Digital currency technology has become very popular in recent years, and if you are familiar with the digital currency market and Cryptocurrencies such as Bitcoin, you have probably heard of the Chinese blockchain many times. Since this technology is the basis of digital currencies, it is important to know what the Chinese blockchain is and how it works. Please follow the digital currency signal till the end of this article.

Blockchain technology

Blockchain technology
Blockchain is a combination of the words Block and Chain

Technology that eliminates banks and financial institutions. The word Blockchain is a combination of the words Block and Chain.  This technology is a chain of blocks.

In each block, any information can be recorded;  From the crimes of one person to the details of the transactions of a monetary network such as Bitcoin.

Blockchain is a network that uses decentralized and encrypted technologies to store the history of all transactions with digital assets such as Bitcoin in a general ledger that cannot be changed.  All registration information is transparently available to users.

The blockchain network is what made it possible to remove banks and financial institutions from digital asset transactions and ensure the security of digital currencies. An issue that makes digital assets very popular.  Using a digital currency calculator is becoming a daily habit for many people.

In the definition of blockchain, we should say: That blockchain technology is a structure that trades records (blocks) as a database of data called “chains” in a network of “nodes” that are (peer-to-peer) connected and stored.  The whole set is called a “digital ledger.”  Is it a bit complicated?  Let’s explain it simpler.

Blockchain in simple language; a network of immutable data

Simply put, the Chinese blockchain is a kind of information and reporting system.  The difference with other systems is that the information stored on this type of system is shared among all members of a network.  With the use of data encryption and distribution, the possibility of hacking, deleting, and manipulating recorded information is virtually eliminated.

The concept of the Chinese blockchain was first introduced with the advent of bitcoin, and the king of digital currencies used this strategy to store information about users’ assets.

To better understand the Chinese block, consider the following example:

In a group of 100 people, I pick up an information sheet and everyone takes a picture of it with their mobile phone.  Now if I delete that information, or change it, it is no longer acceptable to that collection, because they have a copy of the original unless I take everyone’s mobile and delete it.

The group we talked about could be the millions we see in Bitcoin and Atrium and other Chinese blockchain digital currencies, or it can be used privately for a specific group.

Blockchains can be used privately and for specific purposes in an institution or organization, also called enterprise blockchains.  Of course, according to many experts, organizational blockchains can not achieve the main goal of this technology, which is decentralization.

To put it simply, what is a Chinese blockchain, we have to think of it as a long chain of data.  Data includes transactions that take place on the network.  Transaction records are stored in packages called blocks.  Each block is added to the end of the chain after completing and verifying its information.  This chain of blocks, called the china block, is stored in nodes or network nodes.  Nodes are computers that are responsible for storing all network information and in which a copy of all data is stored.

Each of the blocks in the China block consists of digital pieces of information that consist of three sections:

  1. Information about your transactions: for example, the date, time, and amount of your last bitcoin purchase.
  2. Information of participants in transactions: Use a digital signature instead of your real name.  Your purchase will be recorded without any personally identifiable information using a unique “digital signature”.
  3. Each block has different information from the other blocks: Just as each of us has a fingerprint so that we can distinguish ourselves from each other, each block stores a unique code called a hash.  This allows us to distinguish it from any other block.  In this way, the blocks related to two transactions with the same details are separable due to their unique codes.

How does the China block work?

How does the China block work?
Blockchain stores all the information

Let’s take a look at bitcoin transactions to better understand how the Chinese blockchain works.  Blockchain stores all the information and details of transactions made with this digital currency.  If a user wants to trade a bitcoin more than twice (ie scams), it is blocked.

Each block is added to the China block when it stores new data.  This type comes with a chain of several blocks that are interconnected.

The general title of blockchain is that for a block to be added to a blockchain, four things must happen:

  1. A transaction must be made.
  2. After purchase, your transaction must be confirmed.  This is done by computer networks, which are more than thousands of computers and are spread all over the world.  This network checks through the computer that the transaction is done according to your order.
  3. Blocks each transaction.  Once your transaction is confirmed, the information will be recorded in a dedicated block.  There, your transaction information is placed next to countless similar transactions.
  4. Each block must be given a hash (code).  Once all transactions in a block have been verified, that block must be given a unique identification code called a hash.  After getting a dedicated hash, that block is added to the Chinese block.

