BlockELM A Public Blockchain Freight Exchange Protocol

Abstract

Freight exchanges are central to the logistics industry, as they reduce empty runs and meet spot demands. To improve their efficiency in terms of automation and enhance trust between the participants, we propose a decentralized freight exchange implemented using public blockchains. With our solution, we also address shortcomings of public blockchains, such as scalability and privacy. We present two artifacts: a general architecture for an electronic logistics marketplace (ELM) and a concrete implementation as the proof of concept for a freight exchange. The solution is implemented using two off-the-shelf public blockchains and a public distributed file system. Additionally, we investigate the implications for the general ELM model and show that an ELM based on a blockchain can be viewed as infrastructure rather than a market participant.

Success Factors of Digital Platform Design

“…The market view uses a "(...) technological platform to match a demand and supply-side (...)" [19 p. 5285]. An example of such a market is Electronic Logistics Marketplaces (ELM) that optimize the capacity of trucks in transports through matching supply and demand between senders, shippers, and potentially 3 rd party drivers [20]. Because of that inherent structure of platforms, the concept leaves room for various business models that organize how many sides a platform has and how it generates revenue [16].…”

“…That can be done by easing the delivery of value (19) via efficiency, fast service, and convenience or decreasing search and transaction costs, e.g., price comparisons [33,46]. Next to the delivery of value, the UI design (20) and usability (21) of the platform need to be ensured [36,46]. The interface and functionalities need to be easily understood and navigable, e.g., via a simple registration process [41,46].…”