resort to the blockchain which bears the synchronized characteristics of a
decentralized system complete with immutability which is of benefit to all parties
to a transaction. Blockchain provides real-time, tamper-proof, definitive information
regarding consignments including their locations, condition and history.
It must no doubt be conceded that expanded transparency attracts higher accountability. Information cannot simply be communicated by one party in the chain to its
immediate counterpart but is shared by all parties to the transaction simultaneously.
The information in question does not only address customer complaints but also
legal concerns, especially regulatory requirements. An essential aspect of transparency is that every user has access to all information in the system concurrently and in
the same way, and the accuracy of it can be verified by any participant making the
whole transaction and process distinctly visible and trustworthy.
53
6.3.4 Security and Documentary Fraud
In the current milieu of paper bills of lading, producing fraudulent bills is not a very
difficult task. As explained earlier, a key feature of blockchain architecture is its
immutable character which virtually guarantees that nodal data on the blockchain
cannot be altered. Furthermore, blockchain networks can be set up as private
networks requiring permission to enter. Network access can thus be restricted
whereby security is considerably heightened. Thus, instances of issuing fraudulent
bills of lading can be reduced as well as the circulation of indefinite copies of bills of
lading giving rise to potential fraud. The built-in cryptographic protection system in
blockchain bills of lading make them virtually tamper-proof. The use of a private key
for signing into each transaction which is in the possession of each participant in the
blockchain bill of lading, makes for a high degree of protection. Signing into every
transaction requires each participant to conform to several requirements during the
process and the blockchain technology provides for every participant to log in which
potentially prevents such unlawful activities as money-laundering and makes the
system conducive to greater transparency. Each transaction requires public timestamping and is inherently revision-proof as a part of the architecture of the
technology.
6.3.5 Jurisdiction and Governing Law
Among the cons, one is the issue of jurisdiction. Because it is a decentralized system
without any fixed single location, it becomes important to be able to determine the
law and the jurisdiction that governs the technology, and the data stored in the
system, especially where the processing of the data can be instigated from anywhere.
53 Ibid.
430
H. Liu
decentralized system complete with immutability which is of benefit to all parties
to a transaction. Blockchain provides real-time, tamper-proof, definitive information
regarding consignments including their locations, condition and history.
It must no doubt be conceded that expanded transparency attracts higher accountability. Information cannot simply be communicated by one party in the chain to its
immediate counterpart but is shared by all parties to the transaction simultaneously.
The information in question does not only address customer complaints but also
legal concerns, especially regulatory requirements. An essential aspect of transparency is that every user has access to all information in the system concurrently and in
the same way, and the accuracy of it can be verified by any participant making the
whole transaction and process distinctly visible and trustworthy.
53
6.3.4 Security and Documentary Fraud
In the current milieu of paper bills of lading, producing fraudulent bills is not a very
difficult task. As explained earlier, a key feature of blockchain architecture is its
immutable character which virtually guarantees that nodal data on the blockchain
cannot be altered. Furthermore, blockchain networks can be set up as private
networks requiring permission to enter. Network access can thus be restricted
whereby security is considerably heightened. Thus, instances of issuing fraudulent
bills of lading can be reduced as well as the circulation of indefinite copies of bills of
lading giving rise to potential fraud. The built-in cryptographic protection system in
blockchain bills of lading make them virtually tamper-proof. The use of a private key
for signing into each transaction which is in the possession of each participant in the
blockchain bill of lading, makes for a high degree of protection. Signing into every
transaction requires each participant to conform to several requirements during the
process and the blockchain technology provides for every participant to log in which
potentially prevents such unlawful activities as money-laundering and makes the
system conducive to greater transparency. Each transaction requires public timestamping and is inherently revision-proof as a part of the architecture of the
technology.
6.3.5 Jurisdiction and Governing Law
Among the cons, one is the issue of jurisdiction. Because it is a decentralized system
without any fixed single location, it becomes important to be able to determine the
law and the jurisdiction that governs the technology, and the data stored in the
system, especially where the processing of the data can be instigated from anywhere.
53 Ibid.
430
H. Liu