Blockchain technology has an exponential future as more and more global companies are embracing it. Introduced by IBM and Maersk, a blockchain platform called Tradelens welcomes two international shipping companies, CMA CGM and MSC.
Shipping Giants: CMA CGM and MSC
The new integration between IBM’s blockchain platform and shipping companies will onboard all data about supply chains. According to TradeLens head Marvin Erdly, physical processes based on manual paper have been replaced with the digital framework. All parties in the deal can easily access data as all information is embedded over blockchain via smart contracts.
As new members of the TradeLens platform, MSC and CMA CGM will act as new nodes that will validate smart contracts, thus ensure transparency and trusted nature.
Since its inception, IBM’s blockchain network has a record of 30 million shipments and almost 13 million documents. The entry of giant supply chain companies shows that the Coronavirus pandemic has increased the process of digitization.
$50 Trillion Industry
The global supply chain is a $50 trillion industry that needs to be assisted with new digital technology even in the times of lockdown. To compensate for this necessity, Blockchain is serving the purpose.
TradeLens is launched in 2018, but it did not receive significant appreciation from the community. Its main goal was to onboard more supply-chain related companies to strengthen the network. With the integration of French container and shipping company CMA CGM and MSC Mediterranean Shipping Company, it has gained a critical mass.
Entities in a digital deal of shipments can easily access information but access to sensitive information is only possible for companies. Don Tapscott wrote a book entitled “Supply Chain Revolution,” in which he stated assets can be transferred between the parties with ease and security. According to Topscott, Blockchain “can enable the digital handling of trade documents, such as purchase orders and bills of lading.”
Global chief digital and information officer for MSC, Andre Simha, said TradeLens is playing a key role in the digitalization of world supply chains. The need for blockchain in the big tech industries has increased since the onset of COVID-19.