Decentralized logistics platform dexFreight announced Oct. 24 that it had completed its first shipment — of frozen foods — using a blockchain-based contract system.
The platform allowed the shipper and carrier to directly negotiate rates and schedule pickup and delivery.
The first shipment was a 5,320-pound haul from Preferred Freezer Services in Medley, Fla., to Manny’s Enterprises in Sunrise, Fla.
To complete the shipment, dexFreight partnered with seafood wholesaler Netuno USA, asset-based motor carrier Arel Trucking and RSK, a smart contract platform secured by Bitcoin. Transaction funds were held in escrow on the RSK platform and then released to the carrier upon delivery.
[FULL VIDEO] @dexFreight‘s first truckload shipments using #blockchain technology! Big thanks to our partners @RSKsmart, Netuno USA, and Arel Trucking for making this first shipment a reality! #logistics #SupplyChain https://t.co/6WUcOb7UE9
— dexFreight (@dexFreight) October 25, 2018
“This is a huge milestone towards an imminent transformation of the logistics industry through the adoption of blockchain technology,” dexFreight co-founder and CEO Rajat Rajbhandari said. “Our platform aims for a truly decentralized model, open to all the stakeholders, and allowing for a new world of services that will bring much needed optimization and liquidity to this industry.”
DexFreight’s platform features a blockchain-based verified identity and objective reputation system, pulling from factors such as smart contract data and key performance indicators. Those indicators include on-time pickup and delivery, on-time payments and loading and unloading times. This allows for a streamlined carrier onboarding process while reducing liability risk. All profiles in the platform are required to provide relevant documentation for licensing, insurance, safety and performance records and credit history.
“With a defined set of rules, in this case for logistics, all participants know that their business needs will be fulfilled without anyone altering their agreement or changing the rules,” said Diego Gutierrez, CEO of RSK.