USE CASE N°05
Flow of goods in international trade is accompanied by the flow of information, documented at various stages of supply chain by a number of agencies supervising and/or involved in expediting of goods. Despite the large volume of records certifying physical security, property ownership, transfers, and subsequent conditions of the goods, ability of obtaining a real-time snapshot of the condition of cargo at any given point in time, with reference to these documents, is cumbersome and filled with loopholes, open to exploitation.
Common inefficiencies include:
- Between the control points, cargo remains largerly unsupervized and its real-time condition unknown (or can be ascertained by exerting massive and laborious effort)
- Criminal syndicates taking advantage of this loophole to manipulate cargo or divert containers undetected
- Difficulty in establishing the party responsible for breakages or changes to cargo in ensuing disputes
- Identification process to establish the owner of the shipped goods is not ergonomic. This creates inefficiencies for both the owner and the authorities
- Persistent risk of loss of documentation, leading to suspension of cargo
In basic terms, the deficiencies of the current situation, as described above, stem from the fact that the physical goods and information about their status remain asynchronous. RIDDLE&CODE, the blockchain interface company, provides a solution that unifies the physical status of goods with their informational flow in an integral way using blockchain technology. This is done by means of connecting the package/container to a RIDDLE&CODE cryptocomputer, which comprises the following technology:
- A microcontroller – that can run blockchain algorithms
- A crypto chip
- Active NFC transponder
- Compatibility with multi RF stack: Lora, Zegbee, Sigfox, etc.
- Ability to connect to accelerometers, thermostats and GPS locators
The RIDDLE&CODE microcomputer reads, collects and communicates the information regarding transported package/container to the blockchain in real-time.
Potent combination at the core of the RIDDLE&CODE microcomputer allows tracking of a number of security anchors, including location, temperature variances, container access, etc. In addition, the changes in property ownership can also be recorded onto the blockchain, overcoming a cumbersome process of owner identification at various stages of transit.
The legitimate owner can then be provided with a physical token connected to the blockchain to securely access the information, trade the contents of the container as well as claim the contents of the container.
In one of their latest reports („Continuous interconnected supply chain Using Blockchain & Internet-of-Things in supply chain traceability“), Deloitte Luxembourg states: „We have seen that supply chain is facing major challenges today, and will face more tomorrow. The demand for transparency and traceability has increased over the past few years as a direct consequence of the different food and automotive scandals that shook their respective industries.“
The solution is found in blockchain technology and IoT. As a trustworthy partner Deloitte names RIDDLE&CODE and our distributed ledger technologies for data and communication security. (FIND THE FULL REPORT HERE)
Example 1: recording the exact circumstances when a container’s content is opened
- RIDDLE&CODE hardware gets connected vía the I2C socket to a padlock
- Owner of the container holds a token which allows to open the container. The circumstances under which the opening is done is registered into the blockchain (GPS location, time, etc.)
Example 2: tracking the shipment of a package as it moves along the supply chain, passing through multiple carriers
The IoT enabled container transmits required and immutable status information during transport and shipment which is recorded in the blockchain.
RIDDLE&CODE hardware gets connected vía I2C socket to a temperature sensor, enabling it with a unique tamper-proof identity, securing the data and the exchange of data. It deters frauds and brings transparency to the entire supply chain.
If the temperature of the container deviates from a set degree celsius, then the container must be inspected. The party responsible for the container at that time of the temperature is held accountable for all losses.