NFT & Logistics, what future ?
24 February 2022
An NFT could provide a much more detailed control of traceability. What is really an NFT ? How can they be used in logistics ?
What is an NFT ?
NFT is the abbreviation of the term "Non Fugible Token". An NFT is a digital document that is a form of "contract", recorded using blockchain technology. But why are NFTs so special ? Because they cannot be exchanged like a traditional currency. Indeed, an NFT will always be unique, there are no duplicates, which makes it relatively rare. NFTs were created to certify that a person is the rightful owner of the associated asset. An NFT can identify any kind of asset, for example a photograph, a piece of art or even a simple tweet.
Using NFTs in the Supply Chain :
The number one issue in the supply chain is traceability, which can lead to several stock losses per year.
As the supply chain is simply a series of exchanges of goods. If we symbolise these goods with an NFT and exchange the token with the good it represents, then we can know who is currently responsible for that good at any given time.
In order for this to really work, we need a contract between the actors as we saw earlier. You should not be able to send NFTs if the counterparty does not agree to receive them, just as you will not give the goods away if they have not received the NFTs.
For all use cases ?
NFT is an experimental technology. However, some NFT solutions for logistics and the supply chain have already started to emerge.
Indeed, thanks to NFT, we can access the metadata of some products. This metadata contains several important pieces of information, such as who is in charge of the NFT token, where it is located and certain characteristics (weight, size, etc.).
Each piece of information is constantly updated in the NFT, which itself is stored in the blockchain network. Once it arrives at its destination, the detailed and reliable history of the entire product journey is recorded, from its point of departure to its delivery.
The benefits of NFTs for logistics are :
- Detailed traceability,
- Better accountability,
- More information security.
Monstock streamlines processes and increases traceability for complete tracking of customer orders, delivery times and stock management.
Reduce the time spent on your orders. Manage your supplies, replenishments and buffer zones with intelligent picking proposals for optimised stock and warehouse management.
To find out more : contact the Monstock team.
