A Case Study of How Maersk Adopts Cloud-Based Blockchain Integrated with Machine Learning for Sustainable Practices
Abstract
:1. Introduction
- Security: There are two parts, namely header and body, in each block in the blockchain. The header contains a hash of its previous block, a timestamp, and a root of the Merkle tree. These three components are used to identify each block in the blockchain. The hash can represent the cryptographic signature which can be used to validate transactions stored in the body. The root is built by a cryptographic method based on a Merkle tree [4], which is a data structure that can verify the block body transactions efficiently [5]. As an example, the security feature of the blockchain application developed by IBM Food Trust, JD.com, Tsinghua University, and Walmart ensures safety and security in its food supply chains in China [6].
- Decentralization and shareability: When creating a transaction, that transaction is recorded in the body of a block and replicated. This replica is then distributed, shared, and agreed upon among the stakeholders involved in the transaction in a blockchain network. The blockchain network is a peer-to-peer (P2P) network in which all the involved stakeholders are peers who have the same privilege. There is no centralized control of distributing and sharing transactional activities in that network. As an example, the decentralization and shareability features of the TradeLens blockchain used by Maersk allow the exchange of supply chain documents (e.g., bills of lading, letters of credit, and forwarders’ certificates of transport) among a large variety of supply chain stakeholders (e.g., banks, suppliers, port authorities, and buyers) [3].
- Immutability and trust: Immutability refers to the situation that a validated transaction record cannot be updated or changed in any way. If modification or correction on the validated transaction record is necessary, a new transaction that issues the modification or correction is created, recorded, and validated in the blockchain P2P network. Each block timestamps transaction records, stores the records securely using public-key cryptography, and validates them. In this way, the transaction records can be verified and trusted by the stakeholders involved in the transactions in the blockchain P2P network [7]. For example, Energy Blockchain Labs in China has developed a blockchain platform that helps organizations in the supply chain to build trust among themselves by monitoring carbon footprints ad meeting carbon emission reduction quotas [8].
- Traceability and transparency: The stakeholders involved in the transactions can duplicate and distribute their transaction records in a traceable and transparent way [6,9] as their transaction records are hashed, timestamped, and stored in a block and can be confirmed through the consensus mechanism by all the involved parties in the blockchain P2P network [10], imposing impossibility for reversing the blockchain’s entire historical transaction records under the scrutiny of all the stakeholders who can access the distributed and shared transaction records [11]. For example, the traceability and transparency features of SAP’s blockchain hub help to reduce the cost of tracing medical products in supply chains [12].
- Exploration of the technical sustainability of CBML in supply chains is important as its findings are expected to provide new knowledge that facilitates the sustainable development and implementation of CBML in supply chains.
- The technically, environmentally, economically, and socially sustainable practices found in this study are expected to provide a reference for more and more use cases of CBML.
2. Literature Review
- Studies published in books, journals, and conference proceedings starting from 2017 (the year when the publication on the application of the new blockchain technology in the supply chain area was first founded);
- Studies using CBML for supply chain management; and
- Studies related to the issues of technical sustainability, environmental sustainability, economic sustainability, and social sustainability.
3. Methodology
- Blockchain—This Microsoft Azure cloud service allows a user to join a blockchain consortium or provides the APIs for the user to develop a blockchain.
- Compute—Compute is a cloud service that allows a user to deploy and run cloud-based applications. On-demand computing resources, including processors, memory, storage, operating systems, and networking facilities, are then allocated for running these cloud-based applications. The computing resources are automatically scaled up or down depending on the requirements of the cloud-based applications.
- Internet of things (IoT) hub and service bus—These cloud services collect and aggregate data with high network throughput.
- Transaction builder—This cloud service assembles data and transforms the data into transactions in a standard format.
- Storage—This provides scalable cloud storage. It also supports big data projects. Furthermore, this service contains off-chain storage and database which can offload the data retrieval from the blockchain network and provide an easy way for data scientists to retrieve blockchain transactions.
- Distributed ledger technology (DLT) watcher—This cloud service monitors events on the blockchain network and studies their patterns to detect and stop malfunctions.
- Machine learning tools—These tools facilitate data scientists to build machine learning models and perform simulations.
- Networking—Virtual networks, dedicated connections, and gateways are included in this service. It also provides load balancing and hosting.
- Security—This provides capabilities to protect a network against attacks, authenticate user identities, and manage encryption keys and encrypted transactions.
4. Findings and Discussions
5. Concluding Remarks and Implications
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Articles | Relevance |
---|---|
Saberi et al. [8] and Varriable et al. [7] |
|
Wong et al. [3] |
|
CBML Features | Technically Sustainable Practices |
---|---|
Microsoft Azure cloud technology’s scalability. |
|
Machine learning integrated into Microsoft Azure cloud technology |
|
Use Cases | Environmentally Sustainable Practices |
---|---|
CBML processes of keeping track and sharing of the shipment risk records |
|
Guiding a ship to safe zones by machine learning in CBML |
|
Immutability of shipment risk records in CBML for the efficient processing of claims assessment and payment |
|
Allocation of on-demand computing resources by CBML |
|
Use Cases | Economically Sustainable Practices |
---|---|
Efficient processing of claims assessment and payment by CBML |
|
Computation by machine learning on the geolocation data from GPS sensors and immutable historical shipment route records |
|
On top of CBML, RCM for the customers to keep track of containers’ locations and conditions and adjust the settings on the containers |
|
Operational expenditure for CBML |
|
Use Cases | Socially Sustainable Practices |
---|---|
Location of safe zones for shipments by CBML |
|
Immutability of shipment route records generated by CBML and stored in the blockchain network |
|
The control through RCM to monitor the conditions of the products, especially food, inside the containers |
|
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© 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/).
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Wong, S.; Yeung, J.K.-W.; Lau, Y.-Y.; Kawasaki, T. A Case Study of How Maersk Adopts Cloud-Based Blockchain Integrated with Machine Learning for Sustainable Practices. Sustainability 2023, 15, 7305. https://doi.org/10.3390/su15097305
Wong S, Yeung JK-W, Lau Y-Y, Kawasaki T. A Case Study of How Maersk Adopts Cloud-Based Blockchain Integrated with Machine Learning for Sustainable Practices. Sustainability. 2023; 15(9):7305. https://doi.org/10.3390/su15097305
Chicago/Turabian StyleWong, Simon, John Kun-Woon Yeung, Yui-Yip Lau, and Tomoya Kawasaki. 2023. "A Case Study of How Maersk Adopts Cloud-Based Blockchain Integrated with Machine Learning for Sustainable Practices" Sustainability 15, no. 9: 7305. https://doi.org/10.3390/su15097305
APA StyleWong, S., Yeung, J. K. -W., Lau, Y. -Y., & Kawasaki, T. (2023). A Case Study of How Maersk Adopts Cloud-Based Blockchain Integrated with Machine Learning for Sustainable Practices. Sustainability, 15(9), 7305. https://doi.org/10.3390/su15097305