Why is the China block important?

China blockchain technology and its applications are unparalleled and can be used in almost anything that is transferable, including the transfer of money, goods, or property.

The Chinese block is the biggest deterrent to fraudsters because every transaction is recorded in full detail in the general ledger.  All parties to the transaction can access these details.

Who is the China Block available for?

Anyone with access to the Internet anywhere in the world can use it in their transactions.

With a lot of research, we have found that the use of this technology is increasing in the next decade. Interest in the field of blockchain is increasing in the world.  Proving blockchain university courses, holding various conferences and seminars in this field, and using banks and financial institutions, insurance companies, and technology companies as a tool to reduce costs, reduce system errors and increase the quality of their services are proof of this claim.

This volume of blockchain information in a network of computers makes it more difficult to manipulate information.  Because a hacker needs to manipulate any version of the Chinese blockchain on the network, which is almost impossible with all the existing versions.

On the other hand, looking at the Bitcoin blockchain, you will see that it is practically impossible to identify users.  Although the transactions recorded in the blockchain are not completely anonymous, users’ personal information is limited to their digital signature or username.  However, the question that arises here is how the China Bloc can ensure the security of users and trust it?

What is a Digital Ledger and why is it secure?

What is a Digital Ledger and why is it secure?
Blockchain is a large digital general ledger

Blockchain is a large digital general ledger in which network transaction information is accurately stored.  Any information to enter the network must be verified by a digital signature and verified by other network members. No one owns the China Blockchain and everyone can access all the information registered in the network, but they cannot change the information.

Because all network information is stored in each node, to change it, all copies in all nodes must be changed.  In addition, the structure of the blockchain is such that changing the information of a block will make it invalid.

China Blockchain methods to build security and trust of users:

New blocks are always added linearly and in chronological order.  So new blocks are always added to the end of the Chinese block.  Each block in the chain has a position called height.

Once a block is added to the end of the Chinese block, the job is done, and it will be very difficult to return and manipulate the block to change its contents.  Because each block is marked with its hash, as well as the hash of the previous block.

Hash codes are generated through a mathematical function that converts digital information into a string of numbers and letters.  If this information is manipulated and edited in any way, the hash code will also change.  Suppose a hacker tries to manipulate your transaction information so that you have to repay your purchase price.

The hash block changes as soon as your transaction information is edited;  The next block in the chain still contains the old hash, and the hacker will have to update it as well;  And then the next block to the end is like this, recalculating all these hashes requires enormous and unimaginable computing power.  In other words, once a block is added to a Chinese block, it will be very difficult to edit and impossible to delete.

What are the problems and limitations of the China Block?

Specialized terms:

China Blockchain technology has a completely new vocabulary due to its emergence.  Fortunately, over the years, numerous efforts have been made to provide complete and easy dictionaries, definitions, and lists.

Network breadth:

There must be a large network of users to get the full benefit of blockchain.  And there is still debate as to whether this extent is a significant challenge to some of the Chinese blockchain projects.

Transaction costs, and network speed:

Bitcoin exchanges, which were declared almost free in the first few years of their existence, now have significant costs.

Inevitable security flaws:

There is a significant security flaw in Bitcoin and other blockchains.  If more than half of the computers that act as nodes in the network lie (note that more than half of the computers), the lie becomes true.

This flaw is called a “51% attack” and was referred to by Satoshi Nakamoto when launching Bitcoin.  For this reason, bitcoin mining pools are closely monitored by the collector to ensure that no one unknowingly provides such intrusion into the network.

In the following, we will become more familiar with blockchain technology and explain with examples why buying Tetra today has more fans than direct dollar trading between countries.

Example of a blockchain network and the reason for its popularity

Example of a blockchain network and the reason for its popularity
transfer money through a banking network

Suppose you want to transfer money through a banking network.  The bank checks your account and destination, transfers money, receives its transaction, and updates its source and destination account.  But all this is done by a system that is controlled by the bank.  If someone breaks into the banking system, they can transfer money to the account of their friend instead of depositing it.  This happens thousands of times a year around the world!

