dexFreight, a decentralized logistics platform, has completed its first blockchain-based shipment using smart contracts. The platform, which envisions an ecosystem of open source protocols, blockchain and machine learning technologies, allowed the shipper and carrier to directly connect, negotiate rates, and schedule pick-up and delivery.
The 5,320-lb frozen food shipment was hauled from Preferred Freezer Services in Medley FL to Manny’s Enterprises Inc in Sunrise FL recently.
For this first truckload shipment, dexFreight partnered with Netuno USA, a fast-growing seafood wholesaler; Arel Trucking Inc, an asset-based motor carrier with 180-plus trucks; and RSK, the first smart contract platform secured by Bitcoin. Funds for the transaction were held in escrow by the smart contract on the integrated RSK platform and were automatically released to the carrier upon delivery.
“This is a huge milestone towards an imminent transformation of the logistics industry through the adoption of blockchain technology,” said Rajat Rajbhandari CEO and co-founder of dexFreight. “Our platform aims for a truly decentralized model, open to all the stakeholders, and allowing for a new world of services that will bring much needed optimization and liquidity to this industry.”
“With the use of smart contracts, companies like dexFreight can transfer value and assets between parties on our platform,” said Diego Gutierrez, CEO of RSK. “With a defined set of rules, in this case for logistics, all participants know that their business needs will be fulfilled without anyone altering their agreement or changing the rules.”
dexFreight features a blockchain-based verified identity and objective reputation system derived from smart contract data and key performance indicators (KPIs) such as on-time pick-up and delivery, on-time payments, loading and unloading times, and freight claims. With this data readily available, shippers and third parties can streamline the carrier onboarding process while reducing associated liability risk.
With up-to-date profiles in the platform, including all required and relevant documentation, counterparties will be automatically qualified based on unique business requirements, issuing alerts or even preventing transactions when qualifications drop below designated thresholds.