The post DePIN has a trillion-dollar opportunity in logistics appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. The logistics industry is plagued with outdated software systems causing bad data. Most lack the interoperability, standardization, and immutability desired by logistics stakeholders. With its promise of transactional efficiency, cryptographic security, scalability, transparency, and accessibility, web3 tech is seen by many as the natural successor to legacy systems/processes that are no longer fit for purpose. Despite this popular viewpoint, open, decentralized networks and token reward systems have yet to embed themselves in the supply chain and logistics. Why? While many have tried, none have successfully incentivized the production of better data that could save the industry billions per year. To build a successful DePIN solution for logistics, the key focus must be on incentivizing transparent data production and sharing—elevating industry-wide data quality standards. Resistance to change The $9.7 trillion global transportation and logistics industry is highly complex and characterized by many moving parts. Most established companies, particularly shippers, freight brokers/forwarders, and carriers, are so laser-focused on managing their day-to-day operations that they won’t consider overhauling long-standing systems. Logistics market size and growth, 2022 to 2030 | Source: Precedence Research While the eventual adoption of new technologies is inevitable, most executives would rather kick the can down the road, particularly as it is perceived as costly. The cost of changing their systems and adopting a universal data quality standard is far higher than the benefits of updating their systems to support a standard model. So, companies continue to bolt on new systems that attempt to fix the symptoms of the problem, but the root of the problem remains the same. This stubborn resistance to change is not the only impediment. The logistics industry is highly fragmented, with no…

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Filed under: News - @ June 22, 2024 10:04 am