Research Article
BibTex RIS Cite

The Effects of the Applications of Blockchain Technology on the Logistics sector

Year 2022, Issue: 34, 148 - 152, 31.03.2022
https://doi.org/10.31590/ejosat.1077800

Abstract

Logistics is a combination of businesses involving various activities and processes which generate value by goods and services. Maintaining track of all transactions is a crucial task in logistics. Logistics 4.0 enables the optimum synchronization of activities inside corporate boundaries; if effective, logistical constraints resulting from industrial sender and receiver channels may be considerably alleviated. Blockchain paves the way for implementation of smart logistics. It served as storage for the transactions after distributed ledger technologies was implemented before the digital cryptocurrency a year ago. It is a decentralized system based on five essential principles: decentralization, P2P, transparency with privacy protection, and algorithmic logic. Some logistics companies are already employing block chain. This paper summarizes adoption of distributed ledger technology in logistics is being investigated. Furthermore, the strengths and weakness of blockchain in logistic industry were extracted from recent scientific literature for readers to overview the application of technology. It is reported that blockchain adoption provides immutability, data security, tracking, storage, dependability, and cost-effective alternatives in logistics industry. However, there are a few obstacles that prevent full-scale adaption by many logistics and transportation sectors, such as throughput, and latency constraints. Nodes aren’t monitored by centralized entity to notify security breach, so data security may be compromised. Furthermore, the blockchain is still in its infancy; there’s no single standard, theories are difficult to grasp, and even the most basic types of application need programmer assistance.Logistics is a combination of businesses involving various activities and processes which generate value by goods and services. Maintaining track of all transactions is a crucial task in logistics. Logistics 4.0 enables the optimum synchronization of activities inside corporate boundaries; if effective, logistical constraints resulting from industrial sender and receiver channels may be considerably alleviated. Blockchain paves the way for implementation of smart logistics. It served as storage for the transactions after distributed ledger technologies was implemented before the digital cryptocurrency a year ago. It is a decentralized system based on five essential principles: decentralization, P2P, transparency with privacy protection, and algorithmic logic. Some logistics companies are already employing block chain. This paper summarizes adoption of distributed ledger technology in logistics is being investigated. Furthermore, the strengths and weakness of blockchain in logistic industry were extracted from recent scientific literature for readers to overview the application of technology. It is reported that blockchain adoption provides immutability, data security, tracking, storage, dependability, and cost-effective alternatives in logistics industry. However, there are a few obstacles that prevent full-scale adaption by many logistics and transportation sectors, such as throughput, and latency constraints. Nodes aren’t monitored by centralized entity to notify security breach, so data security may be compromised. Furthermore, the blockchain is still in its infancy; there’s no single standard, theories are difficult to grasp, and even the most basic types of application need programmer assistance.

