Why use Blockchain for Shipment Tracking?

Blockchain has successfully touched many aspects of the supply chain, and shipment tracking is not at all an exception. Where blockchain has facilitated a lot of work for the companies, it has also benefited the customers who generally fail to receive up-to-date information about their shipment. The inception of blockchain in shipment tracking helps the customers to gain all the notifications and cues pertaining to the shipment.

Shipment sans blockchain

The trend of ordering things online is growing with each passing day. People order stuff on the internet and then wait for their packages to arrive. They generally do not get any information pertaining to the shipment of their order. The orders are delivered by courier companies or postal services. Generally, the shipment arrives during the working hours and many of us fail to receive the shipment. In these cases, the shipment is returned.

The postal services or the courier companies perform door-to-door delivery of the packages. This adds up to the delivery cost and consumers suffer. The companies bring to use their fragment system to carry out the process. Though the centralized fragmented system works well, the communication between the courier companies and postal services across the world stays weak. Due to this, the consumers fail to get the information pertaining to their shipment.

Blockchain in shipment tracking

Hiring a blockchain consultant can be a very beneficial decision for any company and as far as shipment tracking is concerned, the blockchain plays a major role in ironing out all the shipment related issues.

The blockchain is decentralized and transparent. It saves a lot of extra costs and offers a secure platform to the people, who are both at the giving as well as at the receiving end.

Here are a few benefits of blockchain in shipment tracking:

Identity verification

The biggest benefit attached to the arrival of blockchain in shipment tracking is that it makes identity verification an easy job. The courier companies and postal services get a platform to identify the identities on the blockchain. Blockchain facilitates the management of the offline identities and the digital identities.

The identities are stored on an unchangeable ledger and the courier companies and postal services could easily retrieve all the required information pertaining to the identity. This makes way for safe and secure transactions for courier companies and postal services.

The postal services could further verify the identities by identification cards. The virtual identity that has been verified can be linked to work in the blockchain system with the mailing address of the customer. The identities can be then used for log-ins into secure websites.


Tracking package or mail

Blockchain helps the courier companies and the postal services to identify the packages and mails in the similar way as they identify the identities. With blockchain, the chain of guardianship, split between various partners, could be tracked using a small censor on the parcel. Tracking the parcels on the blockchain also helps in facilitating custom clearance as well as consolidating shipping, logistics, and payments.


Blockchain plays a major role in facilitating the logistics management. The decentralized verification feature of blockchain and the control system help in securing and transferring the data safely. The apt device management done by the postal services using blockchain helps in easily collecting and securing the information. It helps in cutting off the maintenance cost involved in controlling the entire system and also, enhances the efficiency by manifolds.

Accelerated processing time and actual time updates

Various shipment tracking softwares accelerate the processing time and also, offer real-time updates to the customers.

It generally takes a lot of time and effort to mail the documents to the various parties involved. The use of blockchain in shipment tracking helps in sending out information instantly. It also accelerates the processing time that generally takes weeks and weeks to get completed. With the help of blockchain, it can be brought down to only a few minutes.

The software code of blockchain automates all the tasks that generally take a lot of time.

Higher accuracy

Use of blockchain automates all the processes pertaining to shipment and hence, it guarantees higher accuracy. The automated processes are generally error-free.

Enhanced security

The information placed on blockchain is encrypted. It cannot be tampered. No information can be changed and this leaves no room for any kind of fraud. The absence of manipulation in information enhances overall security.

Enhanced security


Anyone who has an access key can gain an access to the information stored on blockchain. Everyone can gain the access to the information, but could not alter it in anyway. This ensures complete transparency. No facts or figures could stay hidden from any of the involved parties.

Increased competition in the market

Incorporation of blockchain in shipment tracking injects competition in the market. As everyone can use blockchain, this brings down the entry hurdles. This ultimately increases the competition in the market.

Cost saving

Documentation, errors, and delays in carrying out essential procedures eat up a lot of financing cost. They can be eliminated with the use of blockchain in shipment tracking.

If a company uses blockchain, it does not require any intermediary. Also, it eliminates the need for manual documentation and leaves no space for errors and delays. This saves a lot of extra costs.


There are several other reasons which make the idea of incorporation of blockchain in shipment tracking, an idea worth trying. Blockchain has several other features that make shipment tracking easy and feasible for the postal services and courier services as well as for the customers.

Though there are several benefits of using blockchain in shipment tracking, there are still many challenges ahead of the road.

In the absence of the global adoption of the blockchain, the technology is not yet extensively used across the world in the area of shipment tracking. But, soon, the technology will take over the world and will surely facilitate the entire process of shipment and shipment tracking along with other processes.

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