Blockchain in use: Logistics
Have you ever wondered if blockchain is really useful? Now you've got a chance to know!
Hi,🙋
I am Jacob from CryptoFolks, I’m here to talk about the revolution we’re having right now - blockchain (with crypto involved of course). I hope you will enjoy this journey! However, our launch procedures 🛫 require us to inform you not to consider this article as investment advice, as it represents solely our personal opinion. Always remember to manage your portfolios independently.💁♂️
What is blockchain?
Let’s start by asking ourselves what blockchain actually is — the answer is very simple. Blockchain is a distributed database made up of blocks. Each block consists of three elements: a timestamp – which tells us when a given transaction occurred, transaction data – e.g., the amount of funds transferred or the destination address, and a hash – a cryptographic summary of the previous block. It is this last element – the hash – that creates the characteristic one-way structure of the blockchain, forming the so-called “chain of blocks”, because each block contains information about the previous one 🔗.
Let’s use an example. Imagine we have a notebook lying in the middle of a room, and anyone can write in it – but no one can erase or alter anything. Every entry has a date, time, and the signature of the person who added it. Everyone sees what was written, when, and by whom. That notebook is the blockchain – a shared, immutable record of information.
Why logistics?
Logistics is one of the most complex areas of business — involving many entities, locations, documents, transportation methods, and goods. This naturally leads to problems with transparency, trust, and efficiency. And as if that wasn’t enough, all these elements must work in harmony to keep the entire operation running smoothly 🎼. Logistics has made huge strides forward thanks to technology, but there’s always room for improvement, and that’s where blockchain comes in, offering improved efficiency — which, after all, is the whole point.
Example: A shipment might pass through 5 different companies (producer, freight forwarder, warehouse, carrier, client) — each using its own IT system. This leads to discrepancies, delays, and lack of transparency.
Blockchain enables the creation of a single version of the truth – a record seen by all, which can’t be altered or manipulated. In an ideal world, this could be managed by a global trade organization or exist on a public network like perhaps Ethereum 🌐.
This makes blockchain the ideal tool for managing complex supply chains.
Main Applications of Blockchain in Logistics
🔍 1. Cargo Tracking (Traceability)
Blockchain enables precise tracking of where and when a product was located. This data is immutable and available in real time to all participants – including you.
Today, we see the opposite trend among many carriers — we know less and less about our shipments. There’s also a huge issue with fake tracking numbers, which ultimately harms consumers 😤.
Example: In the U.S., many small online stores selling through large platforms (e.g., Amazon) are forced to provide tracking numbers from big courier companies. What do they do? They buy such numbers (often with random address data), and ship the package using a cheaper local carrier with low or no delivery standards. Blockchain could solve this – without forcing anyone to use specific couriers.
➡️ You could trace the journey of an apple from a specific orchard all the way to the store shelf – and any consumer could do this.
🛡️ 2. Combating Counterfeits
In industries like pharmaceuticals or luxury goods, counterfeiting is a serious issue. Blockchain gives each batch a unique “digital passport” – impossible to fake without access to the manufacturer’s system.
Example: Luxury watches, perfumes, medications — a customer scans a QR code/tag and sees the entire product history. Yes, QR codes can be faked — but the idea is that each product has a unique passport, making counterfeiting a logistical nightmare. You’d have to embed fakes between real products from the same batch to avoid suspicion.
⚙️ 3. Smart Contracts – Automation
These are self-executing agreements stored on the blockchain. When specific conditions are met, the contract executes automatically – much like an if statement in Excel or programming.
✅ Automated Delivery Payments
Description: A contract between supplier and recipient says: “If the goods are delivered to warehouse X and scanned within the specified time – release payment.”
Benefit: No paperwork, fast settlement, no manual invoice approval.
Example: A car parts supplier delivers to a factory – after RFID or GPS confirms delivery, the smart contract triggers payment 💸.
🌍 Automated Customs Clearance
Description: Smart contracts can include transport docs, compliance certificates, and automatically submit them to customs. Upon validation (e.g., certificate of origin), clearance is done automatically, what is more all of this paperwork is safe and secure on the network.
🔁 Returns and Complaints Handling
Description: If a client submits a return with valid reasoning (which could be analysed by AI) and ships it back within 14 days, the smart contract automatically triggers a refund returning money to the customer.
Example: An e-commerce customer returns shoes, the system tracks the return – once received, the contract executes the refund without human intervention.
🔐 Data Access Management
Description: Only specific parties can read selected data. A smart contract manages this: “Only warehouse A and customs B can view document X.”
Example: For medical imports – only sanitary inspection sees quality certificates, others just see transport info.
This is very important, because someone might say: “But you can see everything on the blockchain!” — and that’s true, but only on public blockchains. There are also private blockchains, where data is encrypted, and access is restricted. Plus, we already have zero-knowledge proof technology – cryptographic tools that confirm something (e.g., a secret recipe) without revealing its contents 🔐.
📄 4. Documentation Management
Instead of manual shipping lists, invoices, certificates — everything can be digital, attached to the package, and instantly accessible to authorized parties.
Example: Electronic waybills that can’t be lost or forged, containing all required documents (stored on the blockchain) needed by customs. This would be huge for optimizing the legal things around shipping.
Case Study: Walmart
I probably don’t need to introduce Walmart, one of the largest retail chains in the world. They wanted to solve the problem of poor traceability in food supply chains.
🎯 Main Goal:
Quickly identify batches of contaminated food (e.g., during a salmonella outbreak)
Enhance consumer safety
Improve supply chain transparency, especially for fresh products with short shelf life
📦 The Problem:
Traditionally: tracing food origin (e.g., lettuce) took 7 days
No shared platform between farmers, shippers, and retailers
🛠️ Blockchain Implementation:
Technology: IBM Food Trust (built on Hyperledger Fabric)
Every supply chain participant adds data:
Harvest date
Field location
Batch number
Transport info (time, temperature)
Delivery to store
📲 How it works:
Walmart employee scans a QR code → sees the entire path of the product from farm to shelf in 2.2 seconds
If contamination is detected, Walmart isolates the specific batch instead of pulling all products
📊 Benefits:
Tracking time reduced from days to seconds
Higher consumer safety 🛡️
Fewer unnecessary product recalls
📈 Scale:
Rollout includes lettuce, mangoes, meat, dairy
Walmart now requires this tech from suppliers in selected categories
And again — it’s Walmart, one of the world’s largest retailers
The Future and Trends
🌐 Integration with IoT (Internet of Things)
IoT devices (e.g., temperature or GPS sensors) will automatically write to the blockchain - no need for someone to write the data in.
Example: If a medicine container overheats, the system immediately records it and notifies the recipient.
🧠 AI + Blockchain
Artificial Intelligence can analyze blockchain data, predict risks in the supply chain, and suggest optimizations. AI could also gain access to private blockchain databases providing opportunities for countless implementations that are safe and secure.
📏 Standardization – e.g., GS1
Organizations like GS1 are developing global data standards for blockchain – enabling scalability and cooperation. Their standards also support blockchain-based solutions like IBM Blockchain Transparent Supply.
Thank you
For reading this article, I hope it was as fun to read as it was to write. Blockchain can really change the world, first implementations are already in place with much more to come!
amazing read bro! For me Vechain was a really good project for logistics, but not holding right now :) Blockchain using Timestamps and location stamps is perfect for showing 100% transparency