References

  • S. Nakamoto, “Bitcoin : A Peer-to-Peer Electronic Cash System,” pp. 1–9.
  • M. Iansiti and K. Lakhani, “The Truth About Blockchain:,” Harv. Bus. Rev., vol. 95, pp. 118–127, 2017.
  • C. Carter and D. Rogers, “A Framework of Sustainable Supply Chain Management: Moving Toward New Theory,” Int. J. Phys. Distrib. Logist. Manag., vol. 38, pp. 360–387, 2008, doi: 10.1108/09600030810882816.
  • N. Kshetri, “Can Blockchain Strengthen the Internet of Things?,” IT Prof., vol. 19, no. 4, pp. 68–72, 2017, doi: 10.1109/MITP.2017.3051335.
  • S. Saberi, M. Kouhizadeh, J. Sarkis, and L. Shen, “Blockchain technology and its relationships to sustainable supply chain management,” Int. J. Prod. Res., vol. 57, pp. 1–19, 2018, doi: 10.1080/00207543.2018.1533261.
  • V. Babich and G. Hilary, “Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology,” Manuf. Serv. Oper. Manag., vol. 22, 2019, doi: 10.1287/msom.2018.0752.
  • D. Y. Liao and X. Wang, “Applications of blockchain technology to logistics management in integrated casinos and entertainment,” Informatics, vol. 5, no. 4, 2018, doi: 10.3390/informatics5040044.
  • M. Friedlmaier, A. Tumasjan, and I. M. Welpe, “Disrupting Industries With Blockchain: The Industry, Venture Capital Funding, and Regional Distribution of Blockchain Ventures,” SSRN Electron. J., Sep. 2017, doi: 10.2139/SSRN.2854756.
  • A. Litke, D. Anagnostopoulos, and T. A. Varvarigou, “Blockchains for Supply Chain Management: Architectural Elements and Challenges Towards a Global Scale Deployment,” Logistics, 2019.
  • M. Rauchs and G. Hileman, Global Cryptocurrency Benchmarking Study. Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge, 2017.
  • N. Radziwill, “Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World.,” Qual. Manag. J., vol. 25, no. 1, pp. 64–65, 2018, doi: 10.1080/10686967.2018.1404373.
  • V. Buterin, V. and Griffith, “Casper the Friendly Finality Gadget,” 2017.
  • J. Roth, F. Schär, and A. Schöpfer, “The Tokenization of Assets: Using Blockchains for Equity Crowdfunding,” SSRN Electron. J., Aug. 2019, doi: 10.2139/SSRN.3443382.
  • L. Ante, “Smart Contracts on the Blockchain – A Bibliometric Analysis and Review,” SSRN Electron. J., no. 10, pp. 1–48, 2020, doi: 10.2139/ssrn.3576393.
  • S. Seebacher and R. Schüritz, “Blockchain Technology as an Enabler of Service Systems: A Structured Literature Review,” 2017, pp. 12–23, doi: 10.1007/978-3-319-56925-3_2.
  • M. Dobrovnik, D. Herold, E. Fürst, and S. Kummer, “Blockchain for and in Logistics: What to Adopt and Where to Start,” Logistics, vol. 2, p. 18, 2018, doi: 10.3390/logistics2030018.
  • D. Mao, Z. Hao, F. Wang, and H. Li, “Innovative Blockchain-Based Approach for Sustainable and Credible Environment in Food Trade: A Case Study in Shandong Province, China,” Sustainability, vol. 10, p. 3149, 2018, doi: 10.3390/su10093149.
  • V. Crosby, M.; Pattanayak, P.; Verma, S.; Kalyanaraman, “Blockchain technology: Beyond bitcoin,” Appl. Innov, vol. 2, pp. 6–10, 2016.
  • M. Pilkington, Blockchain Technology: Principles and Applications. 2016.
  • N. Hackius and M. Petersen, “Blockchain in Logistics and Supply Chain: Trick or Treat?,” 2017, doi: 10.15480/882.1444.
  • Z. Zheng, S. Xie, H.-N. Dai, X. Chen, and H. Wang, “An Overview of Blockchain Technology: Architecture, Consensus, and Future Trends,” 2017, doi: 10.1109/BigDataCongress.2017.85.
  • H. M. Kim and M. Laskowski, “Toward an ontology-driven blockchain design for supply-chain provenance,” Intell. Syst. Accounting, Financ. Manag., vol. 25, no. 1, pp. 18–27, 2018, doi: https://doi.org/10.1002/isaf.1424.
  • C.-S. Yang and T.-C. Lirn, “Revisiting the resource-based view on logistics performance in the shipping industry,” Int. J. Phys. Distrib. Logist. Manag., vol. 47, p. 0, 2017, doi: 10.1108/IJPDLM-05-2017-0184.
  • D. Herold and K.-H. Lee, “Carbon management in the logistics and transportation sector: an overview and new research directions,” Carbon Manag., vol. 8, pp. 1–19, 2017, doi: 10.1080/17583004.2017.1283923.
  • D. Herold, “Has Carbon Disclosure Become More Transparent in the Global Logistics Industry? An Investigation of Corporate Carbon Disclosure Strategies Between 2010 and 2015,” Logistics, vol. 2, p. 13, 2018, doi: 10.3390/logistics2030013.
  • D. Herold and K.-H. Lee, “Carbon Disclosure Strategies in the Global Logistics Industry: Similarities and Differences in Carbon Measurement and Reporting,” in Pathways to a Sustainable Economy: Bridging the Gap between Paris Climate Change Commitments and Net Zero Emissions, 2018, pp. 87–101.
  • D. Herold, “The Influence of Institutional and Stakeholder Pressures on Carbon Disclosure Strategies: An Investigation in the Global Logistics Industry Thesis Type,” 2018.
  • M. Giancaspro, “Is a ‘smart contract’ really a smart idea? Insights from a legal perspective,” Comput. Law Secur. Rev., vol. 33, no. 6, pp. 825–835, 2017, doi: https://doi.org/10.1016/j.clsr.2017.05.007.
  • D. E. O’Leary, “Configuring blockchain architectures for transaction information in blockchain consortiums: The case of accounting and supply chain systems,” Intell. Syst. Accounting, Financ. Manag., vol. 24, no. 4, pp. 138–147, 2017, doi: https://doi.org/10.1002/isaf.1417.
  • D. Campanella, The Impact of Blockchain Technology on Capital Markets. A Transformation of our Financial System? 2018.
  • K. Francisco and R. Swanson, “The Supply Chain Has No Clothes: Technology Adoption of Blockchain for Supply Chain Transparency,” Logistics, vol. 2, p. 2, 2018, doi: 10.3390/logistics2010002.
  • E. Tijan, S. Aksentijević, K. Ivanić, and M. Jardas, “Blockchain technology implementation in logistics,” Sustain., vol. 11, no. 4, 2019, doi: 10.3390/su11041185.
  • M. Montecchi, K. Plangger, and M. Etter, “It’s real, trust me! Establishing supply chain provenance using blockchain,” Bus. Horiz., vol. 62, 2019, doi: 10.1016/j.bushor.2019.01.008.
  • M. Buitenhek, “Blockchain is not the thing. It’s the thing that enables the thing.,” Gobal head Trans. Serv. ING, 2017.
  • A. Hughes, A. Park, J. Kietzmann, and C. Archer-Brown, “Beyond Bitcoin: What blockchain and distributed ledger technologies mean for firms,” Bus. Horiz., vol. 62, no. 3, pp. 273–281, 2019, doi: https://doi.org/10.1016/j.bushor.2019.01.002.
  • S. Ruoti, B. E. N. Kaiser, A. Yerukhimovich, J. Clark, and R. Cunningham, “What Is It Good for?,” no. october 2019, pp. 1–28, 2008.
  • V. Gatteschi, F. Lamberti, C. G. Demartini, C. Pranteda, and V. Santamaria, “Blockchain and Smart Contracts for Insurance: Is the Technology Mature Enough?,” Futur. Internet, vol. 10, p. 20, 2018.
  • J. Zhao, S. Fan, and J. Yan, “Overview of business innovations and research opportunities in blockchain and introduction to the special issue,” Financ. Innov., vol. 2, 2016, doi: 10.1186/s40854-016-0049-2.

