“Blockchain” has become a popular buzzword these days, right up there with the word “cryptocurrency.” Even though the crypto space still seems daunting and intricate to most of the public, they can still understand what the concept of digital currency entails. Blockchain technology, however, remains more of a mystery. Is it a program? A kind of currency? And better yet, why are people so excited about it?

Some folks herald the system as “solution for all your business problems.” This is not exactly true, but it is indeed a revolutionary technology. Let’s break down what has the tech world so hyped up, and if that hype is justified.

What does blockchain do?

Blockchain was originally the support system behind Bitcoin. Because Bitcoin is a decentralized cryptocurrency not backed by any government and does not require banks for verification, it was important to display a public ledger of users’ transaction histories. Steemit provides this analogy:

“Have you ever seen those US dollars with a stamp on it for a website like www.wheresgeorge.com, which let you see where that specific dollar in your hand has been previously? Now imagine that this dollar was tracked on that website every time it changed hands, not just when someone thought to visit and input the serial number. Now imagine every dollar was tracked every time it was spent. You would be able to see in sequence how every piece of US currency.”

The network itself is decentralized, meaning that it never stores data in a singular place. Standard centralized methods usually require servers, which can be hacked or destroyed in natural disasters. In such events, all information is lost — but with blockchain, data is stored in multiple locations, ensuring its safety in case of accidents and deterring cyber attackers.

Why is blockchain so popular?

Numerous companies are turning to blockchain for its unprecedented transparency. Individuals and businesses can save costs on transaction fees because third-party verifiers are unnecessary, and transactions are immutable (and visible) once they’re complete. Blockchain can streamline business operations while protecting users’ identities.

Blockchain has other uses, too. The system can host “smart contracts,” which parties can use to automate terms when carrying out agreements. Smart contracts deter people from taking advantage of one another, and payments are more straightforward to manage when they happen immediately.

Is the hype worth it?

For some things, yes. Blockchain is a remarkable solution to a variety of outdated business issues. However, it’s not a universal fix-all. According to Sheila Warren, head of the World Economic Forum Center for the Fourth Industrial Revolution’s Blockchain and Distributed Ledger Technology project:

“Blockchain has to be the right solution for the right business problem. Busting the blockchain hype is necessary to make sure businesses are using it in the right way and not damaging the long-term prospects of the technology.”

To do this, her team “had to design a practical framework for people who knew nothing about the technology.” This framework includes 11 questions to help companies decide if blockchain has any place in their business, such as: Are you trying to remove intermediaries or brokers? Are you working with digital assets instead of physical ones? Can you produce a permanent, authoritative record of the digital asset in question? If you answer no to at least these three, then blockchain’s abilities are of little use to you.

What Fr8 Network is doing with blockchain

Those of us at Fr8 Network decided that blockchain is precisely what we need to solve a pervasive problem with innumerable real-world consequences: the inefficiency of the trucking industry. Vehicles drive billions of miles every year partially full our outright empty because brokers are incentivized to connect the cheapest shipper and carriers without regard for logistical practicality. With blockchain, we can make information transparent and remove the need for third-party connectors.

Our Fr8 Board, thanks to the public ledger’s transparency, grants parties access to data regarding timetables, locations, reputations, and more so shipper and carriers can make well-informed decisions. We want to optimize the backbone of American commerce and make a positive impact on the environment. Blockchain is not right for everyone, but for Fr8 Network, it allows us to disrupt the trucking industry for the better.