Image of a laptop showing the word "Blockchain" to denote blockchain in logistics

Fintech Revolution: The benefits of blockchain in logistics

What is blockchain and why is it important for logistics? Blockchain is a distributed ledger technology where data and transactions can be accessed by multiple sources while still being tamper-proof through cryptographic hash-linked blocks. The integration of blockchain in fintech is the ideal solution to counter flaws in the traditional streamlining of financial processes in almost every industry. Blockchain in logistics and supply chain management is essential because it operates on high-security standards, with fewer time constraints and more flexibility and transparency in administrative, accounting and automation purposes. How does blockchain technology work? Blockchain keeps track of many sets of data in clusters. Every block has a pre-determined storage capacity that is filled and all of the blocks before it is connected or chained to it. Thus the term “blockchain” comes from the process of combining blocks of data to create a chain-like formation. What are the benefits of using blockchain in logistics? Fintech companies using blockchain technology overcome traditional challenges in the financial sector in terms of slow transactions, inability to prevent fraudulent activities and time-consuming processes. Most importantly, blockchain in logistics and supply chain management will efficiently counter these challenges through digital transactions, digital audit and digital paperwork. Let’s Wrap Up! Thus, blockchain is a simplified distributed ledger technology with greater visibility and security that facilitates seamless functioning of financial processes when integrated with fintech. It efficiently counters the traditional challenges in the financial sector including centralisation, lack of visibility, manipulation of data and high operational expenses. The integration of blockchain in logistics and supply chain management eases the time-consuming processes of transactions, audit and paperwork in every industry that involves financial data exchange and assistance.  Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.