Blokzinciri Teknolojisi Uygulamalarının Lojistik Sektörüne Etkileri

Year 2022, Issue: 34, 148 - 152, 31.03.2022
https://doi.org/10.31590/ejosat.1077800

Abstract

Lojistik, ürün ve hizmetlerle değer yaratan çeşitli faaliyetleri ve süreçleri içeren işletmelerin bir kombinasyonudur. Yapılan tüm işlemlerin kaydını tutmak lojistikte çok önemli bir işlemdir. Lojistik 4.0, kurumsal sınırlar içindeki optimum senkronizasyonunu sağlar; eğer etkiliyse endüstriyel gönderici ve alıcı kanallarından kaynaklanan lojistik kısıtlamalar önemli ölçüde hafifletilebilir. Blok zincir teknolojisi, akıllı lojistiğin yolunu açmaktadır ve bir yıl önce dijital kripto para biriminden önce dağıtılmış defter teknolojilerinin uygulanmasından sonra işlemler için depolama görevi görmüştür. Beş temel ilkeye dayanan bir sistemdir. Bunlar merkezi olmayan, uçtan uca, gizlilik korumalı, şeffaflık ve algoritmik mantıkdır. Bazı lojistik firmaları hali hazırda blok zincir teknolojisini kullanmaktadır. Bu makale, araştırılmakta olan lojistikte dağıtık defter teknolojisinin benimsenmesini özetlemektedir. Ayrıca lojistik endüstrisindeki blok zincir teknolojisinin güçlü ve zayıf yönleri araştırmacıların teknolojinin uygulamasını gözden geçirmesi için güncel bilimsel literatürden yararlanılmıştır. Blok zincir teknolojisinin benimsenmesinin lojistik sektöründe değişmezlik, veri güvenliği, izlenebilirlik depolama güvenilirlik ve uygun maliyetli alternatifler sağladığı bilinmektedir. Ancak verimlilik ve gecikme kısıtlamaları gibi bir çok lojistik ve ulaşım sektörü tarafından tam ölçekli uyarlamayı engelleyen birkaç engel vardır. Düğümler güvenlik ihlalini bildirmek için merkezi varlık tarafından izlenemez, bu nedenle veri güvenliği tehlikeye girebilir. Ayrıca blok zincir teknolojisi halen başlangıç aşamasındadır; tek bir standart yoktur, teorileri kavramak zordur ve en temel uygulama türleri bile uzman yardımına ihtiyaç duyulmaktadır.

