Blockchain is a decentralized, digital ledger where all transactions are recorded chronologically and are public to the people and computers with access to the ledger (paraphrased from dictionary.com and Investopedia). Blockchain technology first appeared with the creation of Bitcoin, a cryptocurrency (Investopedia). Blockchain eliminates the need for a “middleman”, in the case of bitcoin, it bypasses banks. Instead of referring to a central authority or server, computers are independently arriving at conclusions/verifying data in a peer-to-peer network, with the network consensus becoming the official record of the transaction (Coin Desk).
At the moment, blockchain is primarily used for cryptocurrencies. But, UPS and other logistics companies have identified it as something that will decrease costs and delivery times, and improve security for freight. Early this month, UPS joined the Blockchain in Trucking Alliance (BiTA). Judging from CNBC interviews with UPS executives, blockchain should be something we see used more in logistics in the next few years.
Additionally, companies like Toyota are exploring blockchain’s application to autonomous vehicles. It could improve navigation and cars’ ability to communicate with each other. It could also have applications in the car insurance industry (Reuters).
From the perspective of transportation planners, some externalities we’ll be dealing from blockchain technology with are job loss, more light freight moving through cities as shipping becomes cheaper, and its use in autonomous vehicle technologies. It might also have some uses in state transit agencies, especially for tracking costs of different projects.
Some ted talks/other videos on blockchain:
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