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How Blockchain Could Impact the Trucking Industry

What is blockchain technology and how on earth does it apply to the trucking and transportation industry? To start with blockchain has zero to do with big rigs and trailer hookups, even though anything with a chain on it sounds like a good fit. Blockchain technology is actually associated with monetary concepts like Bitcoin and other cryptocurrencies. It's fast becoming a type of technology that is taking over industries around the world, and trucking is right in its path. Learn what exactly blockchain is about and how it could disrupt the trucking industry—and whether or not we should be concerned.

Blockchain in a Nutshell

Blockchain is a type of technology that allows digital information to be passed along but never copied. It serves as the proverbial backbone of digital data. In its earliest stages blockchain was developed for bitcoin users and transactions. Bitcoin is a form of cryptocurrency, which is digital money that can be spent among bitcoin holders and users. 

Bitcoins are most commonly used for internet users who want to make online transactions. It can be used by anyone who accepts bitcoin as payment, which ranges from online gambling sites to internet gaming. It gained popularity and support by the likes of Bill Gates and Al Gore because bitcoin depoliticized money.

Now back to blockchain. Blockchain technology allows bitcoin or any type of digital cash to be passed along to someone else. With blockchain there is a digital trail that follows this digital money. Most importantly, blockchain guarantees that digital cash cannot be copied illegally. This is what gives cryptocurrencies the assured value. Since you aren't going to actually hold a bitcoin in your hand, it's good to know that the bitcoin you use to make purchases with are legit and not forgeries.

Using Blockchain Tech in Trucking

How in the world would blockchain be remotely applicable to the trucking industry? Well, for starters we aren't talking about paying truck drivers in bitcoin. Rather the focus is on blockchain technology tracks and records the transfer of data. This type of technology could allow the trucking industry to transfer everything from bills of lading to invoices and driver information without fear of security breaches.

Blockchain serves as a ledger for recording every transaction and provides identical copies of each transaction to those who have access to the network. The reason it is called blockchain is because these transactions are sorted into groups or blocks of data. Then these blocks of data are recorded one after another, thereby creating a blockchain. Each of these blocks are wholly secured. You cannot destroy or alter any of the blocks, which is where the super security of the blockchain system comes into place.

Truck Driving Data Needs

The trucking industry is increasingly dependent on data, whether you are talking about transmitting data via e-logs or emailing invoice information. You've got trucking apps and software for dispatching that automates the load finding processes. All of these types of trucking technology have made the truck driving industry more efficient. Now you can get your invoice and paperwork in a few seconds, rather than waiting for snail mail to access load information. You can text message your dispatcher and get a Google map-generated route for your next load.

At the same time, all of this technology creates a ton of data, day after day, trucker by trucker, load by load. What if hackers, competitors, or some other entity changed vital information within this data? Over a large scale it could dramatically disrupt the trucking information, and with it the American economy, as well as the global marketplace. Perhaps even more concerning, a lack of security for this digital data would create mistrust in the trucking industry. This is the last thing we want to see happen, in an industry that is on the cusp of becoming more high tech than ever in history.

This is where blockchain technology could serve a mighty purpose. By protecting trucking data at every link of the supply chain, the industry regains security along with consumer confidence. Blockchain technology is an open source technology that uses computer code and digitized algorithms, so there isn't any worry of someone taking control as the blockchain powerhouse. Albeit there is the likelihood that transaction fees within the blockchain are right around the corner. At the same time, being able to store, organize, and access digital data is instrumental in the growth of the trucking industry.

Using the blockchain network would give the trucking industry as a whole the ability to access big data for doing everything from research to making regulatory decisions. Best of all, this big data is easily congregated, which makes doing research and data analysis super quick. This is also thanks to computing technology that gets more efficient every year. 

By using blockchain technology, the trucking industry can make smarter decisions based on user data, while also protecting everyone from truck drivers to shipping customers. Blockchain is in a position to give trucking the boom it needs in order to keep up with the growing demand of truck driving jobs and hauls.