Amid the ongoing frenzy of cryptocurrency trading in almost every part of the world, it’s easy to forget the importance of the underlying technology most cryptocurrencies are based on. Blockchain technology, first implemented by Bitcoin, is the driving force behind the effectiveness and adoption of cryptocurrencies. As the technology matures, more businesses are realizing its potential, and how to implement in different use cases across various industries. One industry that’s in dire need of a technological facelift is logistics, which is already being wedded to the blockchain all over the world. This trend is continuing with the recent partnership between FR8 Network and OpenPort, two blockchain powered startups operating in the shipping and freight industry.
A Little on OpenPort
OpenPort is the only multinational digital logistics provider operating in the entire Asia Pacific reason. The company, headed by CEO, Max Ward, has been busy forging partnerships to eliminate rising logistics costs, especially in emerging South Asian markets.
In February of 2018, the company announced it had joined the prestigious “Blockchain in Transport Alliance” a forum dedicated to the development of blockchain standards and education exclusively for the freight industry. With big industry heavyweights such as UPS, FedEx, Penske already in the alliance, OpenPort’s addition is a nod to burgeoning manufacturing markets in the Asian Pacific Rim.
One of OpenPort’s major tasks is to incentivize carriers to use smart-phone based delivery verification systems. This is done by providing a micro-payment to drivers for each use. A trial run has been completed in the Philippines, where OpenPort allows drivers to acquire smartphones for free and pay them off over time via the aforementioned micro-incentives.
FR8 Network: Company Background
The Fr8 Network is another blockchain project, creating an arrangement of decentralized applications to streamline existing value chains in the South Pacific freight industry. The advantage the FR8 Network team has been highlighting is to expel high-cost arbitrage as well as redistributing income.
The Fr8 Network team aims to address the huge gap left by existing solutions, including cloud-based, by limiting the presence of the human element and accurately calculating incentive structures which benefit all stakeholders across the supply chain.
The network identifies the freight needs of a particular shipper, then links it to a provider with an accessible capacity. As a result, the project can effectively wipe-out excess financier charges, with an expected 30% savings on every shipment.
Implications of the Partnership
News about the partnership was revealed via FR8 Network’s whitepaper, which also talked about how the partnership was aimed at enhancing existing logistical operations for OpenPort customers. According to Fr8 network’s co-founder and tech lead Sloane Brakeville, “We are thrilled to have OpenPort, a leader in digital innovation for logistics, join the Fr8 Network. Their existing enterprise customers will drive significant platform adoption of the Fr8 Protocol. As early participants, OpenPort will be influential in collaborating on Fr8 Protocol’s development roadmap.”
The collaboration is a strategic one, aimed at leveraging the blockchain to provide proof of delivery and increased control over in-transit shipments through increased transparency. This will allow the blockchain to store OpenPort’s ePOD data via the FR8 Network.
The partnership is expected to revolutionize the logistics industry, deploying irrefutable confirmation of goods delivery across emerging South Asian markets. This new system will enable drastic reduction of capital costs, as well as making the process faster, replacing the previous systems of supply chain finance on paper-based models.