Russian Railways to possibly adopt Blockchain to eclipse Road Transport

Russian Railways, the country's chief rail network operator is advised to seriously consider blockchain technology as a solution to certain issues.

By · Aug 11, 2020 . 4min read

Russian Railways using Blockchain
Photo by Egor Myznik on Unsplash

Sergey Vinogradov, the general director of the Scientific Research Institute of Railway Transport, is a fan of blockchain. He thinks the technology should be used by the Russian Railways, of whom he is an advisor to.

Vinogradov believes that blockchain-based smart contracts used in tandem with a predictive system can manage the maintenance of container trains. He also sees the applicability of blockchain in the logistics space, where buyers and sellers can manage cargo space through a platform.

“This approach implies the use of all modern digital technologies, such as a digital carriage, a digital locomotive, a trusted environment for managing smart contracts based on blockchain technology, and a predictive system for managing the transportation and maintenance of container trains.”

He thinks blockchain can play a big role in the transportation of bulk cargo by train. It would be cheaper for customers as well and would come with reduced risks. Efficient rail transport would be good for the environment as well. People will naturally stop using road-based alternatives which are currently less eco-friendly.

The Russian Railways has already looked at how Blockchain can be used to track commercial passengers who qualify for rail discounts. The Japanese rail operator JR East experimented with a crypto payments platform sometime last year. Moreover, customers could use Bitcoin to pay for their tickets.

There is plenty of scope for the use of blockchain technology in railways. From ticketing to cargo transport to maintenance, it appears as though blockchain offers a solution everywhere. The Russian government recently passed a bill that defined certain laws around crypto. Many expected the laws to be unaccommodating to crypto, but there seems to be some potential.

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