Seamlessly Accelerating International Trade Flows and Blockchain
Nov 23, 2017 Posted / 3613 Views
Blockchain, the underlying technology scripting the global success of cryptocurrencies, has now become a topic of hot debate among the government and major corporate players across the globe. Today. Blockchain technology is been warmly embraced by the different segments of our digital society. Like the banking sector, where top banks are investing in this technology to secure their customer's data. The aviation sector is also a beneficiary of the Blockchain technology, for modernizing the process of e-ticketing. The Blockchain has changed the way people pay off their bills at the malls, by powering Bitcoin, world's largest virtual money.
The blockchain is a public, distributed ledger, which can store all kinds of data, right from the details of a Bitcoin transaction to holding data of an individual for an airline company. The Blockchain ledger is fool-proof, means the data once stored cannot be manipulated-either changed or deleted. This is one of the major reasons for the explosive popularity of this technology. The best part of a Blockchain network is, there is no single point of failure, to boil down, a hacker, who is planning to get hold of the Blockchain ledger data needs to attack all the computers in the networks, which can be in hundreds, thousands or millions- in order to bid for a successful hack. In simple words, this is next to impossible, even from the best guys in the hacking industry. Therefore, the reason, why we haven't heard any story of Blockchain network scams and frauds,
Amidst the digitization of the world, the international ties for trade have been on surge, since nations which were earlier on different pages are uniting to economical help each other. For the year 2014, the international trade crossed the mark of $13 trillion. However, the flow of international trade is hindered by the paperwork, in terms of money and time, and both these entities are of significant importance. Let's take an example, for an airfreight, there are about 20 documents required by most nations on the globe, this process consumes a lot of time, and time for international trade flow is directly proportional to money.
Among hundreds of breakthrough innovation, since the emergence of the Internet, Blockchain technology stands tall. It is a transparent ledger, which validates cryptocurrency transactions, without the use of a centralized database. Blockchain drew great attention, with its debut with Bitcoin in the year 2009, and today powering more than 800 digital money, including the Bitcoin. Blockchain bigger impact comes with top players- businesses and financial institutions, showing immense interest and great trust in this technology. Today, the banking ecosystem is employing this technology to cut the role of middlemen in financial transactions. Whereas, the aviation sector investing on this technology to make their airline data more auditable and secure, since, with the rise in the global terrorism, the safety of the crew members and passengers are an absolute must. Because of the Blockchain technology, offer a distributed, public, ledger that doesn't call for trust or coordination between the sender and receiver party, it ensures, secure, standardized across the border transactions to be done and dusted in no time.
A few days back, experts from WEF and IBM, said in a statement told the media that the Blockchain technology will redefine the model of international trade flow for the betterment, improving the ties between nations. This technology has in it to smoother the work-flow of cross-border trading transactions and ease up the process of inter-country document approval.
Ramesh Gopinath, the Vice President of the IBM solutions, some time back tie put forth the factors standing against the international trade flow. According to him, the traditional approach of the supply chain, where the large volume of paper documents are always vulnerable, inviting human errors, fraudsters, and inadvertent delays. Furthermore, the administrative cost associated with the processing, verifying, and securing the critical trade documents are on the higher side.
This is what welcoming, the Blockchain technology in the process of International trade, supply chain and logistics expert Wolfgang Lehmacher believe. He further added, slowly yet steadily, this technology making inroads in the good transport sector via financial instruments, like the digitization of the conventional paper documents, letters of credit, etc.
Several eminent names in the good transport sector are testing the Blockchain technology for the future, the Danish shipping player, Maersk, recently inked a deal with IBM to analyze the future of Blockchain-based approach in tracking shipments. Every ledger, a London-based startup is also piloting the use of Blockchain technology to guard its valuable asset like the diamonds.
From the above, it's quite clear that the Blockchain will redefine the length and breadth of the International trade for betterment, by easing the documentation work for freight companies.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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