In a blockchain system, everything is transparent, your information and your friend’s information are checked and verified by everyone on the network.  Algorithms, hashes, and miners ensure that your digital assets are properly transferred.  After the transaction, no one has the power to change the information and everyone in the network can see the transaction information.  On the other hand, the transaction fee is much lower than the bank fee.

What components does the blockchain network consist of and how does it work?

Blockchain consists of three basic and important concepts.  Blocks, knots, and miners.  In the following, we will examine each of these concepts.

What is a block?  Data packets in the blockchain network. Each network consists of a large number of blocks, each block consists of 3 basic parts:

  • Data: Block information that includes transactions performed in the block.
  • Nonce: Nonce is a set of 32-bit numbers that are randomly generated when creating a block and then used as a hash header in the block.
  • Hash: Hash is a 256-bit number that is placed next to Nonce.  The hash starts with a large number of zeros.

When the first block is made of the blockchain (Genesis block), Nonce is randomly generated and an encrypted hash is created for the block.  The data in the signed block is considered and permanently associated with nonce and hash unless extracted.

What is a Miner?  What role do they play in the blockchain network?

What is a Miner?  What role do they play in the blockchain network?
Miners are responsible for creating network blocks

Miners are responsible for creating network blocks in a process called mining.  In a blockchain network, each block has its nonce and hash.  In addition, the previous hash block is stored in the new block.  Therefore, the process of extracting or building blocks is not a simple task.  Especially in a large network that stores millions of blocks.  Miners use powerful software and hardware to solve complex math problems to build a nonce that is capable of accepting hashes.

Why does the mining process require so much energy?  What is Proof of work?

As mentioned, Nonce is 32-bit. While hashes are generated in 256-bit format, connecting a 32-bit nonce to a 256-bit hash is very complicated, and billions of different modes must be calculated so that miners can finally find the right combination.  When the right nonce is found, the block is ready to be added to the grid.  When a block is successfully added to the network, all network nodes approve it, and Miner receives a network reward (such as Bitcoin) for his efforts.

The whole operation is called Proof of work so that everyone on the network can be sure that the block information is correct.  In this way, miners can earn good money and bitcoins.

What are blockchain nodes?

One of the most essential features of a blockchain network is that it is distributed or decentralized. No single computer, organization, or organization can be the entire network. Instead, the network is a distributed general ledger that is protected by interconnected nodes in the network.  A node is any type of electronic device that can store a copy of the entire blockchain network and enable network operation.

The importance of the presence of nodes in the network and their effect on the transparency of digital currencies

Each new block that enters the network is approved by the nodes.  The transparency of the blockchain allows all its information to be easily viewed and viewed.  This transparency is due to the presence of nodes.  All nodes are connected peer-to-peer.

This peer-to-peer connection allows them all to store the same information. Data storage using a strong control system helps maintain network integrity and build trust among users.

Although this may have slowed down the network a bit at first, newer networks have solved this problem as well.  Tron, for example, has one of the fastest blockchains.

Blockchain and its comparison with the banking system; why is blockchain better than the banking system?

Blockchain and its comparison with the banking system; why is blockchain better than the banking system?
There are several major problems with the banking system

There are several major problems with the banking system that you may encounter during your transaction.  The banking system deducts a significant fee from your account when you send money to others.  This system has access to all account information and can change all accounts.  The centrality of the system means that if the information in the bank is lost, all the information in the accounts will also be lost.

Finally, banking systems control the transfer of money and, for example, deprive people like us Iranians of many financial transactions around the world.

The Chinese block has many advantages over the bank:

  • Ability to perform the transaction anonymously
  • Pay a small fee
  • The distributed system is almost unhackable
  • Transparency
  • No need for intermediaries
  • Very high network security
  • Unchangeable
  • Indestructible
  • No one is in control
  • Ability to move assets from anywhere
  • High speed of transactions

Blockchain applications, from voter authentication to the lending system!

As we have said, bitcoin and decentralized digital currencies are the most important and successful applications of Chinese blockchain technology.  For example, in Bitcoin, using this technology, the possibility of fraud, double spending, and return of transactions is eliminated.

But this technology can have many other applications besides digital currencies, and it can be used wherever there is a need for storage space and eliminates the need for trust.

