce websites being exposed to cyber attacks, especially in supply chain and order management. That’s where the significance of blockchain in container shipping enters into play.
Known as the top-rated peer-to-peer network, it being-in secure transactions. In other words, the blend of blockchain technology into the shipping industry is a step towards creating confident customer and retailer relationships.
What Is Blockchain Technology?
Blockchain technology isn’t the latest development but is a buzzword in 2021 due to its ability to fight corruption in the cyber world. To be precise, blockchain is the distributed ledger technology that makes it strenuous for an unauthorised person to access, change, or hack confidential information.
Being distributed over a network of computer systems on blockchain, the technology helps every party in the shipment access the information with secured privacy.
Benefits Of Blockchain In Shipping Industry
Blockchain has been in existence since 2008, but its significance in the shipping industry got a sudden hype after the instances of financial crimes in the cyber world increased. At present, many online business owners make use of blockchain in shipping management. Here’s why!
- Enhanced Privacy
Blockchain is powered by the concept of cryptography. The crypto-programming and permission-based sharing help to secure the information of users. Each customer can access personal information and track the order without any concern regarding privacy issues.
Fact: The first container processed using the innovated blockchain-based CargoX Small Bill of Lading was released in Port of Koper, Slovenia, in 2018.
- Better Communication and Transparency
Not just about privacy, but blockchain also makes the workers’ execution easy in the shipping industry by providing communication and transparency of the system. It stores all the information at a particular location which means suppliers can effectively connect with customers regarding order and payments.
- Quicker And Reliable Transactions
Financial frauds are the biggest threat in the eCommerce field. It is probably why most customers do not prefer digital payment transactions. Nevertheless, the deployment of blockchain in the fulfilment of orders makes the process safer at both ends.
Further, the fact that the transactions in blockchain-based shipping containers take place on single-network results in quicker completion of the payment process. It also eliminates the need for intermediaries letting the suppliers enjoy smoother transactions.
- Cost Saving
Other than terminating the need for intermediaries in the process, blockchain in shipping also cut the cost of documentation, delays, errors, and discrepancies. Therefore, an eCommerce company can enjoy life-time cost-effectiveness with the installation of blockchain.
- Improved Customer Experience
One of the significant aims of the eCommerce business, that is to provide a satisfying customer experience, can be easily accomplished using blockchain in order fulfilment. This is because the technology helps the customers track their order status and let them review the documentation from shippers. By keeping in line with the procedure, customers can have peace of mind regarding the company’s standards.
Shipping is the core element in the field of eCommerce and marks a whopping impact on its progress. Thus, it is dire to maintain secure, private, and effective management of the process from start to finish. Consider opting for the blockchain in container shipping to make it possible and to hit the jackpot in the nearby future.