The news portal forklog.com reports concerning CoinDesk that at the Symposium Consensus 2018, which is now being held in NY, the head of the largest U.S. logistics company FedEx, Fred Smith, spoke about the enormous importance of using blockchain technologies in the economy, in particular, in the field of logistics.
Blockchain is designed in a way that it can record every step of a transaction delivering the information in a permanent digital ledger thus ensuring transparency.
Even the biggest issue for logistics across borders, due to varying standards and regulation across nations will be addressed efficiently by the existence of a blockchain. What blockchain has is a potential for the first time ever to make the information available to everyone, " he noted. The company has joined industry groups such as the Blockchain Research Institute and the Blockchain in Transport Alliance (BiTA), an industry trade group that serves to unite a broad array of member companies in guiding the development of blockchain-based data-sharing software in the transportation industry.
Robert Carter, CIO and executive vice president of information services of the logistics company also spoke stating that the firm will first explore that deployment in the freight industry since one single ship could contain millions of transactions at the same time. "While we absolutely believe this technology is going to scale, right now it makes sense for us to do this in our freight world".
Answering a question from the panel's host, author Don Tapscott, on how he persuaded Smith to approve the decision on blockchain exploration, Carter said, in fact, it was the other way round.
"It's Fred that dragged me into this, he said. We're operating on this place between the physical world and the digital world".
By introducing a shared, transparent and traceable chain of custody that runs throughout the shipping industry, Smith called blockchain technology "a game changer".
Technology is "the next frontier" for supply chain operations, CEO Smith says. Companies that fail to adopt blockchain and other new technologies will face "extinction", Smith warned.