Blockchain is one of those top strategic priorities we all keep reading about. And the interest in it is growing; at 43% in 2018, blockchain is now a top priority for 55% of global businesses (according to Deloitte’s 2020 Global Blockchain Survey).
But – and this is a big one – one of the greatest barriers to adoption is a lack of governance frameworks (also from a Deloitte study, 2019).
So why not use existing tech for our logistic needs, and why blockchain? What we have now works pretty well now, right?
Well, sure, until it doesn’t, and we’ve all heard the grim stories about failures in our supply chains. The regulators have taken note, because the FDA is requiring new levels of track and traceability of our suppliers and carriers. So is the EU.
Though bitcoin gets quite a bit of press for its on-chain governance, in reality, many businesses just aren’t ready to bet the farm on such an open-to-all ledger. In some cases, and in some industries, too much sharing is prohibited – for antitrust reasons, or because of privacy concerns. So we need good governance.
It may sound scary, but it’s actually pretty straightforward. Governance is about agreeing – upfront – on rules, processes, and what to do when things go wrong. Governance helps set the game rules, so we all know how to play. We need this, because blockchain changes the business model from competition to cooperation and collaboration. And you cannot collaborate if everyone is playing with a different set of rules.
DFM Data gets this, and this is why they’ve spent much of their early efforts in getting the governance right for the digital freight matchers, or DFMs, to comfortably collaborate. With a solid and fair structure in place, the industry – the entire industry – gets a lift from clean and reliable data. Most consumers wouldn’t put up with a 30% error rate in their credit reports or their medical data. DFMs aren’t any different. They can do their jobs best if they have all better information.