• Why are blockchains and smart contracts needed in logistics?
• Real-world cases of blockchain use in logistics
• Why do some large projects shut down?
• The advantages and limitations of blockchain in logistics
• Current trends and prospects for the technology's development
Article brief Share Counterfeiting, forged documents, and weeks of customs delays. In 10 minutes, this article will tell you how blockchain solves these problems in 2026. Why TradeLens failed and what future the new EU standards are preparing for world trade. Who ended up among the winners and what awaits the market next.International logistics has for decades rested on trust, documents, and coordination among dozens of participants in the chain. The more complex a product's route, the more intermediaries, manual reconciliations, and points where data can diverge it contains, which is why blockchain has become one of the ways to make supply chains more transparent and verifiable.
In 2026, the technology has already moved beyond experiments, and the real benefit of blockchain is now visible, making it possible to solve specific tasks — tracking a product's origin, speeding up document flow, reducing costs, and automating individual stages of delivery through smart contracts.
The Incrypted editorial team looked into how blockchain is used in logistics and international trade, which cases have already shown results, and why some large projects failed.
Why are blockchains and smart contracts needed in logistics?
To understand why blockchain is needed in logistics, it is worth starting not with the technology itself but with how supply chains are arranged.
They simultaneously involve a manufacturer, a carrier, a port, a warehouse, customs, an insurance company, and a recipient, and each works with documents, statuses, deadlines, and the terms for transferring responsibility. The more such participants there are, the higher the risk of delays, manual reconciliations, errors in data, and disputes over which version of the information is considered current.
Blockchain offers for this a shared digital ledger where data is stored as a chain of blocks, verified by validators, and cannot be altered retroactively. In logistics, this means that information about cargo, documents, and the movement of goods is recorded in a single environment, while participants in the chain see the same version of the data. They can check when a record appeared, who added it, and what events have already happened with the cargo.
Lesson 2: What blockchain is and how it works 03.05.2024 ReadAt the same time, it is important to keep in mind that corporate logistics more often uses private and consortium blockchains managed by a limited circle of participants. Such a format gives companies control and privacy but makes decentralization more nominal.
However, for businesses this is often a workable compromise, because a fully open network combines poorly with commercial data, routes, contracts, and internal processes.
In practice, blockchain is used where it is necessary to record an event and make it verifiable for several parties:
- tracking containers in real time;
- verifying documents and certificates;
- confirming the origin of goods;
- automating arrangements between participants in the chain.
A smart contract, in turn, adds executable logic to the blockchain. It is a programmable agreement that automatically triggers when predefined conditions are met.
For example, if the blockchain records what happened with cargo, a document, or a payment, then the smart contract can determine what action should follow next. In logistics, this could be a payout, confirmation of a delivery stage, the launch of the next operation, or a notification to participants.
A similar scheme can work in supply chains. Cargo is equipped with IoT sensors that record location, temperature, humidity, or impact load, and this data is linked to blockchain transactions. A condition is entered into the smart contract in advance, for example a payout if a container is delayed by more than 24 hours. If the sensor data confirms a breach of the condition, the contract automatically activates the payout or another action the parties agreed on in advance.
However, in reality such solutions depend on data quality and the participants' readiness to work in a shared system. Sensors must transmit reliable information, platforms must be compatible, and companies must agree in advance on the rules, roles, and responsibilities.
That is why blockchain and smart contracts in logistics should be viewed as a pair — blockchain creates a verifiable history of events, while a smart contract helps translate that history into action.
Real-world cases of blockchain use in logistics
The practical benefit of blockchain in logistics is better seen through concrete examples. In some cases the technology helps track a product's origin faster, in others — to convert documents into digital format or to create a shared data source for participants in the chain.
One of the best-known examples is Walmart × IBM Food Trust. In 2016, Walmart and IBM tested blockchain on a batch of mangoes. Whereas tracing the source usually took almost a week, after switching to blockchain it shrank to roughly 2.2 seconds. Later, authorized participants across the supply chain joined the Hyperledger Fabric-based Food Trust network, so customers only had to scan a QR code to see a product's path from «field to shelf».
Another interesting project is GSBN, the Global Shipping Business Network. This network is developing in maritime trade and focuses on electronic bills of lading, trade, and cargo deals. Its logic is built around individual operations, where it is especially important for participants to have a shared and verifiable data source. Such a format looks more realistic for the industry than an attempt to immediately unite all players into one universal system.
