You may know the feeling when you order something off the internet and is a bit insecure on whether or not it is going to get delivered to you. But there may be a way to secure that the store and the delivery company does there best to make sure your package gets delivered safely to you.
When you order something online today it is a simple process but not very secure. So let’s go over step by step where there is a lack of security. For this example, I am using a Chinese online store to buy earbuds and have them sent to Denmark.
When I order online through something like Wish I have some security but first of all the store can take my money as soon as the order has gone through because I have given permission for them to take X amount. But there is no security for I am getting my package. But most of the time I get a confirmation of the packet being sent and thanks to Chinese postal service I am able to track my package until it hits Europe where it diapers into the local postal service. And shows up again when the carrier rings my doorbell or leave a note for me to pick up the package at the post office. And through the process, everyone is getting paid in advance of delivering, and I have no were to stake a claim if my package disappears unless I pay extra for insurance.
Can we improve the system
I would say yes we can. It does require new software for the postal services and online store, but it can be done with the use of traditional currency but gives more meaning to do with cryptocurrencies. With inspiration from the IBM Maersk joint venture, I together with some of my friends have thought about a system that can be made today and implemented only by using new software.
Our thought on it will be a smart contract-based system, and it needs to be set up so I will execute in the following order.
- You order the product online and pay directly onto the contract and give your public identification. You are paying the price of the product + cost of shipping (maybe + a small insurance which everyone purchasing pay to)
- The company pack and ready the shipment.
- The delivery service picks up the package scans it as picked up. Thanks to a unique code the company selling the product now gets paid.
- The package is shipped, and along the way, as one company is finished handling the package and giving it to the next, they get paid.
- Once the package reaches you. It is time to get your private identification key scanned as a way of signing for the package and thereby can the last carrier get paid.
There are definite benefits for companies and consumers and let’s follow the supply chain first of all the seller is protected by getting paid as soon as the product leaves their hands and as soon as the payment is cleared, they can see that there is coverage. By using cryptocurrency, the consumer can’t reverse the transaction so now we have seller protection.
One the delivery company takes possession of the package it is visible to them that there is full coverage for the shipment. So they have total security.
For the buyer, there is the security in the way that the product needs to be shipped within the time allotted by the contract. The security in the delivery company does their best longer their money. Besides that, there are full track and trace.
If we then included a mutual insurance for all the contract to be paid to one big pool then everyone except the carrier that losses the package is covered. This insurance can be set up, so it automatically adapts the price to what is needed.
It is my believe we at some point in time will see such a system may not directly as described but we will see something resembling this. There are already systems that have the features such as the WHO blockchain project and IBM & Maersk joint blockchain venture.