Insuranceciooutlook

Addressing the Challenges in Shipping with Blockchain

By Insurance CIO Outlook | Monday, November 26, 2018

Blockchain has tremendously transformed various industries. The records of data transactions continue to increase day-by-day. Due to the large size of cryptocurrency, the large public implementation of blockchain becomes critical.

When we look at today’s shipping industry, a large amount of paperwork is involved, and various entities, individuals, and parties come together in the execution of a single shipping transaction. There is a lack of accountability and trust in the shipping industry. Also, insurance in the shipping industry is one of the most inefficient insurance types. 

IBM and Maersk have partnered to work on a shipment solution which will change the way that the industry tracks shipment. The shipping solution is named as TradeLens. The project helps minimize the amount of paperwork in the transportation of goods. The blockchain technology has been enhanced and utilized by governments all over the nation.

When considering the administrative services, the processing of huge data is critical. Digital technologies may help in collecting and processing the data, but it also has various disadvantages. The government has launched the U.S. Federal Blockchain Program to provide a more convenient user experience. This program will be able to anonymize and store data transparently and unalterably for federal agencies and businesses.

Payment services can be enhanced by launching the new cryptocurrencies or by using blockchain as the means of fund transfer. The cost overhead in funds will reduce if blockchain is implemented for payment services.

The ownership of the digital and intellectual property is recorded in the database of the government. Blockchain could record the data and time of various ideas, symbols, designs, artwork, and writings. So, the permanent record can be filed without any violations.

The benefits distributed to the people by the government have many issues like corruption and impersonation. The government has to take responsibility to offer the benefit to all the citizens equally. The corruption becomes huge only when the contracts to the suppliers are awarded fair competition. Governments should track the financial services in order to get benefitted economically and provide excellent public infrastructure. The adoption of blockchain will help to track how funds are being spent and ensure that the expenses are rightly being made accordingly to the government order for each project. With the help of this technology, all such requirements can be addressed and are able to prove the virtual possibility in real time now.

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