3.6. What is Blockchain?¶
To help you understand the blockchain technology better, you might want to watch a few youtube video explainers. One of the better ones was made by European Blockchain Services Infrastructure (EBSI): tutorial video.
Blockchain is a technology that allows secure exchange of value. We use it to manage the ownership of digital documents of value and other digital assets. Blockchain transfer is especially useful where digital assets frequently change their owners, like in with business, trade and transport documentation.
The big advantage of blockchain against other technologies is, that it is practically impossible to change history of transactions, which prevents fraud and provides a mechanism to recognize authentic original documents.
Highlights of numerous advantages over any centralized system are also complete transparency and protection against fraud. Because there is no need to trust any individual organization or company (not even CargoX) there can't be any abuse of trust. Decentralization of the Ethereum means there is no single central authority, which makes public blockchain a perfect and the only viable tool for the global trade and global document exchange.
Ownership of digital documents can be transferred in mere seconds regardless of whether transfer is regional or transatlantic.
While logistics and supply chain is an ideal area for use of the public blockchain technology, CargoX's technology to transfer documents is universal, supporting all modalities and industries.
Blockchain is especially suiting for tracking the origin of documents, their authenticity and each and every transfer of ownership between parties. This prevents counterfeiting and offers the same properties as physical paper documents have. Permanently storing all transactions creates a powerful audit log, offering a new insight into the transparency, one that even customs authorities are recognizing.
CargoX uses the most advanced and fastest-developed blockchain on the planet - the public, open-source blockchain called Ethereum. Numerous corporations have chosen Ethereum as their blockchain of choice, and it comes as a no surprise, that Ethereum has the largest developer community worldwide.