In a centralized world, choice is often taken away from us. Amongst the supply industry, brokers simply connect shippers to the cheapest carriers without regard for efficiency or capacity. This wastes a great deal of time, money, and gas, all which we cannot afford to spend as demand increases for both products and labor.

The existing system also doesn’t motivate companies and individuals to be their best. Poor performance has few repercussions for those who fall short, but potentially dangerous consequences for those whose work is affected. Restaurants, for example, rely on timely deliveries. If they don’t have inventory, they cannot serve their customers and lose business. If deliveries are late enough that the food is rotten, they also cannot serve spoiled goods to their customers and lose business. The restaurant would never work with that particular driver again if it were up to them, but ultimately it’s a broker’s decision.

In a decentralized economy, however, everything is more transparent. Fr8 Network’s platform enables all parties involved in the supply industry to see one another’s data and rate performances. This way, the script is reversed: if the driver does not deliver loads in a timely manner, he loses business because nobody would want to hire him.

Reputation indicates reliability, which is essential for economic prosperity. A decentralized system is just what we need to ensure it.

The reputation problem

Decades ago, trains were the most efficient means of transporting goods. They were few, enormous, and easy to track (and railroads are fixed, so there was no getting lost). Trucks enable a more versatile mode of transportation, but they are more difficult to trace, so they are not held as accountable for mistakes or laziness.

Load boards post an extreme volume of listings. Most reputational data available only consists of proof of insurance and driving records, which is not nearly enough information for suppliers to make educated decisions. It’s impossible to sift through the abundance of listings manually and find the perfect carriers, so suppliers turn to brokers — but they are not incentivized to let suppliers know if carriers are dependable or thieves.

This hoarding of information results in a high amount of fraud. Counterfeit documents, fictitious pickups, and double-bind brokering schemes (which use innocent trucking firms to carry stolen loads) are all possibilities. An average of 220 loads are stolen every quarter, which totals to approximately $105 million wasted annually.

How we plan on fixing it

Fr8 Network’s platform, Fr8 Board, is decentralized and completely transparent thanks to blockchain technology. Blockchain also enables the usage of “smart contracts,” which allow parties to settle terms and then automate their promises to one another (reducing the likelihood of someone not following through).

Once a shipment’s smart contract is finished, our blockchain application captures all relevant data in real time: pickup time, drop-off time, payment settlement, and location. If a driver’s history of poor performances is available for suppliers to see, he or she has incentive to step up their game or risk losing work. Scams can be caught and prevented easily, too, especially when shipments are traceable.

All of this data composes a user’s Fr8 Rating, which quantifies the user’s reputation. Platform participants can contribute to one another’s Fr8 Ratings by writing reviews, so that everyone’s performance indicators are as comprehensive as possible. Ratings encourage actors to be dependable and honest, which establishes industry-wide trust and helps parties make secure bookings without a broker’s assistance (eliminating the accompanying fee).

Extra incentives

Our platform utilizes Fr8 Tokens; a cryptocurrency members can use to access the system and make transactions. Fr8 Tokens play an important role in daily workflow; they are required to contract shipments, and the amount necessary is determined by factors including progress updates, the contract’s value, and of course, reputation scores. If an actor has a low score, this could detriment professional relationships and reduce income.

Fr8 Tokens’ presence enables us to penalize poor behavior. If someone does not leave a rating, has a low score, or abuses the system in any way, this actor could be subject to less favorable credit terms. Fr8 Board also makes recommendations for potential supplier-carrier connections (everyone has different needs and preferences, so the Board accounts for those nuances), so if parties want to be included in the recommendation engine, it’s advantageous for them to perform well.

Confidence in business partners is crucial to the trucking industry efficiency, so by making relevant parties’ reputations visible, Fr8 Network is prepared to make the supply chain more effective and transparent.