Block Chain Technology Brings Transformation Opportunities to the Logistics Industry

In recent years, the logistics industry has developed rapidly with broad prospects. Data shows that the Compound Annual Growth Rate (CAGR) of logistics market is globally expected to be 3.48% from 2016 to 2022, reaching 12.256 trillion US dollars in 2022. Especially in China, with strong consumption and strong livelihood demand, the logistics industry has a larger market size, which is close to 40% of the global share, ranking first in the world for three consecutive years.

However, under such a high growth rate, under the rise of e-commerce, logistics industry become more and more fragmented. With Fragmentation, low gross profit, package lost/warehouse overload, information leakage, low efficiency, long business chain, and insufficient use of resources, all those are serious problems in logistics industry which Optimus want to solve. By using blockchain technology’s key features; distribution, smart contract, encryption and tamper-proof, Optimus want to solve these problems of the current industry.

In May of this year, the “2018 China Blockchain (Non-Financial) Application Market Survey Report” jointly published by Price Waterhouse Coopers(PWC) and VeChain mentioned that the logistics industry is considered by the industry to be the most innovative and application value besides the financial industry.

Block Chain + Logistics = ?

What does the blockchain mean for the logistics world?

“The logistics world is a strongly collaborative, and the blockchain is the fulcrum for instigating efficient collaboration,” said the head of the Optimus Team.

It is reported that the Optimus team is actively promoting the application of blockchain in the field of logistics.

Optimus’ leader believes that as a supply chain service, the logistics industry is well suited to the application of blockchain technology. The logistics ecosystem is a complex community of interests composed of multiple participants which including shippers, train drivers, carriers, recipients, and logistics companies and so on. This leads to high collaboration costs and inefficient collaboration. Problems such as lack of trust, low transparency, digital islands, high idling rate, and a complicated settlement process ultimately lead to increased logistics costs and extended lead times for end customers.

The logic of deconstructing the industry has a concept of “flow”. From the initial “commercial flow”, “logistics flow” as well as the corresponding “information flow” and “flow of funds”. Behind this is a key issue — the transfer of ownership of goods.

The logistics industry utilizes blockchain technology to record and deliver capital flows, logistics, and information flows in a real and reliable manner, and to resolve the trust friction generated by asset ownership during the transfer process. Thereby, the processing speed and efficiency of the logistics settlement are significantly improved, which solves the problem of lack of traceability and anti-counterfeiting of the goods, ensures the information security and the privacy of the sender and the recipient.

The station at the center position: First Logistics Public Chain Solution

We know that some logistics giants have begun to explore blockchain technology to improve the efficiency of logistics operations. However, there is a big gap between the maturity of the blockchain technology and the business needs, and the commercial landing is still rare. The industry expects more outstanding teams to take part in.

OPT is a top-level blockchain technology team in the world. It is committed to using blockchain technology to realize logistics intelligence and provide one-stop on chain DAPP and currency solutions for all levels of logistics enterprises.

Specifically, this is a public chain designed for logistics industry applications based on EOS underlying technology. It solves the problems of the information silo, system security, privacy violation, payment uncertainty and low efficiency of the overall industry. The logistics process can be traced throughout the whole process and guarantees the seamless delivery of the whole process.

OPT adopts a layered technology architecture, including access layer, storage layer, blockchain layer, consensus layer, interface layer, and application layer. Through the combination of “logistics + blockchain”, it allows the participants of logistics ecology deploy blockchain fast and low cost. Especially, it promotes the overall division of labor and cooperation in the logistics industry to be more effective by making full use of data value and realizing data flow.

Optimus’ ultimate goal is to promote intelligent logistics and gather scattered industrial clusters together, allows tremendous changes to the transportation industry which the end consumers can feel the cost reduction and experience improvement at last.

In the view of OPT team leader, blockchain technology can penetrate into all aspects of the logistics industry to make effective improvements and ultimately implementation of diversified scenarios, including logistics platform chaining, traceability of goods, real-time matching of industrial chain collaboration, logistics monitoring and driver dispatch, whole-process tracking, security and privacy, insurance business, supply chain finance, etc.

Optimus’ leader said, blockchain technology can penetrate all aspects of the logistics industry to make efficiency improvements, and diversified scenarios for example logistics platform chaining, full traceability of goods, instant matching of industrial chain collaboration, logistics monitoring, and driver scheduling, full tracking, security and privacy, insurance business, supply chain finance etc.

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