Local trucking industry leaders are working to standardize blockchain technology that’s been made popular by cryptocurrencies but has other applications.
Blockchain, which was originally created for bitcoin, is essentially an incorruptible, decentralized digital ledger. Click here and here for more in-depth information about the technology.
Industry veteran and founder of locally based company TransRisk Craig Fuller co-founded the Blockchain in Trucking Alliance, which is a group that ensures the standardization of the technology in logistics and throughout the supply chain.
Founders have the goal of uniting leading freight and tech companies that have a stake in the development of blockchain technology, according to a news release.
Growing local company Lync America announced Tuesday that it had joined the alliance.
Lync America leaders said they recognize the potential for blockchain to disrupt the logistics business and transform processes used within the industry, such as contracts and tracking freight movements.
“It’s just a digital database,” Lync America CFO Brent Goldberg said. “In theory, you can put any kind of information in there.”
For example, if a truck of fresh produce is being shipped and is supposed to stay at a certain temperature, the technology could document the temperature every mile or at other designated increments. No one can change the information, so shippers and food manufacturers could keep an eye on the temperature as the produce changes hands and makes its way to the destination.
Companies that create software for the trucking industry are expected to incorporate blockchain into their products, Goldberg said.
Lync America joins more than 1,000 companies that have applied for membership in the alliance.
The alliance’s first blockchain standards in freight will be developed and published in 2018, and aim to address smart contracts, freight payment, asset maintenance, transparency, chain of freight custody and more.
“Smart contracts are one of the first things that [the alliance] wants to work on,” Goldberg said. “It creates a digital contract [that can’t be changed] between the shipper and the destination.”