Samsung SDS to use blockchain for logisticsSamsung SDS, an information technology unit of Korea’s leading conglomerate Samsung, will apply blockchain technology to logistics.
SDS said Wednesday that it joined a consortium with local logistics and IT service companies, as well as government agencies, to implement blockchain technology into shipping and logistics. Partners in the consortium include Korea Customs Service, the Ministry of Oceans and Fisheries, Hyundai Merchant Marine and IBM Korea.
Blockchain is a technology that verifies and encrypts transactions to store them in distributed ledgers. It is best known for its application to digital currencies such as Bitcoin. The system ensures transparency and security while slashing costs of storage as it does not require expensive servers, the company said. In April, SDS developed “Nexledger,” a blockchain platform equipped with biometric certification solution Nexsign.
The consortium will begin developing necessary technology this month for the pilot project. The system will be applied in the logistics process by the end of this year to help the companies and the government monitor import and export activities.
“If the pilot project is successful, it will eliminate the necessity of submitting documents to the customs such as the bill of lading,” said a spokesperson from Korea Customs Service. “We expect simplifying the customs process will speed up the flow of logistics and cut related costs.”
Once blockchain is fully adopted into logistics, everything from production to storage and shipping will be recorded in detail, rendering it impossible to falsely advertise, or change production and expiration dates of products. The Internet of Things network will also enable real-time tracking of the location of the containers.
Choi Sang-hee, a director at Korea Maritime Institute which is also a member of the consortium, said, “[Applying blockchain technology into logistics] will eliminate any inefficiency in logistics… and will be an engine behind the growth of [Korean] logistics industry.”
BY CHOI HYUNG-JO [email@example.com]