Finance Ministry initiate blockchain based project for Logistics Industry

Counting on the potential of Blockchain technology to revolutionize the logistics and trade industry of India, the Finance Ministry’s Central Board of Indirect Taxes and Customs (CBIC) explores a blockchain-based initiative to achieve secure container documentation and GPS-based tracking.

The prototype ‘Electronic Cargo Tracking System (ECTS)’ Launched by CBIC on October 15 is yet another step taken by the center to promote digital India and make trade efficient.

The technology which simplifies record keeping and management is currently undergoing test runs within Delhi for liquor.

 As per reports, the trial runs are being conducted after consultation with all stakeholders—the customs, the importers, the warehouse owners.

On successful completion of the test runs the new blockchain-based project will be rolled out across India following an assessment of costs, time savings, and compliance.

Use Of Blockchain Technology

Blockchain-based tracking systems in this data-driven world are believed to be the most reliable and unbreakable in terms of security.   

Blockchain is ideal for delivering information because it provides immediate, shared, and transparent information stored on an immutable ledger that can be accessed only by permission network members.

The outbreak of the pandemic has been hastening the adoption of blockchain technology among businesses. 

It is believed that in the coming year’s Blockchain will replace the paper-based systems which not only require forms to pass through many channels and approvals but also increase the risk of loss and fraud while also adding a significant amount of administrative work.

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