References

  • S. Nakamoto, “Bitcoin : A Peer-to-Peer Electronic Cash System,” pp. 1–9.
  • M. Iansiti and K. Lakhani, “The Truth About Blockchain:,” Harv. Bus. Rev., vol. 95, pp. 118–127, 2017.
  • C. Carter and D. Rogers, “A Framework of Sustainable Supply Chain Management: Moving Toward New Theory,” Int. J. Phys. Distrib. Logist. Manag., vol. 38, pp. 360–387, 2008, doi: 10.1108/09600030810882816.
  • N. Kshetri, “Can Blockchain Strengthen the Internet of Things?,” IT Prof., vol. 19, no. 4, pp. 68–72, 2017, doi: 10.1109/MITP.2017.3051335.
  • S. Saberi, M. Kouhizadeh, J. Sarkis, and L. Shen, “Blockchain technology and its relationships to sustainable supply chain management,” Int. J. Prod. Res., vol. 57, pp. 1–19, 2018, doi: 10.1080/00207543.2018.1533261.
  • V. Babich and G. Hilary, “Distributed Ledgers and Operations: What Operations Management Researchers Should Know About Blockchain Technology,” Manuf. Serv. Oper. Manag., vol. 22, 2019, doi: 10.1287/msom.2018.0752.
  • D. Y. Liao and X. Wang, “Applications of blockchain technology to logistics management in integrated casinos and entertainment,” Informatics, vol. 5, no. 4, 2018, doi: 10.3390/informatics5040044.
  • M. Friedlmaier, A. Tumasjan, and I. M. Welpe, “Disrupting Industries With Blockchain: The Industry, Venture Capital Funding, and Regional Distribution of Blockchain Ventures,” SSRN Electron. J., Sep. 2017, doi: 10.2139/SSRN.2854756.
  • A. Litke, D. Anagnostopoulos, and T. A. Varvarigou, “Blockchains for Supply Chain Management: Architectural Elements and Challenges Towards a Global Scale Deployment,” Logistics, 2019.
  • M. Rauchs and G. Hileman, Global Cryptocurrency Benchmarking Study. Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge, 2017.
  • N. Radziwill, “Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World.,” Qual. Manag. J., vol. 25, no. 1, pp. 64–65, 2018, doi: 10.1080/10686967.2018.1404373.
  • V. Buterin, V. and Griffith, “Casper the Friendly Finality Gadget,” 2017.
  • J. Roth, F. Schär, and A. Schöpfer, “The Tokenization of Assets: Using Blockchains for Equity Crowdfunding,” SSRN Electron. J., Aug. 2019, doi: 10.2139/SSRN.3443382.
  • L. Ante, “Smart Contracts on the Blockchain – A Bibliometric Analysis and Review,” SSRN Electron. J., no. 10, pp. 1–48, 2020, doi: 10.2139/ssrn.3576393.
  • S. Seebacher and R. Schüritz, “Blockchain Technology as an Enabler of Service Systems: A Structured Literature Review,” 2017, pp. 12–23, doi: 10.1007/978-3-319-56925-3_2.
  • M. Dobrovnik, D. Herold, E. Fürst, and S. Kummer, “Blockchain for and in Logistics: What to Adopt and Where to Start,” Logistics, vol. 2, p. 18, 2018, doi: 10.3390/logistics2030018.
  • D. Mao, Z. Hao, F. Wang, and H. Li, “Innovative Blockchain-Based Approach for Sustainable and Credible Environment in Food Trade: A Case Study in Shandong Province, China,” Sustainability, vol. 10, p. 3149, 2018, doi: 10.3390/su10093149.
  • V. Crosby, M.; Pattanayak, P.; Verma, S.; Kalyanaraman, “Blockchain technology: Beyond bitcoin,” Appl. Innov, vol. 2, pp. 6–10, 2016.
  • M. Pilkington, Blockchain Technology: Principles and Applications. 2016.
  • N. Hackius and M. Petersen, “Blockchain in Logistics and Supply Chain: Trick or Treat?,” 2017, doi: 10.15480/882.1444.
  • Z. Zheng, S. Xie, H.-N. Dai, X. Chen, and H. Wang, “An Overview of Blockchain Technology: Architecture, Consensus, and Future Trends,” 2017, doi: 10.1109/BigDataCongress.2017.85.
  • H. M. Kim and M. Laskowski, “Toward an ontology-driven blockchain design for supply-chain provenance,” Intell. Syst. Accounting, Financ. Manag., vol. 25, no. 1, pp. 18–27, 2018, doi: https://doi.org/10.1002/isaf.1424.