For example, electronic and fraud-free elections could be one of the applications of the Chinese bloc.  Using this innovation can greatly reduce the risk of electoral fraud and the need for manpower.

Another example,

we can mention the use of the Chinese block in the supply and transportation chain.  Factories and manufacturing companies can record their goods and shipping information from the beginning to reach the customer in the database, which ensures the authenticity of the goods and the quality of raw materials for the customer.

With this technology, just like a society or an organization, it is possible to create a kind of governance in a system so that everyone can share in the advancement of that system in proportion to their shares and powers.

This technology can also be used to convert assets into digital tokens and present them as transferable assets.  For example, the value of a home can be converted into thousands of digital tokens and sold at the applicants’ budgets so that many people (even from other countries) can invest in that home.

Of course, the Chinese blockchain is not yet widely used in the real world, and although this technology is decentralized, in many cases we still have to rely on centralized institutions and organizations.  But with the provision of the necessary infrastructure, such as the development of artificial intelligence or the Internet of Things, we can hope for more applications of this technology. Blockchain has many capabilities, of which the transfer of assets is just one.

In the following, we will get acquainted with the applications of blockchain.

  • voting
  • Transfer of digital currencies
  • Authentication
  • Notary
  • Information storage
  • Account management
  • Protection of intellectual property and copyright
  • A platform for decentralized applications (such as Atrium)

New blockchains such as China have also provided links to advanced banking features such as lending on encrypted networks.  The development of such networks will greatly reduce the need for government financial and banking systems.

Is Blockchain Safe?

Is Blockchain Safe?
hash can secure a complete chain of blocks.

Blockchain of several security layers such as private keys, public keys, various algorithms, Proof of Work, hash, Peer-to-Peer system, and… which together create a very secure and stable network.  For example, a hash alone can secure a complete chain of blocks.

However, in theory, the blockchain can only be changed if the information of more than 51% of the network nodes can be changed.  This practically requires very, very high hashing power.  There have been several major scams in recent years, mostly due to the use of unreliable exchanges.

China block from a technical point of view

Think of the China Blockchain as an archive where information is stored.  Maybe a Chinese block is not much different from what you are most familiar with.  Like Wikipedia.

Using a blockchain, many people can enter different records into one type of information archive, and users can also control how information is recorded and updated.

The structure and type of work of this technology are not very different from the type of work of the Wikipedia website.  Articles on the Wikipedia online encyclopedia website are also not the product of an author.  Anyone can post content on this site by Wikipedia rules.  So in Wikipedia, not just one person controls the information.

However, an in-depth study reveals the differences that make China’s Blockchain technology unique.  While both run on distributed networks (Internet), Wikipedia on the World Wide Web (WWW) is designed using a “client-server” model.

This means that in Wikipedia, data is stored on a centralized server.  Even if users do not want to, one or more people have control over all the data and can modify or delete it completely.


In Wikipedia, a user (client) can modify all or some of the Wikipedia entries stored on a centralized server, with permissions assigned to them by the system.

Each time a user accesses the Wikipedia page, they receive an updated version of an article in the database (master copy).  But the main difference is that control of the database remains with the administrators of Wikipedia, and control of access and permissions is maintained by a central authority.  In a way, Wikipedia administrators can delete an article at any time.

But in Blockchain, the owners of the database information are the network users, and the information registered on it is not deleted.

What is the block height of a Chinese block?

Ever heard of the major developers of a digital currency asking a user to update their wallet before a certain block height during a hard fork or a minor upgrade? The developer must first announce the height of the block at which the changes are to be made.

What is Block height?

To explore this concept, consider blockchain bitcoin:
The first block, called the genesis block, was created with the advent of bitcoin. Every 10 minutes since the creation of the Genesis Block, a new block is added to the Bitcoin blockchain.

The speed of creating new blocks may be a little faster or less than 10 minutes, but the process of creating new blocks and connecting them is endless. There is no limit to the number of blocks in China. Even after all the initial coins have been mined, miners build new blocks at regular intervals while people are trading bitcoins.
The height of a block (Block Height) is the number of blocks that already exist in the chain in that chain. Hence the height of the Genesis block is 0 because no block has been placed before it.

