Blockchain and the Future of Global Trade: GSBN’s Ambitious Plans

The termination of Danish logistics firm Maersk’s blockchain-based supply chain platform last year may have dampened the spirits of some industry builders, but Global Shipping Business Network (GSBN) is still bullish on blockchain. The Hong Kong-based non-profit consortium has developed one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. GSBN’s blockchain-based shipping platform operates on a permissioned blockchain with strong data governance, allowing only authorized parties to contribute and consume shipping-related data. Despite major industry players like Maersk giving up on similar projects, GSBN CEO Bertrand Chen is confident that blockchain is yet to catch on in the industry, but its adoption may take another decade.

Blockchain and the Future of Global Trade: GSBN’s Ambitious Plans

Blockchain has been heralded as a transformative technology with the potential to revolutionize the way global trade operates. However, the termination of Maersk’s blockchain-based supply chain platform last year may have led some to believe that blockchain’s potential in the industry may be overhyped. Nevertheless, Hong Kong-based Global Shipping Business Network (GSBN), a non-profit consortium focused on blockchain trade applications, is still bullish on the technology as a crucial logistics tool in the long term.

GSBN’s Platform

According to a report by The South China Morning Post, GSBN currently operates one of the world’s largest platforms as an alternative to Maersk’s TradeLens tool. The platform is based on a permissioned blockchain with strong data governance, allowing only authorized parties to contribute and consume shipping-related data. Since launching its blockchain-based shipping platform in 2021, GSBN has tapped major shipping partners like Cosco, OOCL, and Hapag-Lloyd. The organization has also reached partnerships with terminal operators like Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports.

Among the members, only German Hapag-Lloyd and Singaporean PSA International are not based in mainland China or Hong Kong.

Blockchain’s Potential

Despite major industry firms like Maersk terminating similar projects, GSBN CEO Bertrand Chen is confident that blockchain is yet to catch on in the industry, but its adoption may take another decade. The COVID-19 pandemic has highlighted the need for digitization and automation in the logistics industry, and Chen believes that blockchain has the potential to help the industry transform in response to supply chain issues triggered by the pandemic.

Chen also stated that China was taking the lead in blockchain logistics because the country has been pouring money into the industry. He acknowledged that many local blockchain solutions have been highly specific to China, but noted that the country’s investment in blockchain development would definitely benefit GSBN by generating more potential partners for the firm.

GSBN’s Global Ambitions

GSBN CEO Bertrand Chen also noted that the organization has global ambitions and is working to attract more European shipping lines. The nonprofit even hopes to onboard Maersk one day, but admits that such a scenario “may be slightly challenging,” Chen noted.

Hong Kong has been increasingly emerging as a major Web3 and cryptocurrency hub over the past few months, with the local government taking action to adopt clear industry regulations. Despite a blanket ban on crypto in China, some Chinese government-related firms have reportedly been growing interested in crypto investment, with state-owned firms like CPIC launching crypto-related funds in early April.

Conclusion

Despite Maersk’s termination of their blockchain-based platform, the logistics industry is still exploring the potential of blockchain in global trade. Global Shipping Business Network (GSBN), a non-profit consortium, has emerged as a leader in blockchain trade applications. The platform, which utilizes a permissioned blockchain, has already partnered with major shipping partners and terminal operators. According to GSBN CEO Bertrand Chen, blockchain technology has the potential to transform the industry in response to supply issues triggered by events like COVID-19. China is leading the way in blockchain logistics, and the future looks bright for blockchain in global trade.

FAQs

1. What is GSBN, and how is it using blockchain technology in global trade?

GSBN is a non-profit consortium focused on blockchain trade applications, offering an alternative to Maersk’s TradeLens tool with a permissioned blockchain platform that ensures strong data governance. The platform allows authorized parties to contribute and consume shipping-related data.

2. Which shipping partners and terminal operators has GSBN attracted so far?

GSBN has tapped major shipping partners like Cosco, OOCL and Hapag-Lloyd. The organization has also reached partnerships with terminal operators like Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group and Cosco Shipping Ports.

3. What is the potential of blockchain technology in the logistics industry?

Blockchain technology has the potential to transform the logistics industry, especially in response to supply issues triggered by events such as COVID-19. By offering a secure and decentralized way of managing supply chain data, blockchain can enhance transparency, efficiency, and accountability in the industry.

4. What is the role of China in blockchain logistics, and how does it benefit GSBN?

China has been taking the lead in blockchain logistics by investing heavily in the industry. This investment has generated a range of local blockchain solutions specific to China. GSBN is benefiting from China’s investment by attracting more potential partners for the firm.

5. Will blockchain become a standard tool for logistics and supply chain management in the future?

As the logistics industry continues to digitize, it’s only a matter of time before blockchain becomes a standard tool for logistics and supply chain management. The potential benefits of blockchain technology, including enhanced transparency, efficiency, and accountability, make it a valuable addition to the industry.

For more atricles visit: Cryptotechnews24

Crypto Tech News 24