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                                  USE OF BLOCKCHAIN TECHNOLOGY IN SHIPPING

What Is a Blockchain?
Blockchain technology is revolutionizing the shipping industry by enhancing transparency, security, and efficiency in logistics and supply chain management.
The identification and origin of the product/process is clearly traceable (“proof of existence”), which makes the risk of counterfeiting or manipulation a lot lower than with conventional processes. Thus, especially when it comes to dangerous goods transport and dealing with incorrectly declared cargo, blockchain can guarantee much higher levels of both safety and certainty. 
Blockchain can not only be used to trace the cargo but also the fuel that is being used. By this misleading information about origin and composition of bunker fuels can be minimized. Projects like' Bunker Trace'  are already working on a blockchain based solution to track and trace fuels and lead the shipping industry onto a greener route.
Blockchain technology is transforming the logistics industry by enhancing traceability, improving freight processes, and reducing fraud. Logistic companies use blockchain to create transparent, immutable records of supply chain activities, ensuring each step is verifiable and secure.
Real-World Applications of Blockchain in Shipping

Blockchain is a decentralized digital database or ledger that securely stores records across a network of computers in a way that is transparent, immutable, and resistant to tampering. Each "block" contains data, and the blocks are linked in a chronological "chain."

A blockchain is a distributed database or ledger shared across a computer network's nodes. While it is best known for its crucial role in cryptocurrency systems, maintaining a secure and decentralized record of transactions, blockchains are not limited to cryptocurrency uses. Blockchains can be used to make data in any industry immutable, meaning it cannot be altered. Since a block can’t be changed, the only trust needed is at the point where a user or program enters data. This reduces the need for trusted third parties, such as auditors or other humans, who add costs and can make mistakes. Since Bitcoin's introduction in 2009, blockchain use has exploded due to the creation of various cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts. Bitcoin and other popular cryptocurrencies, such as Ethereum and Solana, can be purchased through leading crypto exchanges. Data such as bills of lading and shipping documents are still available in paper form. These documents pass through many hands, and they must be continually updated and checked to ensure they are in the right place at the right time. In addition to being particularly prone to errors, these processes also cost a huge amount of time and money.  In contrast, using blockchain in shipping allows information such as that in a bill of lading to be stored in an uncomplicated, secure and transparent fashion. All authorized persons can view the data relevant to them at any time. In addition, having the data be assigned to a specific author in a clear and unalterable way (“proof of ownership”) makes manipulation more difficult. This means a boost in terms of reliability, a considerably shortened processing time and more security. By using a blockchain database, companies can track items throughout the entire supply chain, improving food safety in food supply chains. Shipping companies utilize blockchain solutions to reduce customs clearance times and decrease delivery times. Smart contracts automate financial transactions, streamlining the payment process.Several initiatives and pilot projects are already demonstrating the potential of blockchain in the shipping industry: Below are few examples which are being pursued and easily found on the internet.

TradeLens: A blockchain-based platform developed by Maersk and IBM, TradeLens aims to digitize global trade by providing a secure and transparent platform for all supply chain stakeholders. The platform has gained significant traction, with major carriers, port operators, and customs authorities joining the network.

CargoX: CargoX is an independent blockchain platform that focuses on providing blockchain-based document transfer solutions, particularly for bills of lading. The platform offers a secure, efficient, and cost-effective way to manage shipping documents, reducing the reliance on physical paperwork.

Everledger: Originally developed to track the provenance of diamonds, Everledger is now applying its blockchain technology to the shipping industry. By creating a digital record of a product’s journey, Everledger helps ensure authenticity and compliance, particularly for high-value goods.

Marine Transport International (MTI): MTI has developed a blockchain-based platform that aims to improve transparency and efficiency in container logistics. By providing real-time visibility into container movements and automating key processes, MTI's platform helps reduce costs and improve service levels                           

  Efficient cargo tracking is a cornerstone of global trade, but traditional systems often rely on siloed databases and manual processes, leading to errors, delays, and miscommunication. Blockchain offers a unified, tamper-proof solution by creating a shared ledger accessible to all stakeholders in the supply chain.

More and more projects are coming up will be coming up with an article on the latest "Shipfinex" project