What is Block height?
The first block called the genesis block

As you can see in the figure above, the blocks are numbered sequentially in a blockchain. Note that several blocks can be the same height. This could be due to forks that occur in the network. The height of a blockchain is equal to the height of the block that is the highest. The highest block in a Chinese block is the newest block.
Highest block height = China block height

Number of blocks in the longest chain = height of the Chinese block

What is the use of block height?

Block height is a good variable to indicate the time and maturity and longevity of a Chinese block grid. For example, when we say the height of a bitcoin blockchain is 545,125, the time required to create a block is 10 minutes. We can calculate the lifetime of the china block by multiplying these two numbers together. Developers determine the fork time and network updates by considering the block height and the time required to form a block.

This number is not written inside a block and only nodes that have access to the network see this number. However, each block includes a timestamp to ensure the integrity of the Chinese block. To understand when a transaction takes place, look at the height of the block where that transaction is located. You can see the timestamp and other transaction information. By checking the height of the block, you can be sure of the accuracy and security of the transaction.

What is scalability in the Chinese block?

The issue of scalability or non-scalability is one of the main obstacles to the adoption of China Blockchain technology. But why is it difficult to solve?

Bitcoin in its current form can handle about 7 transactions per second. Atrium, which most businesses are interested in, can handle up to 20 transactions per second. This level of operational capacity is unacceptably low for most job plans.

If you’ve just started researching the Chinese blockchain, you will find that there is a “TPS war” between competing projects, and many of them claim to be faster. If a digital currency like Ripple can handle thousands of transactions (which it is), wouldn’t it be better for everyone to turn to XRP and Ripple Network?


Consider Kevin and let me explain.

What is scalability in the Chinese block?
Kevin’s job is to move furniture and move between houses.

Kevin’s job is to move furniture and move between houses. He owns a small but reputable company that also has a large number of customers. If you plan to relocate and text Kevin, you have only two options:

  • service can be fast and cost-effective but poor,
  • fast and excellent but expensive,
  • or it can be great and affordable but slow.

You can never have all three of these together as a fast, excellent, and cost-effective service. People think this is a joke, but it has been studied as a “project management triangle” since the 1950s. Blockchains suffer from a similar problem called scalability. Before jumping on a train that looks glamorous, fast, and comfortable, but whose destination is nowhere to be found, we need to know the limitations and disadvantages of this space.

The scale of scalability

A blockchain can only have two of these three characteristics: fast, secure, and decentralized. So far no one was able to send in the perfect solution, which is not strange. Although it may seem that we are getting closer to it (I will explain more about this).

Let me add two important points. Firstly, I’m not supposed to talk about the differences between the general and private, exclusive, and non-private Block. Understanding these differences is essential and discussed in the next sections of this article, but it is not necessary to have a lot of information on this to understand so much. Second, if you are a developer, understanding it will be very easy for you. This issue is pre-determined.

what is the ideal block of China?

  • Should be fast or otherwise scaled; That means you can manage thousands of transactions in seconds.
  • Must be safe. The order not to secure the bug (BUG) is not in their code (these bugs are always inevitable) but should control threats such as a 51% attack (an agent of more than half the network), Sibil’s attacks (a factor of several identities forgone and uses.
  • A china block is ideal. In addition to having other benefits, it does not make sure that no single agent or group of the ability to steal the chain, its censorship, or changes in management through secret transactions.

This advantage can be useful in the applications of businesses in which they generally do not trust each other. In the case of public and illegal ice blocks, they are allowed to join and participate in the network.

The satisfaction of all three conditions is simultaneously difficult

We will never have the ability to build a China block faster than a traditional database running on a server. The question is, how much we can sacrifice. If you want to resist your Chinese block as much as possible against attacks, you should choose the proof of work as a consensus algorithm.

In a proof system, nodes should spend a lot of computational energy (electricity) before adding the block to the chain. This will be a time-consuming process, so the proof chains will never be able to compete in speed. This is not an object because it is related to the mechanism design and Bitcoin does not prioritize the network operating power.

stock proof and validity proof

Other consensus mechanisms such as stock proof, representative shares, validity proof, etc. are faster than work-proofing mechanisms. You will not be able to implement significant and significant operations on Chinese blocks with 7 transactions in seconds, such as bitcoin, but the difference between a thousand or 15 thousand transactions per second is not related to most commercial applications.