  • C.-S. Yang and T.-C. Lirn, “Revisiting the resource-based view on logistics performance in the shipping industry,” Int. J. Phys. Distrib. Logist. Manag., vol. 47, p. 0, 2017, doi: 10.1108/IJPDLM-05-2017-0184.
  • D. Herold and K.-H. Lee, “Carbon management in the logistics and transportation sector: an overview and new research directions,” Carbon Manag., vol. 8, pp. 1–19, 2017, doi: 10.1080/17583004.2017.1283923.
  • D. Herold, “Has Carbon Disclosure Become More Transparent in the Global Logistics Industry? An Investigation of Corporate Carbon Disclosure Strategies Between 2010 and 2015,” Logistics, vol. 2, p. 13, 2018, doi: 10.3390/logistics2030013.
  • D. Herold and K.-H. Lee, “Carbon Disclosure Strategies in the Global Logistics Industry: Similarities and Differences in Carbon Measurement and Reporting,” in Pathways to a Sustainable Economy: Bridging the Gap between Paris Climate Change Commitments and Net Zero Emissions, 2018, pp. 87–101.
  • D. Herold, “The Influence of Institutional and Stakeholder Pressures on Carbon Disclosure Strategies: An Investigation in the Global Logistics Industry Thesis Type,” 2018.
  • M. Giancaspro, “Is a ‘smart contract’ really a smart idea? Insights from a legal perspective,” Comput. Law Secur. Rev., vol. 33, no. 6, pp. 825–835, 2017, doi: https://doi.org/10.1016/j.clsr.2017.05.007.
  • D. E. O’Leary, “Configuring blockchain architectures for transaction information in blockchain consortiums: The case of accounting and supply chain systems,” Intell. Syst. Accounting, Financ. Manag., vol. 24, no. 4, pp. 138–147, 2017, doi: https://doi.org/10.1002/isaf.1417.
  • D. Campanella, The Impact of Blockchain Technology on Capital Markets. A Transformation of our Financial System? 2018.
  • K. Francisco and R. Swanson, “The Supply Chain Has No Clothes: Technology Adoption of Blockchain for Supply Chain Transparency,” Logistics, vol. 2, p. 2, 2018, doi: 10.3390/logistics2010002.
  • E. Tijan, S. Aksentijević, K. Ivanić, and M. Jardas, “Blockchain technology implementation in logistics,” Sustain., vol. 11, no. 4, 2019, doi: 10.3390/su11041185.
  • M. Montecchi, K. Plangger, and M. Etter, “It’s real, trust me! Establishing supply chain provenance using blockchain,” Bus. Horiz., vol. 62, 2019, doi: 10.1016/j.bushor.2019.01.008.
  • M. Buitenhek, “Blockchain is not the thing. It’s the thing that enables the thing.,” Gobal head Trans. Serv. ING, 2017.
  • A. Hughes, A. Park, J. Kietzmann, and C. Archer-Brown, “Beyond Bitcoin: What blockchain and distributed ledger technologies mean for firms,” Bus. Horiz., vol. 62, no. 3, pp. 273–281, 2019, doi: https://doi.org/10.1016/j.bushor.2019.01.002.
  • S. Ruoti, B. E. N. Kaiser, A. Yerukhimovich, J. Clark, and R. Cunningham, “What Is It Good for?,” no. october 2019, pp. 1–28, 2008.
  • V. Gatteschi, F. Lamberti, C. G. Demartini, C. Pranteda, and V. Santamaria, “Blockchain and Smart Contracts for Insurance: Is the Technology Mature Enough?,” Futur. Internet, vol. 10, p. 20, 2018.
  • J. Zhao, S. Fan, and J. Yan, “Overview of business innovations and research opportunities in blockchain and introduction to the special issue,” Financ. Innov., vol. 2, 2016, doi: 10.1186/s40854-016-0049-2.
There are 38 citations in total.

Details

Primary Language English
Subjects Engineering
Journal Section Articles
Authors

Batin Latif Aylak 0000-0003-0067-1835

Early Pub Date January 30, 2022
Publication Date March 31, 2022
Published in Issue Year 2022 Issue: 34

Cite

APA Aylak, B. L. (2022). The Effects of the Applications of Blockchain Technology on the Logistics sector. Avrupa Bilim Ve Teknoloji Dergisi(34), 148-152. https://doi.org/10.31590/ejosat.1077800