dexFreight, a startup that describes itself as a decentralized logistics platform, completed its first blockchain-based shipment using smart contracts. The dexFreight platform allowed the shipper and carrier to directly connect, negotiate rates, and schedule pickup and delivery.
The 5,320-lb frozen food shipment was hauled by Arel Trucking from Preferred Freezer Services in Medley, Fla., to Manny’s Enterprises in Sunrise, Fla. on October 15 for Netuno USA, one of the fastest growing seafood wholesalers.
“With dexFreight, we have transparency into loads we’re shipping all over the U.S. based on honest and accurate information that is beneficial for our operation and our customers,” said Luciano Bonaldo, president and co-founder of Netuno USA Inc.
Funds for the transaction were held in escrow by the smart contract on an integrated smart contract platform from RSK. Bitcoin funds were automatically released to the carrier upon delivery.
“dexFreight solves the issue of false documentation by making our transactions with shippers completely transparent, and so we can get paid for the service we provided,” said Robert J. Julia, CFO, Arel Trucking. “This technology is the way of the future for the whole trucking industry.”
dexFreight uses 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, the company says. Up-to-date profiles in the platform include all required and relevant documentation such as licensing, insurance, safety and performance records and credit history.
“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.”