The custom and border protection agency of the United States is set to run blockchain technology for tracking the live shipment of goods. The details of the test were released on the 24th of August.
The Launch of Blockchain Tech To Track Live Shipments
Blockchain technology has seen wide acceptance by firms and countries, as it is revamping many facets of human society. One of the phases of the human society blockchain innovation is set to revamp next is the tracking of live shipment of goods.
The agency will use the blockchain to verify the certificate of origin from the North American Free Trade Agreement and the Central America Free Trade agreement.
A fantastic implication of this innovation is the elimination of bureaucratic system of paperwork verification with the blockchain technology. The innovation as described by Vincent Annunziato, director of CBP’s Transformation & Innovation Division, as a “live wire testing,” an innovation that is still in the testing stage. As expected, if it works, the implementation would be introduced fully in September.
The innovation is expected to use mobile applications, and automatic verification means to streamline data of shipments.
Information on shipping is supplied through the blockchain system upfront for verification by the government, broker, and the importer. For example, a car shipment from Germany to the United States would be cleared with information through the distributed ledger technology; once the data is ascertained to be from the German government, there would be no need of presentation of paperwork.
The testing also aims at the feasibility of the interoperability between different blockchains in use by different companies. Annunziato said the custom is still trying to set up a measure that will aid the excellent communication between companies and the customs without building special nodes and customization. This will help the security of information across the sector.
Blockchain and the Shipping Sector
Earlier this month, IBM and Danish transport and logistics giant, Maersk launched their global blockchain-enabled shipping solution. The firms revealed 94 organizations had partnered with it them.
Meanwhile, the CBP is also working on the use of the proof of concept for intellectual property right. Annunziato said, “the IPR piece is interesting because we are looking at pulling the consumer in to get an authentication that a product is legitimate.” However, the CBP did not state the company they are in partnership with.