Thousands of transactions per second are probably fast enough. Block non-proof of work should create a balance between security and decentralization, and it’s no surprise that they tend to abandon decentralization because, in the end, nobody intends to build a vulnerable Chinese block. There is no complete solution, and personal primates are important as the goals of use.

You will understand this by mentioning the example. The best example of a quick and secure and safe block is Ripel. The Ripple Foundation chooses the validation of the nodes that can add new blocks to the chain. Participants in this network should trust this credit, and this trust will lead to the use of China Block.

Have we replaced only mysterious private banks with another mysterious institute?

Generally, the population of China does not see Ripel and I’m sure you will notice the reason. My non-popular opinion is: that Ripple is a superb technology. The company is in extraordinary business development and I respect this issue, But the reputation of China’s Block is the only hollow nominal.

Is another controversial project that prefers security to decentralization. China’s OS Block includes 21 Block Manufacturers. Only they can add new blocks and receive financial rewards. Compared to Bitcoin (more than 10,000 ninety) or Atrium (more than 12,000 ninety), this network looks very concentrated, but the problem is not only technical but also covers the political aspect.

Firstly, there are widespread reports of hidden transactions through hidden transactions from 17 of the 21 manufacturers of Blocks. Duma, the method used by the EAS, provides reversal of transactions; The job that was recently carried out on this network. Both of these are in contrast to the basic philosophy of China’s block, and therefore do not offer any one of the programs on the ie. As long as the motivations of this network are not well adjusted, this technology will not matter.


In contrast, Stellar seems to have taken the correct balance. This method allows everyone to run ninety and do not need to choose several mysterious central units. Since operators do not receive financial rewards, the Stel problem is the lack of motivation.

Choosing this type of design helps keep the transaction costs, but this is a dual sword. There is no free lunch. The transaction with a low or zero cost leads to a lower degree of non-concentration. If people do not have the motivation in the network, they will certainly control the nodes and organizations at more cost. However, Star has taken a fairly correct path. The project that tries to resolve this extraordinary trailer is Atrium. It is not unclear that Vitalick proposed the fragmentation of scalability.

The perceived will probably be moved to prove the work in the next time between 12 and 18 months, and this will lead to more transactions per second, without wasting a large amount of security and decentralization. Other protocols, such as Sharding, will later increase the network operating power.

What is the scalability in China’s Block?

What is the scalability in China's Block?
All transactions and events are at the protocol level.

All transactions and events that we talked about are at the protocol level. This issue returns to the basic logic of the protocol. However, this is not the only way to scale the Chinese block.

The second layer solutions that we will talk about in the next sections will not increase operational power, but remove some transactions (data) from the chain. Imagine storing the results of a chess race on the air block of the Ethereum. Of course, this is not a good example because you should use a simple database but stay with me

. Each simple move that players do can be a transaction, but do not necessarily want to save each of them on the original Chinese block. Since players know the rules of the game and generally trust each other, it’s enough to save any movements in transactions between both of them. You can use the Atrium chain to register the page status after 5 to 10 moves or more you will save a good point between the stored data and the correct chain. Lightning networks, status channels, and plasma have been created for this purpose.

How Blockchain Changes the Logistics Industry?

The logistics industry is becoming increasingly complex, and supply chains include an increasing number of locations and third parties to process, complete, and ship goods. Given that management usually changes rapidly between different stages, there is a huge potential for incorrect communication and general errors. This supply chain inefficiency can cost businesses millions of dollars annually.

According to the World Economic Forum, the widespread acceptance of blockchain could increase global trade by up to $ 10 trillion over the next ten years, by removing trade barriers and accelerating long-term processes.

Here are some of the methods that blockchain uses to change the logistics pattern.

Reduce administrative costs

An issue that has plagued logistics for decades is called the “paper monster.” Such as abundant and endless documents, main offices, and …

Physical paperwork, in addition to being expensive, is difficult to track and easily lost. In addition, sometimes the unavailability of information leads to a slow process of transportation and delivery. With the constant increase in the volume of orders, administrative costs can be increased at the same time up to 20% of the total shipping costs.

