The BlockchainRevolution in Transport

B I TA . S TUD IO

B I TA . S TUD IO

What is Blockchain?

A decentralized and distributed digital ledger to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.$

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For most transactions across industries, each participant currently records its own version of the truth.

With multiple records of the same information across systems, the data is vulnerable to error, fraud and inefficiencies. Frequently, businesses rely on intermediaries and internal processes to mitigate these risks.

With blockchain, transactions agreed by consensus are added to a block, a unique cryptographic code is calculated of the block, and that code is added to the following block creating a unique chain of blocks containing all the transactions.

Blockchain Market Comparison

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Benefits to Enterprise

• Frees up capital

• Lowers transaction costs

• Speeds up processes

• Provides security and trust

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Use Cases I

Fuel Repayments and Repricing Without the Need for a Processor

Immutable record of agreed economics

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Payment and Settlement Solutions

EDI Communications

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Use Cases II

Internet of Things Odometer recordings,

parts warranties & vehicle servicing

Recording RPFs and Transactions

Quicker, cheaper payments

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Use Cases III

Self-Executing Smart Load Contracts

Contracts executed and arbitrated using blockchain, lowering risks and costs for both carriers and

shippers.

Proof of Provenance

Verifiable provenancewith long

supply chains.

Recorded on blockchain, available to

relevantparties.

Proof ofDelivery

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Adoption + Implementation Forecast

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2018-2020 - Education, Case Studies and Early Adoption• Industry-wide education on use cases outside of cryptocurrency.• Develop industry-wide standards and apply to case studies.• Early adoption within innovative startups and pilot programs at large corporations

with extensive resources (i.e., IBM, Daimler).• Regulatory authorities develop auditing and compliance practices.

2021-2025 - Growth• Early adopters and standards activity provide greater clarity and minimize

uncertainty, driving widespread adoption.

2026 and beyond - Maturity• Blockchain is widely adopted and considered an integral part of the supply chain

ecosystem.

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Disruptive Impact

As blockchain digitizes, decentralizes, secures and incentivizes the validation of transactions, it will fundamentally change the industry.

• Eliminates need for intermediaries

• Expedites payments and settlements

• Automates proof of delivery

• Provides immutable record of agreed financials

End-to-End Implementation Snapshot

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1 CarrierThe Carriers and OEMs connect the trucks to a permissioned blockchain network.

End-to-End Implementation Snapshot

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2 3PLs/ShippersThe carrier solicits freight from 3PLs and shippers connected to theblockchain network.

End-to-End Implementation Snapshot

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3 HoursOnce the carrier has a truck, the network matches up a shipper based on ELD, also telling the network how many hours are available for the driver.

End-to-End Implementation Snapshot

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4 Terms• A reference price is used to determine how

much the shipper will pay for the load.

• A smart contract is created and transmitted to the carrier that dictates price, fuel and accessorials.

• The carrier agrees to the terms.

End-to-End Implementation Snapshot

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5 BlockchainAfter the contract is executed and the truck is dispatched, the load events are transmitted to the blockchain, giving the shipper full visibility of the load throughout the transaction, along with the history of the carrier and potentially the driver.

End-to-End Implementation Snapshot

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6 Payment• Once the load has been completed,

a proof-of-delivery is transmitted. An invoice is sent.

• A bank pays the carrier immediately and the carrier is done.

End-to-End Implementation Snapshot

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TermsBlockchain

Carrier 3PLs/Shippers

Payment

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Hours

Hurdles

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Scalability• Public blockchains are currently limited to 3-20

transactions per second (tps). Visa is capable of approx 56,000 tps.

Data Privacy• Expedites payments and settlements

Collaboration• Many applications of blockchain require agreement of

protocols within industries.

Commercialization• Blockchain applications code are generally open

source and can be utilized anonymously, so intellectual property is difficult to protect.

450+ Members

Stay Up-To-Date

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Visit BiTA.studio to join the BiTA Blockchain in Transport Alliance.

Visit FreightWaves.com/blockchain for on-going coverage on FreightWaves.

Fall Symposium

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The BiTA Fall Symposium, a members only event, will take place at the Gaylord Texan Resort and Convention Center. Attendance is free for company-level BiTA members and available to individual BiTA members at a ticket price of $1,000. Space is limited to 350 attendees, so reserve your spot now!

Nov. 14 // Grapevine, TX

MarketWaves18

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MarketWaves18 will electrify you with quick-fire demos of disruptive technologies, top-ranked keynote speakers, and adding a new 25-minute WavesTalk format with thought leadership from some of the top minds in the industry

For this event, MarketWaves18 focuses on the market and economic outlooks going into 2019 and beyond. As the industry is becoming more digitized, MarketWaves18 will also be showcasing technologies and services that use quantitative data to project and monitor the freight markets.

Nov. 12-13 // Grapevine, TX

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