Consider: Blockchain Uses in Transportation

Blockchain, Distributed Ledger Technologies (DLT), and other “Modern” methods of transparent financial transactions have been at the top of my mind this year as it probably has yours too with all the latest headlines we’ve been reading.

Blockchain technology is well known for use with cryptocurrencies; however, it has broad potential in applications beyond that of banking and financial services. It is being evaluated for uses in the transportation industry where it has potential benefits ranging from more efficient business transactions to increased tracking capabilities of cargo across all modes: maritime, trucking, aviation, and freight rail. Trade partners may also see great value in the use of blockchain within the broader global supply chain as well.

The Transportation Business is considering the advantages associated with blockchain and distributed ledger technology in a number of areas. In supply chain development, improved production and capital flow tracking could facilitate the accuracy with which manufacturers can distribute their products and create efficiencies with transportation providers. Transportation leaders may then also have increased access to secure information transfers across trade sectors, further adding transparency and value in the supply chain.

Global regulators and other regulatory systems are also reviewing the use of blockchain and distributed ledger technology. In the U.S., a variety of Executive Branch agencies are looking at the use cases as well as the national and homeland security considerations in blockchain including the US. Departments of Homeland Security and Defense. Other agencies including the Federal Trade Commission (FTC), U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Treasury, Office of the Comptroller of the Currency all have working groups to review the use of the technology. Cybersecurity issues throughout the use of blockchain and distributed ledger are also being evaluated.

Of interest to our European constituents, The European Union (EU) recently launched a new effort called the Blockchain Observatory Forum, which is part of the EU’s Digital Single Market (DSM) focus. As part of the launch of the initiative, the European Commission stated “This is particularly helpful for providing trust, traceability, and security in systems that exchange data or assets. There are a lot of potentials for blockchain to be used in many different areas such as financial services, supply chains or healthcare.”

The continued use of Blockchain and Distributed Ledger Technology has different implications for use cases, cybersecurity and privacy risks in different sectors. If you wish to learn more about:

1. How blockchain/DLT works
2. Benefits of blockchain/DLT in varying applications and sectors
3. How techniques used by certain blockchain systems in sectors like health, banking/financial, transportation and others will need to be tailored to address specific regulatory concerns
4. How changes in privacy and mandatory cyber laws and reporting regimes in the U.S. and the EU may impact the technology’s adherence to new requirements, such as General Data Protection Regulation (GDPR)
5. Including immutable ledgers and other systems that lack the ability to delete publicly accessible data

How the use of Blockchain/DLT may provide increased privacy protections in certain instances, allowing consumers to control their own data and manage identity in ways not possible before.

Please contact us at Morris+D’Angelo today.

Editorial Credit: Blockchain Uses in Transportation, Holland & Knight LLP, May 1, 2018 (www.jdsupra.com)