Cryptocurrency
Is cryptocurrency just a 21st-century fad or is it the currency of the future? Today, when buying a packet of salt from your local grocer, he trusts that the cash you are physically handing to him is a legitimate form of currency. However, that trust is not implicit when someone buys a packet of salt online and uses cryptocurrency to make the purchase.
Also known as virtual currency, cryptocurrency is designed to operate securely and anonymously within a decentralized digital cash system, essentially removing the need for third parties. The system is powered by blockchain, a ledger of transactions distributed all over the world which is automatically updated. These ledgers are maintained by a network of people who are also paid in cryptocurrency.
Bitcoin was the first cryptocurrency created by Satoshi Nakamoto in 2008. Today, there are thousands more including Ethereum, Litecoin, and Ripple. Cryptocurrency has since become the fastest-growing segment of the global financial world, and major businesses are starting to accept it.
It is seen as a disruptor to many industries including logistics. In 2018, a Hong Kong-based start-up, 300Cubits, introduced a digital currency called TEU tokens. The currency is used when placing a deposit for shipment bookings and is said to provide greater visibility to the booking process and allows users to penalize bad behavior. This could reduce carrier overbooking and shipper no-shows, which cost the industry about US$23 billion (€20 billion) annually.
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