As a data-infrastructure with added benefits of monetisation, ownership attribution, traceability and a distributed security model, blockchain is among the most versatile in modern technology. Sectors worldwide are finding a way to use it, from payments to construction.
Intelligent transportation systems are a growing space of innovation that many industry experts believe will be one to benefit from blockchain’s capabilities.
These systems allow cities to build safer roads, authorities to implement better traffic management schemes and businesses to enhance transportation operations. With blockchain enablement, these processes can significantly improve, creating a secure and efficient infrastructure that those involved can trust much more.
This infographic unpacks the major potential of blockchain in transportation to help you find opportunities as you begin investing in these technologies.
What is an intelligent transportation system (ITS)?
Intelligent transportation systems (ITSs) allow traffic operators to monitor road conditions, track vehicles and communicate efficiently with other drivers on the road. These systems utilise multiple pieces of equipment when channeling information to the operator, including surveillance cameras, sensors, global positioning systems (GPSs) and traffic management software.
What role can blockchain play in intelligent transportation systems?
Blockchain’s network qualities lend itself well to enhancing how businesses use ITSs. The most evident is how it can help manage data much better and more securely, especially given the growing industry economy. For instance, a self-driving fleet can optimise its route based on traffic data from blockchain-enabled Internet of Things (IoT) devices as part of a robust ITS.
IBM collaborated with ZF Friedrichshafen AG and UBS to develop a blockchain-based automotive transaction platform. The project provided motorists with a more accessible and secure channel to pay fees they typically encounter on the road, such as tolls, parking and electronic charging stations.
This example only scratches the surface of the possibilities. Blockchain’s flexibility as a technology allows it to fit securely in plenty of different use cases involving ITSs.
Use cases of blockchain in intelligent transportation systems
Besides helping you appreciate the technology, exploring these applications may inspire you to discover new ways of implementing blockchain into transport operations.
Truck transportation
The trucking industry is a cornerstone of the global market, with experts predicting it to reach $3.4 trillion by 2030. With the vast number of daily trucking operations, fleets and controllers require reliable ITSs to coordinate their efforts and deliver goods to clients promptly.
Blockchain-enabled ITSs can enhance tracking systems by providing a secure network where operators and fleets can communicate. With the help of smart contracts—self-executing agreements parties can enter into—businesses and trucking companies can hold each other accountable for completing shipments and payments.
Public transportation
Blockchain networks enable passengers to pay fares digitally and securely, eliminating the need for a physical ticket while minimising the risk of fraud. Simultaneously, drivers can automate fare collection and payments for a much more efficient operation.
Likewise, urban planners overseeing these processes can leverage blockchain technology to provide accurate yet anonymised information about vehicles’ locations. This data offers insights into which routes cause congestion or delays.
A study found that blockchain enablement can also benefit shared bus service schedules and management systems. For example, a city’s public transportation network can implement a blockchain-based ticketing system that ensures secure payments while providing operators and commuters with a comprehensive record of travel history.
The blockchain-based intelligent system utilises predefined criteria and algorithms to assess and quantify their contributions. Once you meet these requirements, the smart contract is triggered to release a predetermined amount of reward automatically.
Non-emergency medical transport (NEMT)
The healthcare industry includes enterprises that use blockchain for enhanced operations, specifically in using non-emergency medical transport (NEMTs). NEMTs assist people who cannot drive to their intended destination but require more than a taxi can offer.
Potentially, patients can schedule NEMT using a blockchain-enabled platform. Here, the benefits of blockchain in transportation intersect with blockchain in healthcare: NEMT dispatchers access patients’ health records and preferences—stored in the blockchain—to provide them with the required transport.
A smart contract can secure details such as pick-up, drop-off and any other medical assistance the patient requires on the road.
Logistics
ITSs allow businesses to manage the complexity of logistics effectively, making tracking delicate deliveries much easier and more secure.
For instance, DHL and Accenture partnered in 2018 to create a blockchain-based serialisation prototype to track pharmaceutical products in transit from their origin until they reach the consumer. Stakeholders act as touchpoints with access to the ledger.
This project highlights how the technology streamlines the typically complicated process of global transport logistics. More specifically, it offers an easier way for businesses to accomplish tedious back-office tasks, such as invoice generation and reporting.
Food supply chain
Tracking your food’s journey allows you to mitigate safety risks and harmful pesticides, and it’s possible with blockchain. The technology can store essential data on food items as a digital twin and interact with ITSs to ensure the right products come from the designated supplier and arrive at the agreed location.