Another telling case is CargoX. Here blockchain is used for digital document flow in international trade. The platform works, for instance, within the Egyptian Advance Cargo Information system, through which companies submit documentation to NAFEZA. According to CargoX, the platform has processed more than 12 million documents and is used by more than 160,000 companies.
Worth mentioning separately are Honeywell Aerospace and GoDirect Trade. In 2019, Honeywell launched the GoDirect Trade platform for trading aircraft parts. Each part received a digital trail to which documents, origin, and FAA Form 8130-3 certification are tied.
These cases show that blockchain works best where there is a clear applied task — to track a product, confirm a document, simplify cargo release, prove a part's origin. The more precisely the problem is stated, the higher the chance that the technology will deliver a real effect.
Why do some large projects shut down?
Blockchain in logistics also had high-profile failures, without which the picture would be incomplete. They matter no less than the successful cases, because they show the limits of the technology and help explain why the market has become more cautious about big infrastructure promises.
The most telling example is TradeLens. Maersk and IBM launched this platform in 2018 and shut it down in 2023. The reason was insufficient commercial viability. The platform may have been technologically strong, but it failed to achieve the level of industry cooperation needed for a large-scale effect.
A similar conclusion can be drawn from the already-mentioned story of AXA Fizzy. This Ethereum-based insurance product automatically tracked flight delays and triggered compensation payouts without a customer claim. The mechanics were clear and illustrative for smart contracts, but the product was shut down due to weak demand.
The conclusion from these examples is quite important — the technology can work, but the commercial result turned out to be weaker than expected. That is why the industry has gradually shifted from the idea of a single large platform toward narrower and more manageable solutions — compatible APIs, electronic documents, data-exchange standards, and consortia with clear participation rules.
It is also worth keeping in mind that some of the advantages often attributed to blockchain are in practice delivered by ordinary digitalization. When companies move away from paper, synchronize data, and convert documents into electronic format, they already gain faster processes and less manual work. Blockchain can amplify this effect, but on its own it does not replace the basic digital infrastructure.
The advantages and limitations of blockchain in logistics
Blockchain in logistics addresses several problems that have long held the industry back: delays, fraud, paperwork, and the weak transparency of supply chains. Its value lies not only in speeding up individual operations but also in the fact that it changes the order of data exchange between participants.
What are smart contracts? 06.01.2024 ReadThe main advantage is transparency and traceability. All participants can see data about the cargo at any moment. Each stage is recorded in the ledger with no ability to hide or rewrite an entry. This reduces the number of errors, disputes, and manual reconciliations.
Another effect is the reduction of costs and paperwork. Documents are created, signed, and verified digitally, without constant duplication and forwarding between parties. According to McKinsey, switching to electronic waybills could save up to $6.5 billion a year and add about $40 billion to global trade turnover.
Related to this is the speeding up of processes. A single ledger is updated almost instantly, so some operations no longer require manual confirmation. According to DHL and Accenture, blockchain can cut order-processing time by up to 65%, and manual data entry by roughly 80%.
Worth highlighting separately is the fight against counterfeiting. The immutability of records is especially important in pharmaceuticals, electronics, and other fields where a product's origin is directly tied to safety and trust. According to OECD and EUIPO, in 2021 global trade in counterfeit goods amounted to about $467 billion — that is 2.3% of world imports.
But these advantages do not yet make blockchain a mass-market solution. In 2026, the technology works primarily in pilots, large holdings, and intergovernmental corridors. For small and medium-sized businesses it remains complex and expensive. In practice, adoption is held back by several barriers.
- high costs. Developing a platform, integrating with existing IT systems, training staff, and ongoing maintenance can cost millions of dollars;
- incompatibility with legacy systems. Logistics still widely uses ERP and warehouse software from the 2000s, so adopting blockchain often requires not a point update but a rebuild of processes;
- the absence of unified standards. International shipments pass through different regulatory zones. Without agreed protocols — especially among the EU, the US, and Asia — end-to-end use of the technology remains difficult;
- unequal access to technology. Small carriers and brokers often have neither the team nor the budget for full-fledged digitalization, so they cannot adopt such solutions on par with large players.
As a result, blockchain is adopted not in a leap but point by point — where it can be embedded into already-ongoing digitalization and where the economic effect is sufficiently obvious. For now, this is not a universal solution for all of logistics but a tool for segments of the chain where transparency, trust, and data synchronization are especially important.
Source: Incrypted
Новости в мире криптовалют
Random quote about money
"Делать деньги без рекламы может только монетный двор."
Interesting posts in other sections of the blog
* to search the proxy database, just enter a country name, e.g. Russia, USA, Thailand