The decentralized nature of the blockchain allows important logistical information to be easily accessible to all parties involved in the supply chain. Large retailers such as Alibaba and Amazon have already begun testing blockchain to make their overseas operations more efficient.

Real-time tracking

Long-term vision has always been one of the biggest logistical challenges. In the transfer of goods from one side of the supply chain to the other, through different management systems, data may be disrupted and their maintenance is costly and at the same time-consuming.

Nothing is more important than fast delivery on the same day, to solve the problem of customer waiting and packet tracking problems. Blockchain technology with data chronology is an intuitive way to record every step of the order or delivery process.

Load efficiency

For example, given that trucks handle more than 70 percent of domestic shipments in the United States, this important part of the traditional supply chain does not seem to be well optimized. Because in many cases, trucks drive more than 29 billion miles with partial loads or empty trucks, which imposes huge costs.

Blockchain technology provides a secure and transparent platform for its permanent partners, such as (shipping companies, carriers, etc.) to share the latest information on current and future order volumes, and a broader view of future logistics planning progress. Gives.

Blockchain as new technology is still in its infancy, so it will probably take some time for companies to see the widespread use of this technology. But it is to be expected that Blockchain, with its efficient approach to information management, will in the future solve many of the problems that the logistics industry has been grappling with for decades and will transform logistics.

How does blockchain change the transportation system?

Finding a faster and easier way to move people and goods has always been a human concern. Transportation acts as a link between production and consumer markets. Transportation is the reality of life today, and without efficient and cost-effective transportation, any kind of transportation becomes impossible.

If it were not for the current transport, the situation in the modern world would be completely different. Blockchain technology has now made it possible for the major transportation industry to be much more efficient and cheaper than traditional methods.

Today, the transportation process involves several intermediaries in addition to the parties to the transaction and the carrier. So the transportation process is now much more extensive.

In addition, in the path of sending goods from producer to consumer, different approvals must be made, for example, is the product what the buyer wants? Has the product reached the buyer safely? Or what was the timing like? All of these issues must be approved by several people.

This complex and lengthy process can be costly and often inefficient. But this is not all difficult.

Some of the problems that the global transportation industry is currently facing are:

  • Manufacturers have difficulty finding trucks and any other means of transporting their goods. This problem is not due to a lack of capacity but to the lack of optimal use of existing vehicles. Trucks are estimated to travel more than 29 billion miles with partial or empty loads.

According to the American Truckers Association, there are approximately 1.5 million transportation companies that employ approximately 3.5 million truck drivers. However, 90% of these companies have only six or fewer trucks. Despite these inefficiencies, the industry seeks to match the demand for freight with increased carrier production.

  • $ 140 billion a day is spent in the transportation industry on account of differences in freight costs.
  • Cargo processing and management account for up to 20% of total transportation costs due to over-reliance on office paperwork.
  • 8.5% of sensitive drug consignments never go through customs due to exceeding the acceptable temperature range.
    One of the new technologies that can significantly reduce the above problems is blockchain technology. Blockchain is a technology that uses cryptocurrencies to create cryptocurrencies. Now you may be wondering what this technology has to do with transportation and how it can help the industry.

How does blockchain help with transportation?

How does blockchain help with transportation?
Blockchain is a secure digital general ledger

Blockchain is a secure digital general ledger on which various information can be recorded. The information that enters the blockchain can never be changed by someone else. Most importantly, each person can independently store their information on the blockchain. The information in the blockchain is available to everyone and no one can manipulate or control it.

This digital office is a series of “blocks” encrypted together in a public “chain”. That is why it is called a blockchain.

Blockchain was created using mathematics and cryptography techniques. While the technical details of blockchain can be complex, using this technology in business is relatively simple.

The way a blockchain works is that if an individual or organization wants to change the information in a block, everyone is aware of it. Now, all members of that blockchain must agree to make changes to a block, and no one can do it alone. That is why there is no possibility of abuse or criminal activity in the blockchain.

potential technology

This potential technology can be used in the transportation industry to correct many inefficiencies. To better understand this, we need to know how the supply chain works and how this chain will change using blockchain.

