Blockchain uses computer code to record every step of a transaction and delivery in a permanent digital ledger, providing transparency. The ledger can’t be changed unless all involved agree, reducing common disputes over issues such as time stamps, payments and damages.
FedEx’s interest in blockchain and the Internet of Things are part of the company’s strategy to improve customer service and fend off competition, Smith said. FedEx is working with an organization called Blockchain in Transport Alliance that is attempting to set industry standards for using the technology in transportation.
Blockchain has the potential to lower transaction costs, speed up processes and free up working capital, according to the alliance.
FedEx also is experimenting with a small bluetooth-based, low-energy tracking sensor called Tron, Chief Information Officer Robert Carter said at the conference. The company has taken out more patents on Tron than any other technology in the company’s history. FedEx also is part of a team announced May 9 that will test small drone flights at the Memphis International Airport.