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Blockchain outfit TBSx3 has completed one of the largest trials of Blockchain technology to secure cargo across the global supply chain, as a first step in combating the trade of counterfeit goods.
TBSx3 has developed a blockchain-based verification system that delivers military-grade security across global supply chains. Its use of 44 alphanumeric character security cryptography, compared with the more commonly used six-digit public cryptography, allowed it to secure the entire chain of custody.
TBSx3 obtained the co-operation of some of the biggest names in the freight business for the trial. DP World, DB Schenker and Hamburg Sud all took part.
KPMG advised TBSx3 on the trial and verified the handovers for the integrity of the product during its journey from South Australia to the port of Qingdao in northeastern China. The system was geared to ensure the end customer received the genuine article. This is a ‘whole of chain’ global supply chain security environment that has a military precision and force, and that can constantly monitor product movements anywhere at any time. The traditional bits and pieces security mosaic is no longer enough.
Currently, every link in how goods are created, distributed and delivered to the consumer across long distances and several stages, remain mostly opaque for customers. This lack of transparency often could have dire consequences, as seen in the rampant global trade of fake pharmaceuticals and other products. The OECD has estimated that the global trade in fake goods is worth nearly $US500 billion a year. Interpol has estimated that fake pharmaceuticals kill more than a million people each year.
TBSx3’s solution, using a distributed blockchain ledger, manages every custodial link during the cargo’s journey and verifies that the product at the end of the chain is genuine. In terms of the numbers of partners simultaneously involved and the challenges posed for resolution of integration with multiple existing proprietary security systems, this can be developed to become a new security benchmark.
TBSx3’s promise of transparency and security is very attractive for operators. This will avoid the trench warfare of centralized data systems with massive hacker attacks and equally massive static defenses, which has characterized so much of online digitized security, up to now.
Written by: Bob Pritchard