Private and Public Contracts in Blockchain Logistics

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June 6, 2023


Block Chain / BlockChain / RECOMMENDED / technology


Private and Public Contracts in Blockchain Logistics

The management and transactions of data and business processes are about to undergo a revolution, thanks to blockchain technology. The adoption of blockchain, which was first developed as a supply chain technology and then as a financial technology, has spread to public administration, transportation, and logistics. Although reports have mentioned use cases for the former, we know little about how it disrupts logistics and transportation in both the freight and passenger dimensions.

A frictionless process allowing seamless cross-border mobility of goods and services is becoming increasingly important.We must closely coordinate customs, airports, ports, rail, and other transportation infrastructure. It is crucial to have a digital infrastructure supporting these needs, including clouds, intelligence management, payment systems, and passporting. This integration has the potential to improve trade ties and alter the global supply chain and logistics landscape. In the machine economy, it may also change how resources and capabilities in this setting can work together more effectively.

Studies sponsored by businesses, governments, or academia can offer fresh perspectives to advance the transformational impact in tackling challenge-driven issues in public and private manufacturing and services. However, further research is required in multi-modal logistics and transport environments, particularly those that integrate existing and upcoming systems.

Clearly, this problem is transdisciplinary; various academic fields and stakeholders must work together to fully utilise blockchain and related technologies for improvements to both private and public contracts regarding logistics. Therefore, it is necessary to conduct empirical research and develop new theoretical foundations, concepts, models, and methodologies. To demonstrate the adoption of blockchain in the related supply chain, manufacturing, and service sectors for transportation and logistics, we require elaboration and synthesis. This includes examining industries such as automotive, aviation, rail, shipping, ride-hailing services, forwarding, delivery services, and travel.

Considerations for Private and Public Contracts in Blockchain Logistics 


Cross-Border Management: 

Blockchain is quickly developing to help improve cross-border cargo trade flow traceability. Its intention is not to replace cutting-edge physical technologies but rather to act as a decentralised distributed ledger for data transactions and cross-border product and service authentication during logistics handling. Due to its ability to demonstrate line-of-sight and chain-of-custody for each transaction, blockchain is relevant in such operations regarding private and public contracts. When multiple transport modes, logistics providers, and businesses are involved, we employ proof of work and smart contracts to achieve this. Adhering to the local laws and customs is made easier as a result. We can successfully carry out the authentication of receipts for goods and services because it is indisputable.

Cross-border trade flow management typically closely monitors high-value goods. Blockchain technology can be crucial in the transportation of such valuable goods. As an alternative, blockchain can also help with easily copied products, like medical and pharmaceutical products. There are numerous examples, such as the adoption of blockchain in airports and seaports as well as its use in the diamond supply chain. The need for more effective cross-border management and other cutting-edge technologies drives the demand for blockchain in transportation and logistics applications. Blockchain technology supports the cross-border management paradigm and is one of the key areas for future blockchain research and upscaling.

Business Model:

Innovative business models that support blockchain delivery thrive as blockchain technologies advance along the adoption curve. We can divide these cutting-edge business models into three categories in transportation and logistics.

1.) cloud and enterprise platform services,

2.) blockchain as a service, and

3.) digital mobility as a service.

To provide discrete and end-to-end services to final customers, a cloud enterprise platform and service business model aims to group various services on a single platform supported by cloud computing technology. For instance, OEMs, automotive supply chains, and logistics service providers can manage orders and design transport and logistics operations through private blockchains using the Microsoft Cloud platform. For public and private contracts, blockchain service providers can offer a blockchain-as-a-service model. Cities can adopt services such as the rental and use management of electric bikes and electric scooters to best utilize the sharing economy in their public transportation services.

