The Expansion of Blockchain into the Shipping Industry

MarinaChain's CEO, Dan Ha, was interviewed by KBS News in regard to the expansion of blockchain technology in the maritime industry. The original interview is in Korean, and a summary has been added below.

As the interest in fractional shares for high-priced artworks and real estate grows, people are also considering fractional investments of vessels which require large funds to construct. A closer look was taken at the Blockchain Week in Busan event.

It takes about two years to build a medium or large container vessel. What's more, it takes a lot of money to build a ship but 60% of the payment will be paid when you actually deliver the vessel. Therefore, medium-sized shipbuilders in Busan may fall into financial difficulties as they receive more orders.

If fractional investments are made in shipping financing which has been difficult for private investments, the shipyards will be able to secure stable vessels by securing the payment in advance.

Blockchain technology allows you to share and make transactions for vessels.

Blockchain technology also made a dramatic improvement in the management of vessels’ carbon emissions in the shipping industry.

As the operational data from vessels are organised and managed through blockchain-based big data, it is possible to check the carbon emissions of vessels in real time. Moreover, if carbon emissions are below the range, you can trade the carbon credits in the market.

“Busan has many shipping companies and since it is a city close to the ocean, there will be more synergy if related data is converged with blockchain technology.”

Various applications of blockchain technologies are introduced at Blockchain Week in Busan, taking place in BEXCO, Busan. It remains to be seen whether blockchain technology will be able to bring changes to the shipbuilding and maritime industries.

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