It can also act as a theft-prevention tool. If you were to use ITSs that interacted with marked food products, you would be able to notice when fleets veer off track or take an unauthorised route. You can then deploy security measures quickly to prevent major losses.
5 ways blockchain powers the future of intelligent transportation systems
The nature of blockchain creates numerous opportunities to develop a more data-driven transportation system.
1. Streamlines payment processes
Traditional payment processes in the transportation industry involve intermediaries who oversee transactions and ensure their security. They verify payments and often undergo a lengthy billing procedure. While these roles are beneficial, third parties tend to delay processing and increase costs.
With blockchain-enabled payments, you or your business can enjoy a much more convenient and streamlined payment process. A popular means of smoothening payment processes is smart contracts or self-executing agreements among parties.
Say you operate a logistics company that contracts transportation services from multiple carriers for product deliveries to customers. Through a blockchain-enabled ITS with a smart contract, there’s no need tracking each carrier that made a successful delivery to pay them. The smart contract does it automatically, increasing your operation’s efficiency.
2. Reduces expenses
Typical transport expenses include vehicle maintenance, labour and cross-border transactions, to name a few. Blockchain-enabled ITSs enable you to reduce costs in these areas.
For instance, blockchains can maintain an immutable record of your vehicle’s maintenance history. Besides offering transparency, it can also help predict when the car may need another trip to the repair shop. This ability helps your organisation avoid the expensive situation of severe vehicle breakdowns.
A study on international maritime trade highlights the opportunity for blockchain systems to reduce costs significantly because they can optimise transport schedules and stowage plans. The technology can also streamline and automate processes, such as payments.
Similarly, blockchain-enabled systems can benefit land transport. You don’t have to hire additional staff to act as intermediaries in securing payments or negotiating deals since blockchain technology can handle the tasks efficiently, with less exposure to human error.
The security blockchain technology provides also reduces the potential cybersecurity expenses your business may spend without it. Cyber attacks can cost small businesses over $3 million, with larger organisations primed to lose more. Blockchain’s tamper-proof and transparent network can prevent online criminals from getting away with theft or fraud.
3. Introduces load board reliability and distributed freight tracking
Load boards are online platforms where shippers and freight brokers can find willing drivers to transport their loads. They allow the comparison of costs among different freights to understand what makes a good deal.
Security and trust are understandable concerns when it comes to using load boards. Fortunately, blockchains’ proof-of-work mechanism provides security, decentralisation and scalability.
In practise, no single entity controls the load board; instead, it becomes a network where other shippers, carriers and stakeholders hold each other accountable. It improves freight tracking processes, ensuring everyone receives the same updated information about transactions, locations and the condition of goods.
On top of that, blockchain technology also makes it easier for more people to participate, scaling the load board quickly and providing more opportunities for you to find trustworthy carriers.
4. Accelerates carrier onboarding and payment execution
The process of onboarding carriers has multiple hurdles that blockchain-enabled technologies can help solve. Carriers often use specialised technologies and systems that may not always integrate with ITSs effectively, potentially impacting how you exchange traffic data and complicating the system unnecessarily.
Fortunately, blockchain opens the door for you to use smart contracts. In the context of onboarding carriers, these blockchain-enabled, self-executing agreements can set data standards and enhance trust and security.
Since smart contracts are self-executing, you don’t need to oversee whether the parties involved meet the agreed terms formally. This function makes payment execution, like paying fines for contract violations, much easier and more convenient.
5. Fuels sustainability efforts
Blockchain can do more than help your ITSs become more efficient. It can also support your business in tackling environmental challenges. Studies support this fact, with researchers suggesting blockchain can contribute to environmentally sustainable development goals and create a reliable and secure smart city.
Currently, transport businesses often lack accurate route information. Inaccurate course data potentially leads to operators consuming more fuel due to traversing inefficient routes or encountering unexpected traffic.
Blockchain-enabled ITSs can help optimise your travel paths, as you can network participants to share information about traffic conditions through the network. This model allows your business to gauge delivery times accurately and encourage fuel economy performance.
Securing road networks, block by block
Blockchain can unlock much of the potential the evolving transportation industry holds. Blockchain in intelligent transport systems can enable local governments to streamline payment processes, expedite carrier onboarding, and ensure safe and secure user data.
If you’re looking for ways to explore the possibilities of blockchain in transportation, consider supporting your initiatives with BSV blockchain. We offer an infrastructure for a more data-based economy.
Eager to learn more? Download our free eBook for an essential guide on what BSV blockchain is, how it works and the opportunities it presents.
