Example of how blockchain & IoT could be applied in logistics

Tracking perishable goods

Imagine a scenario in which a five-star hotel in Bangalore is ordering wine from a French vineyard. The shipment is handled by numerous intermediaries and traces a complicated path before it finally reaches Bangalore. First, the wine is transported by truck from the vineyard to the nearest seaport or airport. Here it is handed over to the freight forwarder for the next stage of the journey. Finally, when it reaches the airport or seaport in India, another truck is required to transport the wine to the warehouse in Bangalore.

Blockchain technology makes it possible to generate and store all the necessary documents online on a single platform accessible to all. Since all the parties have access to the same information, there will be far fewer disputes and reconciliation problems, so the process will be quicker and more efficient. Blockchain allows parties to use smart contracts, so in this case that would mean drafting the conditions required for the wine to be transported safely. Data loggers would monitor the condition of the wine during the journey and continuously feed this information into the blockchain database. Once the shipment reached its destination, it would be easy to check the information against the contract conditions and pay the shipping company immediately. If the wine had suffered any damage during the journey, the relevant penalties would be levied and the information could immediately be shared with the insurance companies for further processing.