Blockchain for and in Logistics: What to Adopt and Where to Start
- What are the potential applications for blockchain technology in logistics?
- Where to start with blockchain technology in logistics?
2. Blockchain for and in Logistics
3. Analytical Frameworks
3.1. Identifying Potential Blockchain Applications: What to Adopt
3.2. Identifying the Opportunity: Where to Start
“Blockchain is not a disruptive technology, which can attack a traditional business model with a lower-cost solution and overtake incumbent firms quickly. Blockchain is a foundational technology: It has the potential to create new foundations for our economic and social systems. But while the impact will be enormous, it will take decades for blockchain to seep into our economic and social infrastructure. The process of adoption will be gradual and steady, not sudden, as waves of technological and institutional change gain momentum.”
4. Blockchain Applications in Logistics: What to Adopt
4.1. Relative Advantage
4.4. Trialability and Observability
5. Implications of Blockchain Applications: Where to Start
5.1. Single-Use Cases
Conflicts of Interest
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|Distributed Database||Each party on a blockchain has access to the entire database and its complete history, i.e., no single party controls the data or the information and every party can verify the records of its transaction partners directly, without an intermediary.|
|Peer-to-peer Transmission||Communication occurs directly between peers instead through a central node, i.e., each node stores and forwards information to all other nodes.|
|Transparency with Pseudonymity||Every transaction and its associated value are visible to anyone with access to the system, i.e., each node or user has a unique 30-plus-character alphanumeric address that identifies it. Users can choose to remain anonymous or provide proof of their identity to others when transactions occur between blockchain addresses.|
|Irreversibility of Records||Once a transaction is entered in the database and the accounts are updated, the records cannot be altered, because they are linked to every transaction record before them. Various computational algorithms and approaches are deployed to ensure that the recording on the database is permanent, chronologically ordered, and available to all other on the network.|
|Computational Logic||The digital nature of the ledger means that blockchain transactions can be tied to a computational logic and can, in essence, be programmed, i.e., users can set up algorithms and rules and automatically trigger transactions between nodes (e.g., smart contracts).|
How is the blockchain better than current practice?
|The degree of perception that an idea is better than current practice. This could be measured in economic or social benefits, convenience and satisfaction. The perception of an advantage is of importance, when considering its adaptation.|
Is the blockchain compatible with current practice?
|Considers the degree of an innovation of being in line with adopters’ needs, existing values and previous experiences. The more consistent with social norms and systems the more applicable an innovation is.|
Is a blockchain application difficult to use or understand?
|Perceived difficulty to understand and use the innovation. The easier to understand, the faster it will be accepted and adopted.|
Is it possible to test the application before committing to blockchain?
|The length that an innovation can be experimented with before implementation. Pre-testing is considered as risk reducing and enables “learning-by-doing”.|
Are there any visible results of blockchain utilization?
|Concerns the visibility of results from the innovation. Clear and concrete results decrease the actors’ uncertainty of implementation.|
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Dobrovnik, M.; Herold, D.M.; Fürst, E.; Kummer, S. Blockchain for and in Logistics: What to Adopt and Where to Start. Logistics 2018, 2, 18. https://doi.org/10.3390/logistics2030018
Dobrovnik M, Herold DM, Fürst E, Kummer S. Blockchain for and in Logistics: What to Adopt and Where to Start. Logistics. 2018; 2(3):18. https://doi.org/10.3390/logistics2030018Chicago/Turabian Style
Dobrovnik, Mario, David M. Herold, Elmar Fürst, and Sebastian Kummer. 2018. "Blockchain for and in Logistics: What to Adopt and Where to Start" Logistics 2, no. 3: 18. https://doi.org/10.3390/logistics2030018