So stop me if you’ve heard this one lately: “Do you own any Bitcoin?”
Yes, we are in the throes of Bitcoin-mania. Some claim that it is the currency of the future, while others anxiously await its impending collapse. The Chicago Board of Exchange (CBoE) began trading Bitcoin futures this week and the Chicago Mercantile Exchange (CME) is planning to start next week. Other than the occasional story about a corporate takeover or a U.S. Senator resigning (which would be leading stories at any other moment in time), Bitcoin is all CNBC talks about.
Whether you are jumping up and down in sheer elation because you bought coins at 300 dollars and change last year or cursing yourself for not pulling the trigger earlier as you see it soar past $18,000 today, all transportation industry participants can rejoice in the fact that the cryptocurrency is providing a use case and, more importantly, legitimacy to the underlying technology called blockchain.
Despite the volatility that the world is witnessing as cryptocurrency prices whiplash up and down literally hundreds and thousands of dollars per minute (which traders love but truckers hate), blockchain technology promises to provide more stability and transparency to the entire logistics process.
From lane pricing to record of ownership to payments, smart contracts that will be tracked on the blockchain promise to immensely reduce variability and enhance visibility in the supply chain. Production, shipping, warehousing, and delivery will be clearly presented for all blockchain participants to see.
While some companies are attempting to harness the power of blockchain technology for their individual needs, others are banding together to build the standards for entire industries. The Blockchain in Transport Alliance (BiTA) has pulled together companies large and small across the entire transportation sector (and some from the tech sector as well) to write and officially certify the rules of the road for blockchain technology around the transportation industry.
As private equity firms, venture capitalists, large corporations, and other interests watch the meteoric rise of cryptocurrencies that utilize blockchain technology at their core, it will prompt further investment in other technologies that use a blockchain as their engine (or at least a part of their apparatus).
So if you feel like you have missed out on the cryptocurrency boom/bubble so far, don’t worry. The true value of blockchain technology has not even begun to be realized.
Stay up-to-date with the latest commentary and insights on FreightTech and the impact to the markets by subscribing.
