How NFT Technology is Transforming Supply Chain and Cargo Shipping

Alessandro Bianchi says Non-Fungible Tokens (NFTs) gained widespread popularity in 2021, benefiting investors in millions of dollars. While the previous year was primarily NFT art projects and collections, this year, people are experimenting with the real-world use cases of this novel technology. Among the many industries experimenting with NFT solutions, logistics and cargo shipping will be the most effectively revolutionized.

Non-fungible tokens (NFTs) have the potential to radically disrupt the supply chain sector efficiently and effectively by addressing specific pain points that cause significant delays. Due to the digital footprint and data tracking capabilities of NFTs, these pain points can be addressed.

With NFTs, we could find out information about specific products, like who owns them now, where they are, and what their weight, size, and certifications are. This data is updated in the NFT as the product moves through the supply chain, which is saved on the blockchain network. When the items arrive at their destination, the complete history of the product’s entire journey from its source to delivery is provided.

Pros of Using NFTs in Logistics and Cargo Shipping

Here are some advantages of using NFTs in Logistics and Cargo Shipping:

  • Security: NFTs ensure secure information transmission between supply chain parties. The NFT data is kept on the blockchain network as a smart contract, prohibiting unauthorized loss, deletion, or replication. Each network node stores everything.
  • Traceability: When dealing with food, pharmaceutical products, chemicals, or delicate goods, it’s crucial to know their logistics and manufacturing procedures, where they’ve been, and how long they’ve been there. With NFTs, anyone may get real-time product traceability information thanks to their transparency.
  • Responsibility: With NFTs, we can figure out who’s in control of a product at any given moment. To issue an NFT, both parties must engage in a liability agreement. In other words, an NFT cannot be transmitted unless the counterparty agrees to accept it, and items cannot be delivered until the party responsible has acquired the NFT.

The Takeaway – The future of Supply Chain with NFT technology

Blockchain, NFTs, and smart contracts are all new technologies still in the early phases of development. While many sectors, including Supply Chain and Cargo Shipment, are experimenting with this new technology, the future remains unclear. Time will tell if NFT technology will survive to change the supply chain or fail to scale. 

About Chatsworth Securities LLC
Chatsworth Securities LLC is an investment banking firm that has been providing financial advisory services to corporations and entrepreneurs since 1996. Chatsworth advises on both domestic and international M&A transactions, fundraising and capital raises for large and small companies around the globe. Chatsworth has participated as an underwriter in over six hundred public offerings and has raised over $5 billion for traditional and alternative money managers and their funds.