Blockchain technology is becoming one of the most cutting-edge innovations in numerous sectors, among them, in port management and logistics. But how can a technology traditionally related to cryptocurrency help ports? The truth is that, although it may not seem obvious at first glance, blockchain offers significant benefits that can dramatically change the way ports operate. For this reason, it has become one of the key areas of interest at La Lonja de la Innovación. We’ll explain how this technology helps ports in this post. Don’t miss it!
What is blockchain?
Before seeing how it can help ports, it is important to understand what blockchain is, because you may have heard about this term many times, but understanding its meaning can be difficult. Blockchain is a decentralized database which records transactions on a P2P (peer-to-peer) network in a secure and transparent way. In it, each transaction is grouped into a block and linked to the previous block chain, in this way, an immutable record is created.
Said in a more simple way, blockchain is like having a ledger or diary where you record all your company’s transactions and information, and once you have written something in it, you can’t change or erase it. In addition, because it is decentralized, that is, it is shared with many others, if anyone tries to tamper with or change something, the rest of the users would detect it, enhancing security and protection. Not only this but also, to be able to add something new in it, everyone must verify that the information is valid and correct.
Some key characteristics of blockchain are:
- Immutability. As we have already said, each register can’t be modified or erased once it has been introduced in the chain.
- Decentralization. There are many participants in the blockchain.
- Transparency. You can consult all the transactions made.
- Trust. The decentralized nature of blockchain guarantees that the data is not changed. In addition, its immutability builds confidence that no false information is received.
- Security. It is impossible to modify or delete data once it is added to the blockchain, which protects against fake information and hacks.
Blockchain in port logistics
Now lets see how blockchain can help in ports. Port logistics has a supply chain with numerous actores: exporters, intermodal operators, port terminals, maritime carriers, banks, administrative authorities, and other intermediaries like inspectors, appraisers, customs, etc. this extensive supply chain highlights its complexity. In this context, blockchain can transform how it functions and enhance its efficiency.
In fact, with the objective of making this process more efficient and effective, more companies are adopting this technology, as it not only aids in internal port processes but also improves cooperation and collaboration among all supply chain participants. Here are some of its applications:
- It allows tracking the movement of assets throughout the entire supply chain, providing real-time visibility and greater traceability. Thanks to this technology, what before was upgraded and controlled through calls or emails is now done directly through this software, increasing trust, saving time for various agents and eliminating potential human errors.
- Digitalization of the Bill of Lading (B/L). Blockchain enables the e-B/L, or digital Bill of Lading, which is a mandatory document in these transactions that proves the transport contract between the shipper and the carrier. This digitalization is a significant advantage, as it reduces paperwork wait times, conserves resources, increases trust and lowers costs.
- Beyond storing transactions, blockchain can also store other documents always present in port logistics, such as technical data sheets of goods and transports, quality analyses, certificates, photographic inspection records, etc.
In summary, this disruptive technology brings numerous benefits, which can be summarized as process optimization—allowing real-time data traceability, eliminating unnecessary intermediaries; enhanced security—thanks to the cryptography used in blockchain, making it nearly impossible to manipulate information, thereby increasing cybersecurity in ports; and improved management through the digitalization and storage of documents, simplifying administrative processes.