FedEx (NYSE:FDX) reiterated its confidence in blockchain technology on Monday at the Consensus 2018 conference, where CEO Frederick Smith said the US shipping giant was investing in distributed ledger technology (DLT) to achieve higher efficiency in its freight business. According to chief information officer Robert Carter, blockchain is a game-changer, the Wall Street Journal reported.
Smith remarked:
“We’re quite confident that (blockchain) has big, big implications in supply chain, transportation, and logistics. In the area where FedEx makes its living, this could be a big deal.”
Giving cross-border transactions as an example, he said they often fail or get delayed because the parties share inconsistent data. Current practices also enable criminals to commit fraud by trading illegal items or avoiding taxes.
“What blockchain has the potential to do, for the first time ever, is to make that information available to all of the parties,” Smith added.
As of now, FedEx uses its own databases and systems to store detailed records of custody. Blockchain technology would allow it to track shipments beyond its systems. Moreover, it would come with several significant advantages, among them fewer errors, lower costs, and higher security.
“This is such a game changer for us because it extends those boundaries outside of our four walls,” Carter stated.
FedEx is working on a technology that has been created on the Ethereum and Hyperledger platforms. Carter revealed that the company had yet to decide which ledger technologies are best for it.
Last year, we reported that FedEx had become a member of the Blockchain in Transport Alliance (BiTA), an organization of executives operating in the freight and transportation industries that aims to standardize blockchain approaches.
Carter unveiled that BiTA was scheduled to meet next week, adding he “wouldn’t be surprised if there was an announcement” about some blockchain test involving large companies.
BiTA managing director Craig Fuller said the alliance was indeed planning some big announcements.
This article appeared first on Cryptovest
