How CargoX will revolutionise Bill of Lading tech
As the logistics industry, the backbone of all global trade, still relies on one of the oldest methods for issuing a proof of ownership (the Bill of Lading, B/L), this can cause numerous problems, including: delays in delivery, the high cost of re-claiming the goods when the B/L is lost, stolen or damaged, and also the time-consuming processing of the documentation.
That is why CargoX is about to revolutionise the industry. We are developing the world’s first blockchain Bill of Lading. We will create an open system based on Ethereum and encrypted permanent decentralised data storage which will enable the creation and exchange of Bill of Lading documents.
The diagram above illustrates the workflow between different parties in the CargoX system.
Our blockchain-based Smart B/L will work in a similar way to tokens. Users (shippers, carriers, forwarders, importers) will be able to create, transfer and claim ownership of the B/L, and thereby the cargo that is the subject of the B/L.
The process will be simple, smooth, safe and secure, but also cheaper and much, much faster than it is today with technology with roots in the Roman times!
A simple and secure process
- At the origin the carrier uses our dApp (distributed application) to create a blockchain-assisted Smart B/L with the exporter’s address and sends it as a token to the exporter.
- After receiving the money for the goods from the importer, the exporter transfers ownership of the Smart B/L to the importer using our dApp.
- The importer can claim ownership of the goods at the destination port by presenting the Smart B/L token to the carrier or designated release agentat the destination using our dApp.
- At the destination the carrier releases the goods to the importer once the importer proves ownership of the Smart B/L token.
All global-trade-sensitive information will be hidden from public view and only shown to the importer, the exporter and the issuer of the Smart B/L and to the designated release agent at destination; special care will be given to properly secure all information about multiple business interactions between the same peers.
What is needed for Smart B/L to thrive
To build the ecosystem and drive the market, the CargoX will create tools, initial rules and protocols to ease and incentivise the interactions between partners, to boost network growth and facilitate creation and exchange of Smart B/L by actively developing the following elements:
- A governing body comprised of industry leaders that will be responsible for the adoption of the standard in the industry and legislature.
- CargoX B/L eXchange protocol (B/L X) for exchange of Bill of Lading (B/L) documents.
- CXO token that will serve as a protocol utility token and allow decentralised transfer of digital ownership claim and facilitate a payment method for logistics services.
- Smart B/L dApp is a web-based decentralised application allowing customers to interact with a Smart B/L digital document.
- Smart L/C dApp will allow depositing of money in accordance with smart contract and will be released when the buyer receives the goods. Banks and current L/C procedure such as escrows and payment intermediaries will become obsolete.
- Smart Booking Module — integrated at external shipping platforms (such as 45HC.com, etc)
Revolutionary gains will be achieved through speeding up the process, as it will take minutes or at most hours, not days, to deliver the document in a safe and secure way.
There will be no intermediaries involved, and the document will be stored in a distributed and publicly confirmed way, yet it will be encrypted so that its contents will only be available to the issuer and the recipient.
Want to know more? Visit www.cargox.io.