What's driving the renewed investor interest in blockchain? Galaxy Digital Holdings Ltd. (TSX-V: GLXY) (OTC: BRPHF) founder Mike Novogratz recently stated that the necessary financial infrastructure required to support institutional investors is now falling into place. Institutionalization is particularly significant in this space because it brings much-needed stability, counteracting the previous wild fluctuations in pricing. With major firms like JPMorgan Chase & Co. launching a stable coin called the JPM Coin, the institutional watershed is now "just getting started."
Recent cryptocurrency scandals notwithstanding, Blockchain technology bring a range of benefits such as more transparency, better traceability, reduced costs and higher efficiency, as well as faster transactions. High on that list, however, is a more secure and safe way for multiple parties to share information.
For instance, blockchain could realize its potential of transforming the backbone for all trade and commerce in the 21st century by integrating with the world's logistics and supply chain systems. Companies who seek to do this have little to do with cryptocurrencies. Platforms such as Litelink Technologies' (CSE: LLT) (OTCPK: LLNKF) 1SHIFT platform are now effectively digitizing the supply chain, using blockchain's smart contract distributed ledger technologies to manage trust and transparency across an integrated digital ecosystem of shippers, third-party logistics providers (3PL), trucking carriers and even customs brokers and factoring companies.
1SHIFT is set to revolutionize the transport industry by enabling all parties in the logistics industry to share information digitally on the blockchain. The platform differentiates itself from billion dollar logistics apps such as Flexport and Convoy by linking every stakeholder in the logistics industry onto one single platform through the blockchain, thereby facilitating secure end-to-end communication. Using AI-driven analytics, 1SHIFT improves tactical and strategic decisions within the industry, reducing the likelihood of human error, while optimizing on performance and speed.
Supply Chain Innovation – Audit & Dispute Resolution
Perhaps the greatest advantage of incorporating distributed ledger technologies into a digital supply chain is the subsequent creation of "digital trust." For instance, the blockchain can create an immutable audit trail for all users, effectively resolving any and all disputes. Dispute resolution between carriers and shippers has long been a major source of frustration within the industry. When these disagreements arise, they are difficult to arbitrate—truckers cannot, after all, offer proof of arrival—a situation that costs unneeded fees, penalties and aggravation.
To address this, the 1SHIFT system uses GPS location data and geofencing to record the time and location of the trucker's arrival and uploads it directly to the blockchain, where it can't be reversed or modified. Once they arrive, the trucker then scans the signed bill of lading, which is also uploaded onto the blockchain ledger and processed using AI algorithms to ascertain whether there were exceptional conditions present at delivery. Through LiteLink's proprietary adversarial permissioned blockchain platform (based on JPMorgan's Ethereum-based distributed ledger protocol Quorum), 1SHIFT ensures an immutable shared record between all parties, which quickly reduces dispute escalation.
1SHIFT also provides early warning for potential future disputes, allowing everyone to proactively seek solutions rather than point figures after the fact. Disputes that are escalated are done so quickly and with minimal belligerence. That means no more angry phone calls, lost sleep, money or time.
Building Digital Trust Through Ratings Engine
Another way the blockchain instills "digital trust" between logistics parties is by bridging the lack of confidence between shippers and carriers without previous work histories through 1SHIFT's ratings engine. Adding an extra layer of accountability, this ratings engine provides insight into the previous performances and market prices of its pre-approved carriers.
New carriers and shippers rate each other based on multiple different factors, including punctuality, communication, and prompt payment. Since all relevant data points are available through the platform, ratings are based off verifiable data, and results are aggregated to provide an overall rating, ensuring a fair overall assessment.
This ratings engine is built on the blockchain, meaning that the information is secure, transparent and trustworthy. Trust is generated between shippers, third-party logistics providers and carriers, who can view every aspect of the operation in real time, encouraging transparency and honesty.
Other Players On The Move
Now with blockchain poised to make an outsized impact on the way we do business going forward, it's likely we'll see some major moves from players in the blockchain technology space.
Riot Blockchain Inc.'s (NASDAQ: RIOT) recently announced a $3 million bridge financing with a syndicate of lenders. Riot's 8,000 cryptocurrency mining machines are fully deployed and the company has stated their costs have been reduced by approximately 24%. The company planned cryptocurrency exchange RiotX is still in the works with a launch plan scheduled to be operational in twenty-four states in the near future.
Another notable player in the blockchain space is HIVE Blockchain Technologies Ltd. (TSX.V: HIVE) (OTCQX: HVBTF) recently announced an up-listing to the OTCQX. The OTCQX gives Hive additional liquidity and exposure for existing and future US Investors. HIVE's state-of-the-art GPU-based digital mining facilities in Iceland and Sweden produce newly-minted digital currencies like Ethereum, continuously as well as ASIC-based capacity which produce newly minted digital currencies like Bitcoin.
Major financial corporations that have their own blockchain initiatives include HSBC, IBM, Accenture, and Deloitte, with JPMorgan Chase & Co. (NYSE: JPM) being the first US bank-backed crypto-currency. US investment bank JP Morgan as created a crypto-currency to help settle payments between clients in its wholesale payments business.
We'll likely hear about major investments from these and other companies in 2019. Still, it's looking like blockchain will shake the world by powering the digital transformation of the world's next-generation supply chains, rather than with cryptocurrency.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated forty four hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of LiteLink Technologies Inc.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC