Cryptocurrencies are currently known by most individuals to have been high on the rise for a very short period of time, however followed by its near-immediate crash. While it is true that many branches of this blockchain industry have, in recent months, been unsuccessful, blockchain technology still presents a valuable resource for businesses.IBM and Maersk
The shipping industries is, and has been, ready to undergo the process of digitization for multiple years. IBM and Maersk have recently announced a collaboration made in the efforts of bringing this unification about. The two corporations plan on using blockchain technology to track the shipping of packages around the world.
These two blockchain giants’ integration has resulted in TradeLens, a shipping solution developed by both corporations. TradeLens prides itself in being an “open and neutral industry platform.”
The head of Tradelens at Maersk, Michael white, has stated that currently, the cost of handling a container shipment is similar to the cost of actually transporting that shipment. With the current methods of shipping, communication can be complex and many processes of shipping are handled through a paper, slowing shipping down. By digitizing shipping, the expense of these processes may be significantly lessened. This service is currently available only for early adopters but will become commercial by the end of the year.
Plausibility of Blockchain Technology
It is yet to be decided whether the blockchain industry will ever exit its infant stages, or if it is simply bound to be unsuccessful in the long-run. While there are a number of companies currently testing the system, 90% of these tests fail to make it even beyond the trial stage, according to a report from Forrester Research.
However, IBM continues to invest in this technology, confident that it will spike up in the same way we saw during early 2018. With 1600 employees currently working on blockchain technology, and with its increasing amount of investments compared to all other leading technology companies, IBM is sure to come successful if blockchain technology truly becomes successful.
Gartner hypothesizes that blockchain technology will be responsible for more than $3.1 trillion of business value before 2030. However, these long-term approximations involving technology are hardly few and far between, and the better half of them don’t end up being entirely true. Thus, this estimate, while promising an exciting future, should not be leaned upon too heavily.
Shipping must be the single most likely industry to see success utilizing blockchain technology. Given the number of parties’ required involvement, the deep complexity of transaction procedures, and, once again, the lag that comes along with paper processing, blockchain technology could stand to enact a serious improvement.
—Jacques Piccard, Managing Director of Davenport Laroche