The increasingly interconnected digital eco-shift systems have sparked a significant shift from a traditional ownership model to a usership model, transitioning from a product to a service orientation. As a result, the business strategy in logistics and transportation has changed to emphasise digital mobility as a service model – which is highly important with regard to both private and public contracts. In such a revolution, blockchain is crucial. For instance, blockchain mobility as a service can support the infrastructure alignment of charging facilities with electric vehicles, the swapping of batteries under an exchange scheme (in-use and end-of-life) for mileage, energy storage and power, and last-mile delivery of goods and services using Unmanned Aerial Vehicles (UAVs) or drones. These new blockchain business model paradigms will challenge established business models and accelerate society’s transition to a digital future.

Ethics, Security, and Privacy:

There are many ethical implications of blockchain technology. Some aspects of access and equity, consensus-building, open information, security, and governance impact ethical issues. The privacy of both individuals and organisations is fraught with serious problems. Specific people and employees may lose their privacy depending on the information provided in the blockchain, especially with regards to logistics that often require contact names and addresses for verification purposes. Processes and transactions that include a high level of detail may diminish worker rights

We should take care when making wages, personal information, and performance public. These mostly relate to issues with identity privacy. Blockchain may also be subject to accessibility issues, another ethical consideration. Smaller businesses may be more disadvantaged than larger ones if they lack the knowledge and resources to benefit from blockchain technology. Organisations, transporters, and logistics firms may experience this injustice in less developed parts of the world. This scenario might also apply to individuals and micro businesses, where some blockchain-related activities could displace lower-skilled employment. These aspects of the ‘digital divide’ might widen as processes become more automated and rely more on information technology.

It is unclear whether blockchain technology can lead to more moral logistics and transportation practices. The trade-offs and paradoxes are likely to persist, such as privacy versus transparency and exploitation versus integration into contemporary economic systems. As the technology becomes widespread, it will be necessary to investigate the best moral and responsible behaviours.


Recently, RoadLaunch and CargoX announced their collaboration to build a platform that will serve thousands of users in the transportation industry. For freight quoting, dispatch, capacity management, load matching, asset tracking, transparency, and instant settlement, RoadLaunch is an intuitive, completely integrated, and simple-to-use system. The open, independent, and multi-award-winning CargoX platform, which utilizes blockchain technology, is widely regarded as the best method for transferring valuable information in the digital shipping industry and utilizing both public and private contracts. The partnership will integrate the RoadLaunch permission-based blockchain platform with the Ethereum Network-powered Blockchain Document Transaction System technology from CargoX.

The largest commercial blockchain alliance in the world is called the Blockchain in Transport Alliance (BiTA). BiTA has about 500 members from more than 25 nations, and their combined annual revenue exceeds US$1 trillion. Most BiTA members work in freight, transportation, logistics, and other related sectors. A common goal of the alliance’s members is to encourage the adoption of new technologies for private and public customers. They create industry standards, inform industry participants about blockchain technologies, and promote the adoption of these technologies to work towards success. Additionally, BiTA members have worked very hard to develop and put into practice a common framework and standards upon which the transportation, logistics, supply chain, and freight industries can build ground-breaking blockchain applications.

DFreight is investigating the future of digital shipping by utilising cutting-edge technologies like blockchain and big data to streamline supply chain management. They intend to create a more effective and secure way to track shipments throughout the supply chain by building a comprehensive digital freight forwarding platform. Big data is also being used to improve operations and gain insights into trends in international shipping. By utilising these cutting-edge technologies, DFreight is positioned to dominate global shipping in the future.

The Future of Blockchain Logistics

Blockchain technology will keep transforming the logistics and supply chain sector in the future for both public and private contracts. It has been demonstrated that blockchain technology can lower costs while increasing transparency and traceability. In particular, it does away with the need for intermediaries, which are frequently unnecessary and expensive. Blockchain will help companies streamline their processes and increase productivity by offering a secure and open way to track and manage shipments. Additionally, businesses will be able to automate many of their processes, thanks to blockchain-based smart contracts, which will further cut costs and improve efficiency. As technology develops, we can anticipate even more cutting-edge blockchain applications in the logistics and supply chain sector.

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