ICO Spotlight: Fr8 Network Uses Blockchain To Smooth Logistics Industry Tanglebr>
The Fr8 Network is a decentralized blockchain platform for the logistics industry. The Fr8 team hopes to capitalize on the growth of this industry, which they say is projected to reach US$15.5 trillion by 2023.
The Fr8 team believes there are many problems in the current logistics ecosystem. Redundant data is created as items travel from person to person along the logistics chain, creating errors all the way. These errors must be reconciled, wasting time and money. While some companies have tried to connect various information systems to solve this problem, they have met with little success.
Reputational data is housed in large brokerages and cannot be obtained without paying large fees. Brokers are not incentivized to match up shippers with carriers that can handle their needs. Instead, they usually just choose the cheapest carrier. Tracking and coordination is managed through ordinary pieces of paper, creating inefficiencies. There is a high risk of fraud, and trucks often run with no cargo because of inefficiencies in the system.
The Fr8 team believes these problems can be solved through a decentralized blockchain network made especially for logistics industry stakeholders.
On the Fr8 network, users (carriers and shipper) sign up and create profiles stating their needs. The Fr8 board algorithm then uses peer reviews, data about historical performance, and other public information to match shippers up with the best carriers to suit their needs.
Once delivery is made, end-users are encouraged to leave reviews as to how satisfied they were by the speed and customer-service of the carrier. These show up as “ratings” on the network and are publicly available. Shippers themselves are also rated by carriers.
Lane-pricing data (data about the cost of particular shipments) is also maintained on the network and is publicly available. This prevents rent-seeking behavior from large brokerages.
On the Fr8 network, credit can be made available to shippers through a feature called Fr8 Factoring. In addition, there is an Fr8 Rewards program to allow truckers who use the network to get discounts on fuel, hotels, and other costs.
Early adopters of the network will earn FR8 tokens to supply data to it. This will allow the network to grow and data to accumulate on it. This will increase value of the network and eventually challenge the power of the large logistics brokerages services. As the network grows, the rewards for providing data will diminish and the data itself will provide an incentive for people to use the network.
With this combination of services, the Fr8 Network team believes it is poised to disrupt and revolutionize the logistics industry.
The principal competitors to the Fr8 Network are large logistics brokerages like XPO Logistics, J.B. Hunt Transport Services, UPS Supply Chain Solutions, and DGL Supply Chain. However, Fr8 Network believes it can compete successfully against these services because of its transparent pricing and because of the individual autonomy it gives shippers and carriers. [MORE]
The Fr8 Network summary was originally published on the Amity Blog. The Amity editorial team of cryptocurrency experts and writers predominately covers whitepaper summaries of ICOs and long-form articles about topics that interest their community.
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