The blockchain is coming to an industry near you, and guess what, it is coming to an industry close to you, real soon! The fact of the matter is that, the technology that is the blockchain, has touched quite a few sectors already. There has been a concentration of blockchain in the finance sector and we’re seeking quite a few corporations, banks and even traditional exchanges incorporate the blockchain for their day to day operations.
We’re also seeing it spill over into the education sector as universities are looking to add blockchain education to their courses. Some universities are going further and using the technology to actually verify academic credentials.
It’s also being used by the UN to fight human trafficking and to address climate change.
Suffice it to say, blockchain is revolutionizing the world.
Today, we will be talking about how the blockchain is being used to improve yet another sector.
The intersection of trust, finance and the shipping sector.
A young and ambitious project by the name of CargoX (CXO) is looking to shake up the sector in a meaningful way by integrating the blockchain.
Bill of Lading
Before we get into the innovation and what CargoX is trying to provide, let’s get into why it is important or, rather, the significance of the Bill of Lading segment.
What is a bill of lading?
Well, a bill of lading is typically a document that is issued by the sender of a good to a transportation agent ( a truck, a train, airplane of freight ship). This document is in the ownership of the transportation agent through the delivery phase and then handed over to the receiver of the good. This document when signed by the receiver, shows that the receiver of the good, did, indeed receive it. The document acts as a form of trust for the sender, the deliverer and the person who receives the product.
The bill of lading essentially acts as a proof ownership across each part of the transaction (sender, shipper, reception).
If you’re thinking, wait, this seems like an ancient way of doing things. You’re on the right track. It really is. But most have probably thought, if it ain’t broke, don’t fix it.
That is, until the blockchain came about.
Now, you probably already know that the shipping industry is a rather large one.
You probably already know that demand would only increase as the world becomes more globalized and transactions continue to occur across borders.
You are probably also thinking, there definitely needs to be some improvement in this segment of the logistics sector.
This is where CargoX comes into play.
What is CargoX?
CargoX is a blockchain based project or decentralized application that will operate through the Ethereum blockchain. The project will be specifically be focused on bill of ladings in the shipping industry.
The shipping industry is an industry that is quite valuable and it is worth billions of dollars due to the fact that, as mentioned above, more transactions will occur as more globalization takes place.
CargoX and its blockchain based solution will make certain that it has quite a few improvements over the current ways of doing things.
What are they?
- Security – The blockchain based solution presented by the team will be more secure, there will be no centralized storage, it will be securely encrypted and written on the blockchain.
Current Method– Happening on Paper. Not as secure as it could be.
- Speed – The speed of issuance of this document (smart bill of lading) via the blockchain will be quite fast as it is electronic.
Current Method – Traditional, old fashioned paper. This process can usually take a few days or even in worst cases, up to a few weeks. One can see how this would pose quite a problem in a fast paced world.
Paperless – The paperless option also makes it to where it is an improvement on current processes. No need to worry about the paper and where it is.
Current Method – They must account for the paper! You can see how time consuming and how much of a hassle that this can be.
- Savings on Cost – By upgrading the process and taking it to the blockchain it minimizes excessive and unnecessary operations that have to be conducted now. Instead of a $100, CargoX seeks to take the cost down to $10. A significant savings.
Current Method – Transport, other parties and services involved add to the costs of the deployment of the bill of lading.
Also, a fact that you need to know in this industry is that it has certainly been ripe for significant improvement but hasn’t necessarily changed for a variety of reasons. One significant reason may be that entrenched players are centralized and are able to profit from sticking to current methods.
The CargoX method seems like it could certainly tackle a good portion of the industry, it is certainly a project that should be added to a watchlist.
Important things to know about the Industry
- There are 50 Million Bill of Ladings issued per year. That’s right 50 Million!
- Each Bill of Lading costs average to least a $100.
- There is in excess of several billion dollars in courier costs that are incurred by these companies at the present moment. These costs could be eliminated.
- The average time it takes from origin to destination can be about five to ten days. An issue in a day and age when one can click a button on Amazon and potentially get the product in two days!
Partnerships & Supporters
The team is currently partnered with MakerDAO and Milsped Group. The former partnership will lead to advantages in the creation of smart contracts. While the Milsped Group partnership will allow for extensive knowledge, research and insight into the world of shipping and logistics.
They are also supported by various parties such as the ministry of infrastructure in the Republic of Slovenia, Costella, and others!
The team looks to have the relevant expertise as the CEO has been in logistics and supply chain management and the CBDO has also been involved in the field as well.
Founder & Chief Executive Officer
Chief Business Development Officer
Chief Technology Officer
ICO & Tokens
Their ICO has already take place and their coins CargoX (CXO) are circulating on the market. Their coins can be purchased on Kucoin and IDEX.
They aimed to raise 7 Million through their ICO. They distributed 40% through their ICO.
Their tokens will be used to issue and transfer the CargoX smart contracts, CXO will act as the fuel which runs the CargoX system.
So far as progress goes, the platform is now live and is in the beta testing phase.
Summary & Opinions
In summary, the CargoX project looks very exciting with a bright future. They’ve already partnered with some of the major players in the industry, they already have a working product and the team seem to have the experience necessary to steer the project to success. It’s definitely one to watch as they work toward moving the 50 million bill of ladings per year onto the blockchain!