As big companies have started to notice more and more lately, that blockchain really is a disruptive force that will bring changes into many areas in how things are done in the world, the transportation and logistics giant FedEx has finaly entered the space.
The big event that has taken place in New York City – the Consensus Conference, had attracted many well known figures from different kinds of fields, like finance, politics, blockchain and crypto. The FedEx founder and CEO Fred Smith has been present expressing his views of the distributed ledger technologies as a tools that will greatly help his company in keeping up with the pace by which the world is moving forward by in the moment and in the future ofcourse.
“If you are not operating at the edge of new technologies, you will surely be disrupted.” said Smith continuing “If you are not willing to embrace new technologies like the Internet of Things and blockchain to face those new threats, you are, maybe subtly, at some point going to extinction.”
One of the biggest beneficiaries of the implementation of the blockchain technology is most definitely the shipping industry. With the help of the blockchain FedEx can settle any disputes about delays, errors and other kinds of problems that might happen. This is enabled by the blockchain ledger that is shared between everyone on the network and cannot be altered by anyone thus making the information safe.
The FedEx’s CIO Robert Carter was also present at the conference and has said:
“We move easily 12 million shipments a day and that more than doubles during the peak seasons. While we absolutely believe this technology is going to scale, right now it makes sense for us to do this in our freight world.”
There are many big companies that work together in their industry towards the implementation of the blockchain technology such as IBM, Maersk, Accenture, APL, JM Baxi and many others.
FedEx has gotten involved in a organization known as the Blockchain in Transport Alliance that tries to set the industry standards for the use of the blockchain in transportation. Blockchain has a great potential for lowering the transaction cost, but also lowering the working capital and speeding up the overall processes.
The company has been experimenting for some time with a small bluetooth-based, low-energy tracking sensor called Tron – said the FedEx’s CIO Robert Carter. They have filed for the biggest number of patents on Tron than any other technology in their company.
There are some estimations that the blockchain technology’s applications will support 10% of the global GDP, so by these future implementations these logistics companies try to tap in the momentum as early as possible.
Countries like Australia are also looking into how they can implement the blockchain in their trade and supply chains. So not only for the private sector but also for many countries in the world the question for blockchain implementation has become the hot topic of discussion.