Companies Will Extinct Without Blockchain Adoption, FedEx CEO Says

Companies Will Extinct Without Blockchain Adoption, FedEx CEO Says

Companies should adopt such novel tech trends as the blockchain. Otherwise, they could see a soon end.

This is the thought expressed by the FedEx CEO Fred Smith at this week’s CoinDesk's Consensus 2018, held in New York.

The leader of the international shipping services firm believes the future is behind DLT as it can drastically change the world.

Smith: Blockchain Can Make Information Available For Everyone

Fred Smith, the leader of the US logistic titan FedEx, said decade-old companies wouldn’t survive without adjusting their business with the help of the blockchain, the Coindesk reports. The world is indeed rapidly changing, so, according to Smith, old-school companies cannot keep up with them unless they see some changes as well.

The FedEx exec also explained that the most considerable concern in the sphere of logistics and shipment is the substantial quantity of “friction” in logistics between different states. The thing is that lots of them have varied norms as well as regulations and conditions.

When taking the floor at CoinDesk's Consensus 2018 on Monday, May 14, Smith said:

"For cross-border shipments, 'trust' is a legal requirement for every transaction. What blockchain has is a potential for the first time ever to make the information available for everybody."

He also emphasized that the DLT can bring to the whole sphere of logistic what he calls “the chain of custody.”

The exec Smith summed up:

"If you are not operating at the edge of new technologies, you will surely be disrupted. If you are not willing to embrace new technologies like the internet of things and blockchain to face those new threats, you are, maybe subtly, at some point ... going to extinction."

FedEx & The Blockchain

Smith’s point of view is not a surprise as a few months ago FedEx became the part of the Blockchain in Transportation Alliance. That has been done in order to examine the prospective utilization of the DLT on par with other associates in the sphere of logistic.

And that’s not all when it comes to FedEx’s ties with the blockchain. Currently, it is known that the company has set off a pilot program to mount what data would be required for a DL to facilitate arguments between clients sending and getting items via FedEx.

Moreover, the delivery service company aims at applying DLT for preserving its records.

Other Aspects

In his turn, the company's CIO, as well as exec VP of info services Robert Carter, noted that FedEx would examine the utilization of the blockchain in the freight sphere. That’s because one ship could comprise millions of financial operations simultaneously.

Carter said that the firm carries out 12 million shipping acts per 24 hours. This number, according to his words, goes up at "rush hour" seasons. The CIO concluded that given such data the use of blockchain could really be of a good thing for the firm.

At the event, Carter was asked about how come he managed to persuade the top exec to take a look into the blockchain, to what Carter said that it was vice versa.