How Blockchain Can Transform International Trade

-

When it comes to the world economy, International Trade plays a vital role. It facilitates cross border commerce, strengthening economic relations among the participating countries. So what can Blockchain contribute in this domain? Where does it fit when it comes to international trade? To know this, we need to know the very nature of Blockchain.

What Is Blockchain?

Blockchain is a decentralized system of data storage, transmission, and security. As a concept, it has revolutionized the way data is viewed. Used predominantly in cryptocurrency transactions, blockchain employs encryption and multi-device network model to prevent data breach/hacking.

Every data is stored in millions of devices across the globe, making it impossible for hackers to tamper with them.

How Can It Better Facilitate Better International Trade?


International Trade is one of the fundamental pillars of the world economy. Experts all over the world always try to implement the latest innovations and technologies to improve trade practices. Take a look at how Blockchain can effectively revolutionize international trade:


Enhance Government Procurement

Blockchain can assist governments in managing public contracts and fight frauds. Public contracts are an integral part of government policies, and for sure, it requires high-end security system engaged in data protection.

Blockchain with its advanced encryption model can make this happen. The public contracts will remain untampered till completion, and central authorities can easily rely on this new system of data security.


Building Trust And Transparency In Supply Chain

Blockchain can promote transparency and traceability in the international supply chain. It will also prevent counterfeiting, hence establishing public trust. Like start-ups, governments can also trace the source of the traded products in order to prove its authenticity, thus ensuring ethical claims and healthy trade practices.

As an aftermath of certain scandals plaguing the food industry in recent years, many retail companies faced sudden setbacks. To prevent the same happening on a global scale, governments should turn to Blockchain technology for advanced verification and security platforms. Every blockchain application development company stores data interactions in blocks in a chain-like fashion (hence the name Blockchain). As a result, the cryptography prevents fraudsters from altering any previous entry.


Reduction In Trade Costs

Besides increasing transparency in trade practices, Blockchain can also increase payment automation, thus reducing costs on a significant scale. A number of processes like verification, networking, coordination, transportation, logistics, etc can be freed from hefty expenses, thus increasing overall efficiency.

As per studies conducted by the World Economic Forum, it was established that the reduction in costs brought about by Blockchain can result in a US$ 1 trillion worth of new trade in the coming years. So you see, how Blockchain can improve global trade processes, and hence the world economy as a whole.


MSME Participation In International Trade

Blockchain can help Micro, Small and Medium-sized Enterprises (MSMEs) to participate in global trade by facilitating access to trade finance.

It can effectively pull down the barriers that restrict small businesses from participating in global trade practices. With multi-device network model and encryption system, Blockchain can prevent hackers from tampering with these firms’ confidential data, thus increasing production and reliability.


Conclusion

So you see how Blockchain can transform international trade with its advanced data storage, transmission, and encryption systems. Companies planning on how to make a bitcoin wallet app mandatorily incorporate these features. As of today, governments are deciding on whether to incorporate blockchain in their national affairs. But given the efficiency and success rate of Blockchain in the financial sector, central authorities are gradually shifting their thoughts towards this advanced and futuristic mode of international trade practice.
Location: New York, NY, USA

Comments

Post a Comment

Popular posts from this blog

Popular Node.js Static Site Generators – PART 1

-
Image
Node.js continues to grow in terms of popularity and as a viable solution for the small and big web applications. Most of the talented developers who create node-based systems replaces some of the old guard software many of us stay aware. When it comes to CMS website design services , without any doubt we look for WordPress, prior to Joomla or Drupal. It is one of the active and reliable systems and allow people with little or no technical skills to create a website of their choice. Among the static site generator, you will come across Jekyll and Jekyll-based systems, which often the developers favor. Even at our work lab, we go for this option. Among the different static site generators that the developer favor when they look for lightweight generators to create blogs or informational sites. In this article, you will get the perfect overview of the three Node.js static site generators for all the JavaScript lovers out there. It comes straight from the Node JS Developers desk ...
Read more

Why Enhancing Customer Experience In Web Design is The New ‘Normal’

-
Image
  Before you confuse CX with UX, let us tell you that they are not the same. While UX is only about the site and how the users interact with that, customer experience is the entire matter of customer-business relationship and what kind of experience the customers will be having when they are conducting business with you. As it turns out, customer experience to some extent depends on the website too. The matter of CX is more important for success. And this importance is one of the reasons why you should be wanting to improve the overall customer experience of your website. From improving the website content to making the forms shorter, there are hundreds of ways you can change the customer experience quality a user can have on your website. If you are wondering about the benefits of improving customer experience, then you need to consider these factors- improving CX not only helps you to gain new ones but also retain the old and loyal customers, therefore increasing your revenue. Wi...
Read more

Web Design Trends You Must Follow in 2016

-
Image
“Nothing is permanent in this world,” this famous quote by Charlie Chaplin is true even in the world of web designing and development. With new inventions taking place every day or the other, and innovative thoughts taking centre stage, the era of following the traditional web designing rules is over. Rather, the trends are setting higher benchmarks in terms of website designing. The arrival of a new year has brought with itself some of the major trends that will set new paths in the designing arena. Whether it is about web design services in India or anywhere around the world, the trends will help most of the designers to take advantage of the latest happenings and help them design a website with the current updates that are happening in the designing world. Stock Photography to Replace Dull Pictures ‘Seeing is believing’ and that’s what the research done by 3M Corporation suggests. Visuals tend to process the brain 60000 times faster than text-heavy images. Though, over...
Read more