ShipChain ICO review! The SHIP token uses blockchain technology for supply chains, transportation, & logistics. Here's what you need to know about ShipChain & the SHIP coin.
ShipChain is a platform using blockchain technology aimed at disrupting transportation and logistics by making their processes more secure, effective, and transparent. There are a series of problems outlined in ShipChain’s whitepaper. Bad tracking is one of them because for end-users, a shipping experience can be negatively impacted by fractured tracking without regular and reliable updates. Lack of transparency is another issue they’ve identified, and this comes as a consequence of bad data handling, which can confuse brokers to the point that they don’t know which carrier and driver is carrying the freight. This figure is set to increase in the future, as lack of transparency—combined with bad tracking—can lead to a lack of accountability. Brokers will often withhold information regarding who's moving the cargo, and fragmentation among carriers causes uncertainty regarding the location of cargo at a particular time. A lot of errors in freight are produced by hand-offs and oftentimes, neither side will take responsibility if a container doesn’t get from the ship to the truck. Despite their claims of making freight easier to ship and manage, most of the times they're high maintenance; thus increasing freight costs and decreasing pay for shippers. Using a ShipChain sidechain, the platform aims at unifying shipment tracking across the Ethereum blockchain. Geographic waypoints across each smart contract will be encrypted, with access being granted only to the parties involved. This will not only allow carriers to communicate with ease, but it will also give shippers more visibility across the supply chain. The sidechain will record and publicly validate information regarding waypoints, loads, and basic compliance information. ShipChain also plans on offering decentralized brokerage by enabling carriers to find shipments and route transportation based on factors like fuel use, weather conditions, traffic, distance, and more. The system will generate a smart contract upon pickup and hold payments in escrow until the release conditions are met. The sidechain and main blockchain will track the cargo and monitor its security. Through the use of blockchain technology, the security of assets will also be increased, and every step of the shipping process is accounted for. Every time electronic logs are reported, assets are automatically verified using barcodes or hardware RFID integration (or radio-frequency identification). The platform operates on a trustless concept, as the arrival of particular shipments can be verified through digital escrows that have the encrypted waypoint information and data about the loads. The Ethereum Virtual Machine powers ShipChain's Contracts, which can be duplicated and used to create a shipping escrow on the distributed ledger. The ShipChain Protocol is a fork of the Ethereum software, and will feature side-chains, such as the one implemented by the ShipChain Foundation, called ShipChain Prime. Side-chains can store and verify load data and individual tracking waypoints. Large partners will be able to have their own side-chains and operate them using the ShipChain Protocol. The smart contract is initiated when a shipment order is placed. It will include a hash sum signature of the shipment and all the information surrounding it. This data can be verified by people with a copy of these values on the main Ethereum blockchain. It can additionally be encrypted & stored in a side-chain for more detailed tracking. The contract will be completed on delivery once all waypoints and validations are affirmed. Carrier partners can take data from ShipChain’s tracking system and post it to their websites and systems for broader use, thus contributing to a more unified tracking system. Not only will ShipChain allow open access to its blockchain marketplace, but it will also build the first platform of services on it. It will be called the ShipChain Web Platform, a centralized system for booking and managing freight shipments that will incorporate many types of carriers and forms of transportation. You’ll need to own at least one SHIP token in order to get “ShipChain Membership Status,” which essentially grants you access to the blockchain for the purpose of booking freight or tracking shipments. In accordance with the upcoming Electronic Logging Device mandate from the US Department of Transportation, the team will work with ELD developers in order to achieve its first goal of completing ShipChain’s Track & Trace technology.
Disclaimer: This is not financial advice. I absolve myself of all responsibility (directly or indirectly) for any damage, loss caused, alleged to be caused by, or in connection with the use of or reliance on any content, goods or services mentioned in this article. As usual, DYOR.