In the supply chain, the retailer sends its purchase order to the manufacturer. This order is registered in the order management system and after confirming the inventory through the inventory management system, the order enters the transportation system to set the bill of lading for the transfer of goods. After receiving the bill of lading, the shipping company provides the possibility of transferring the product from the factory warehouse to the applicant.

If blockchain technology is used in all stages of the chain, the following process is created for the supply chain. Blockchain technology allows information to be verified through distributed head office. This eliminates the overlap and discrepancies in the information that existed in the data verification path, and the additional information is appended to the main blockchain input. For example, the tracking number can be added to the order entry in the blockchain.

Today, the use of this platform in the logistics industry has largely eliminated many of the proposed inefficiencies; Including:

  • New platforms on the blockchain platform allow the required documentation to be validated and coordinated across the distributed general ledger, thus greatly reducing physical paperwork.
  • By using smart contracts, which is one of the capabilities of blockchain and automatically executes actions, the approval and clearance of goods can be faster and more efficient and reduce the process of approval of goods at customs checkpoints.
  • Organizations need up-to-date, secure, and reliable data to make decisions. Blockchain ensures reliable data in the transportation and logistics ecosystem because the whole network helps to validate the data.
  • Recent studies show that a simple shipment has to go through more than 30 different organizations and requires more than 200 separate notices to reach a retailer, according to the Vincota Web site. Any interruption in these steps can damage the cargo or cause it to be lost. Using blockchain, all these steps can be done safely and with confidence in the accuracy of the information at the moment.
  • With the increasing demand for overnight and one-hour delivery services, conventional tracking technologies may no longer work efficiently, but blockchain technology provides an optimal and immediate way to track and authenticate orders.
  • Blockchain can track the supply chain of truck parts and second-hand trucks through a digitally distributed general ledger. This will keep the condition of the active trucks and their quality up to date. In this way, the blockchain prevents sudden events that occur due to a technical defect.

How did blockchain make its way into the transportation industry?


Blockchain Agreement in Transport

One of the main reasons for the rapid acceptance and growing progress of blockchain in the field of transportation compared to other industries is the formation of the Blockchain Agreement in Transport (BiTA).

Founded in August 2017, BiTA quickly became the world’s largest blockchain business, with nearly 500 members in more than 25 countries, generating more than $ 1 trillion a year.

BiTA is a membership-based organization. These members cover almost all areas of the truck and transportation supply chain, including large companies such as UPS, Salesforce, and DAT. BiTA members have a common mission to advance emerging blockchain technology, which is to develop transportation industry standards and educate members and others about blockchain plans and solutions.

With more than 10,000 members, the organization is constantly expanding, but the influence of its current members in this industry is also very high. BiTA members account for more than 85% of all transportation and freight transactions worldwide.


MOBI is a non-profit association of the largest automakers in the world that works with startups, governments, NGOs, transportation agencies, insurance companies, e-transportation leaders, and technology companies. By adhering to blockchain protocols, the union seeks to provide simple blockchain-based standards for identifying vehicles, people, their occupations, and safe travel. MOBI aims to provide more efficient, cost-effective, safe transportation with less pollution and traffic.

MOBI creates a digitally identical version of the vehicle on the blockchain platform to set rules and standards and vehicle authentication (VID). In addition to authenticating a vehicle, this synchronization can track the vehicle’s use of existing infrastructure such as roads (V2I) and all vehicle payments (V2x) such as gasoline costs and fines.

This feature provides instant monitoring of accidents and technical defects in vehicles. MOBI also makes it possible for cars to pay by creating a cryptocurrency wallet. That is, a car pays for the cost of repairing, maintaining, and building infrastructure, depending on how much it is used on roads and streets. Also, with the ability to tokenize on the blockchain platform, through this wallet, each car can sell its empty seats to others.

Tokenization is the process by which sensitive data is converted to insensitive data, or “tokens”. These tokens can be used in databases or internal systems.

Another feature of MOBI is monitoring the use of public transportation. The organization uses incentive mechanisms such as wallet charging to encourage people to use public transportation more. On the other hand, according to the customer’s knowledge and needs, it can make the necessary infrastructure more efficient. Thank you for following Digital Currency Signal till the end of this article.


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