• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Sponsored

Are Blockchain Solutions Really Expelling Brokers?

Guest Author by Guest Author
3 years ago
in Sponsored
Reading Time: 4min read
fr8, logistics, trucking
Advertisement
Nexo Logo
Listen to Article

Blockchain businesses, like many other startups in the digital world, choose to boast of expelling middlemen and intermediaries. But sometimes intermediaries add real value to their industries. And sometimes they outlive their usefulness and create unnecessary economic distortion and inefficiency. More often than not, intermediaries in disrupted industries occupy an ambiguous zone between these two poles.

Uber, for example, has disrupted the taxi industry in London by connecting ride-hailers and drivers directly, cutting out taxi companies and certification requirements. But taxi drivers have pushed back, pointing to the legendary “The Knowledge” test that aspiring taxi drivers must pass to gain accreditation. This rigorous exam requires London taxi drivers to memorize thousands of street names, points of interest, and routes by heart, rending them efficient navigators even without GPS. Without taxi companies and accreditation providers serving as an intermediary, they argue, London’s ride-hailing industry would be overrun with inefficient navigators. Similar ambiguity over go-betweens’ new place (or lack thereof) exists in multiple fields experiencing technological disruption.

Fr8 Network is a new logistics startup that’s disrupting the freight trucking industry. This massive sector serves as the U.S.’s economic backbone, transporting 80% of all overland cargo. But it’s currently experiencing a “capacity crunch” as demand expands while talent supplies run short, and it needs to become more efficient to handle increased capacity. Fr8 Network’s blockchain-based platform will improve efficiency and working conditions in the trucking industry in a way that does impact freight brokers. But it’s an oversimplification to say brokers are going to go extinct.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Brokers in the Freight Industry

The freight industry is highly fragmented. 97% of truck companies operate 20 or fewer trucks, while 90% operate less than six. Many are owner-operators using only one vehicle. These carriers have traditionally used brokers to connect with shippers trying to move merchandise from one point to another. Brokers essentially match-make between suppliers and carriers and take a cut of carriers’ revenues in return. Broker fees currently comprise about 30% of typical shipping costs.

Brokers used to be an absolute necessity of the freight world–without them, there were no ways for carriers and shipper to find each other. But despite their fees, brokers’ abilities to efficiently make connections are limited. One broker might know of a shipper who needs goods moved from point A to point B, while another broker might know of a shipper who needs goods moved from point B to point A. One carrier could easily handle both of these shipments, but they only get access to knowledge about one of them through their chosen broker.

The result is a carrier who carries goods one way but has an empty load the other way. These “empty miles” are the scourge of the trucking industry. Owner/operators and carriers working for small businesses often get paid little or nothing for driving empty miles, even if they’re essential to completing a delivery. Empty miles drive up the environmental footprint of the entire trucking industry. They’re dangerous: empty trucks are more than twice as likely to crash as loaded ones. And they do nothing to help the trucking industry’s capacity crisis. The American Trucking Associations estimate that the trucking industry could be short 174,000 jobs by 2026 if hiring and demand trends continue. Empty miles exacerbate this shortage by decreasing the average capacity each trucker can handle.

Fr8 Network

Fr8 Network proposes a blockchain solution to empty miles. Their central platform is the Fr8 Board. On this job board, carriers, shippers, and brokers can post their shipping needs or available truck capacity. A bi-directional matching engine helps carriers find freight to carry on each leg of their journey. Blockchain-based Fr8 Tokens memorialize shipping agreements made on the Fr8 board in an immutable blockchain ledger, while smart contracts in the tokens automatically move funds into escrow when an agreement commences and can even automize settlement once a shipment concludes. The platform protects itself from spam accounts by requiring a small buy-in of Fr8 tokens to participate, and users leave reviews for their shipping partners so all participants can gauge future potential partners’ trustworthiness.

Broker Elimination?

Will this system eliminate trucking brokers? Fr8 Network argues no–in an industry that needs to fill a talent shortage and ramp up capacity, there’s still a place for the industry expertise and skill sets of brokers. What Fr8 Network will do is eliminate the stranglehold brokers–and particularly large and expensive brokers–have over data on shipping/carrier arrangements. When shippers and carriers can directly find and reach out to each other, there’s no longer a premium on services providing that connection.

Instead, brokers of any size can operate the Fr8 Board on behalf of clients, leaving shippers and carriers more time to carry out their tasks efficiently. Brokers can also offer value-added services such as providing credit and risk management for their clients. Fr8 Network anticipates that broker fees’ share of the average shipping cost should shrink immensely, from 30% to less than five.

Blockchain disruption doesn’t always kick intermediaries out of their industry. Instead, it can make them more valuable and efficient members of that industry, providing enhanced and cost-effective services once digital platforms take over and improve basic tasks. Fr8 Network illustrates how blockchain can revolutionize a sector and still keep valuable intermediaries in-the-loop.

Tags: blockchainfr8 networklogistics
TweetShare
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Guest Author

Guest Author

Related Posts

Folgory

A Debit Card for Your Coin with Folgory

10 hours ago
OWNR Wallet

OWNR Wallet Ends 2020 With the Launch of VISA Prepaid Crypto Card and its Own Crypto Exchange

2 weeks ago
BIG2.WIN: Play One of the Most Familiar Games in a Crypto Setting

BIG2.WIN: Play One of the Most Familiar Games in a Crypto Setting

2 weeks ago
yfdai finance, safeswap. yfdai launchpad

YFDAI Finance on Path to Push DeFi to the Limit, Starting with SafeSwap and Launchpad

2 weeks ago
crypto.com

Best Ways to Buy Bitcoin on Crypto.com

2 weeks ago
ttm bank

TTM Bank Launches Global Crypto Card

2 weeks ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

SV-based Taraxa Revolutionizes Legacy Data Auditing With Mathematically Provable Audit Trails

January 15, 2021

Kickoff Your DeFi Journey With YOYO FINANCE – Their Token Sale Is Live

January 14, 2021

RAI Finance Pre-sale Finishes in 1 Minute

January 13, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.