Blockchain has presented itself as the new way to keep records of monetary transactions in the shipping industry.
The cryptocurrencies used within it, such as Bitcoin and Ethereum, have become popular by providing a way to create digital transactions.
Recent blockchain developments in the container shipping industry have seen the introduction of a specialized cryptocurrency and both Japanese and Singaporean companies beginning partnerships to develop the technology.
But, if blockchain confuses you, the infographic below from Techiespad and the following explanation from technology blogger Stacy Miller will make it easy to understand how blockchain creates transaction records.
The blockchain begins when you buy a product or a service from someone over the internet and pay using a cryptocurrency.
Blockchain records your transaction details in a page, called a block, which is like a document on the internet that no one can make alterations to.
Folders store a collection of these pages in what constitutes as a chain.
The chain is secure because multiple devices store pages by using the blockchain, rewarding participants with a sum of money which can serve as compensation to the user for their CPU space and electric power consumed.
This way, nobody gets a bad deal and the system is as secure as you make your cryptocurrency trade to be.
Tracking is also stopped by the blockchain as it only keeps a record of your Bitcoin transaction, hiding your identity and any other markers to ensure anonymity.
Read more: Wolfgang Lehmacher, Head of Supply Chain and Transport Industries, World Economic Forum, recently examined the suitability of blockchain and blockchain-based distributed ledger technology (DLT) to the port, harbour, and terminal industries in his 'Blockchain Technology for Ports' technical paper