Blockchain technology has proven to be clear and could create international trade clear and even safer.
Since time immemorial, technological innovations have formed the structure of commerce and trade. the invention of electricity inspired mass production and therefore the advent of steam engines ushered in an era of mechanized production.
From info to communication, technology has been used all over to form life easier. For this reason, blockchain technology has been abroach by many because the next massive factor, considering its use cases that cut across varied trade verticles.
Mainly utilized in keeping records of transactions, blockchain technology is a style of distributed ledger technology.
Blockchain makes a difference
According to Statista, blockchain makes keeping data records easier, more clear, and even safer. Owing largely to its resistance to alteration, blockchain offers time-based data on transactions, whether they are between personal people, corporate entities, provider networks or maybe a world provide chain.
It is conjointly a common notion that blockchain is barely a technology for Bitcoin (BTC). However, that assumption couldn't be additional wrong. whereas the technology emerged aboard Bitcoin in 2008, however, today, its use cases have evolved so much on the far side cryptocurrencies. From finance to e-commerce, food safety, balloting exercises and supply-chain management, its applications cut across nearly all sectors of the world economy, together with areas directly or indirectly coupled to international trade.
The value chain hooked up to international trade may be a notably complicated one. whereas its transactions involve multiple actors, its alternative aspects like trade finance, customs administration, transportation and provision all enjoy the adoption of blockchain technology.
According to Statista, cross-border payments and settlements account for the biggest use cases of blockchain technology, particularly considering however there are various past efforts to digitalise trade transactions.
As of today, the potential of blockchain to reinforce the potency of trade processes is already being explored. for instance, the blockchain project Open food chain is functioning to enhance food security via its Komodo smart Chain.
( Wahid Pessarlay, Cointelegraph, 2022 )