The sheer volume of data companies generate, and the need for compliance with international standards and regulations can create a logistical nightmare. In this post, we’ll explore how a new type of blockchain-powered storage system will help companies keep pace with the demands of international companies. We’ll also show you how it could help your company improve cost efficiency and streamline operations. On the other hand, people who are learning about blockchain are also reading articles about tracking down a parallel bitcoin industry.
Amazon using private blockchain for decentralized storage:
Online retail giant Amazon wants blockchain technology to track packages and make shopping faster and more convenient. Recently the e-commerce giant filed a patent application for a decentralized package storage system that could make it easier for logistics companies to track packages in transit.
The patent mainly focuses on real-time tracking of packages’ location via electronics. Still, the main idea is to store items and their associated metadata. You would place your goods and tracking information onto a shared blockchain ledger using any mobile device – such as a phone – and they would be linked to the item on the blockchain through an encryption process similar to cryptocurrency mining. The patent notes that the system could help logistics companies keep track of items in transit, but it’s also meant to solve problems in international trade.
Private Blockchain vs. Public blockchain:
A public blockchain is a bit more challenging to work with because it requires the entire network of users (nodes) to come to a consensus on a piece of data before the user on the blockchain can update it.
Once a node confirms that its copy of the data is correct, they confirm with all the other nodes that they have received it. It means it can take longer for someone new to join the system and start using it. Moreover, since each node only needs to know about its relationship with other nodes in its network, all communication between them is fast.
Placing items in blockchain storage could save companies money in two areas.
First, you wouldn’t need to hire as many security guards or warehouse workers because trusted parties would store your items. Second, since the app would be based on a shared ledger online, you could scale your operations as needed without paying hefty fees every time you wanted to make a change. The patent notes that the system could help companies reduce labor costs by as much as half and increase efficiency.
A blockchain-based storage solution might also help international companies speed up customs procedures. Placing your items in a blockchain-based storage system would fundamentally change how you trade internationally. These systems would allow you to track your shipments at all times and give instant access to the data in case you need it.
Public blockchain Decentralized Storage Systems
The idea of a decentralized storage system governing the entire logistics industry is undoubtedly ambitious. For example, large logistics firms already use complex systems for tracking shipments and complying with customs procedures worldwide. Still, there are often delays that can cause problems for companies or even result in lost revenue. In addition, e-commerce giants like Amazon and Alibaba are spending billions of dollars on warehouses around the globe to help them get products to customers faster than ever before.
What are the benefits of private blockchains over public ones?
Most of the centralized tech currently being developed is focused on increasing efficiency at the expense of encryption and security. However, many companies in the logistics industry depend on shipping partners for tractability, which means that those same companies are now serving as a bottleneck when it comes to identifying new technologies.
Private Blockchains can help companies speed up their operations instead of adding more points of failure by allowing them to run a single, secure network that all parties can trust with their data instead of using central servers owned by corporate IT departments.
A public blockchain is one where anyone can use the platform, and writing to it is open to all. A private Blockchain eliminates some of these restrictions by making it so that only certain users can write data to it. A private blockchain would allow for more flexibility but is also riskier. Since there is no central point of failure, if a computer or network gets hacked or knocked offline, the entire system will crash for everyone in the network.
Unlike public blockchains, public blockchains require an initial consensus among nodes to add information to the blockchain. A private Blockchain eliminates some of these restrictions so only specific users can write data to it. A private blockchain would allow for more flexibility but is also riskier because there’s no central point of failure.
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