Jade Logistics unleashes a blockchain solution – CargoChain
CargoChain Chief Executive Officer David Lindsay was recently interviewed by The National Business Review. You can watch it here, Jade Logistics unleashes a blockchain solution – CargoChain, or read a recap of the interview below.
Port software company Jade Logistics Group has created a new business called CargoChain to offer a blockchain solution for the massive inefficiencies in global logistics information sharing.
The platform uses Hyperledger fabric in a fully public blockchain to deal with previously unavailable cargo information and support the development of third-party applications.
Jade Logistics and CargoChain chief executive David Lindsay says for companies wanting to build an application on the platform, about “80% of the job is already done” because the Hyperledger blockchain is already baked in.
“All that remains is for them to build a thin layer application over the top. Conceptually, there was far more work that went into building a platform that replicated the physical supply chain. Blockchains are difficult but the benefit of what we’ve done is take a lot of that pain away,” he says.
Jade first observed the problem of siloed data among logistics companies first with ports and then looked across the entire supply chain, and “the problems were the same.”
“We see it as the foundation of potentially all supply chain applications to be developed. The supply chain is complex, with millions of actors, each with their own unique supply chain problems. This gives them the deep building blocks to help them solve the problems of information sharing.”
How CargoChain differs
Blockchain is at the top of the technology hype cycle and most companies understand its importance but are struggling to understand how they might use it.
Companies such as HSBC, IBM, Maersk and many others involved in the logistics sector are producing their own blockchain solutions but Mr Lindsay says the CargoChain option is different.
“Ours is a platform, whereas most others are working on particular solutions. We liken our platform to the airline reservation systems deployed in the late 1970s. These enabled frictionless travel for consumers and cargo around the world. So, essentially, CargoChain is like an airline reservation system for the global supply chain.
“CargoChain is also independent, whereas a lot of other players in the market are concerned with protection of their patch. It also tracks cargo right down at the smallest part, such as a packet of milk powder. It’s not transport, pallet or container focused and tracks the only thing common across the whole supply chain – cargo,” he says.
Mr Lindsay says he believes the collaborative and independent nature of the platform is a first for the global industry. The platform can deal with all types of information from structured, unstructured, images, video files, certificates, free-form text and more.
“The proposition is made even more powerful as today’s consumers are demanding trust while those involved in the supply chain require full transparency and visibility. We saw the need for a digital platform that provides this by sharing trusted information among all supply chain actors.
“It’s is one of the few supply chain solutions in the world that has blockchain as an integral working part of its platform to provide this trust,” he told NBR.
Mr Lindsay says CargoChain’s ultimate vision is to empower the supply chain by providing its platform to application developer communities globally.
“We want to allow developers to solve the world’s supply chain problems for all logistics players, large or small.”
Jade Logistics is the “first cab off the rank” to use the platform. There is already interest from major food exporters, driven by the need to prove complete provenance with an emphasis on food trust and safety.
“We are still young and only really began in June to target customers. But it’s fair to say there is a lot of interest in this for two reasons: supply chain visibility and blockchain. People want blockchain solutions to give them trust,” Mr Lindsay says.