International Trade Rides High on Blockchain Technology
Blockchain technology is reshaping the world of international trade. It enables businesses to carry out transactions through trusted and transparent digital ledgers which will redefine our future.
Ever since its inception in 2008, blockchain technology has totally revolutionsed the way companies trade with each other, especially at the international level. It is being rapidly adopted by the small and medium-sized businesses as one of the most reliable mediums to facilitate financial transactions with their clients without having the need for a third party. Even traders with limited knowledge can conduct business cheaply without fear of fraud or loss with this temper-proof technology, which requires authorisation before the agreed upon process for transaction is modified.
Making transactions secure, transparent
Besides brining in transparency, making goods tamper-proof and traceability of transactions easier, blockchain is facilitating the automation of companies by helping them shift their trade processes to digital platforms. All these factors cut down costs and time and improve efficiency for companies involved in international trade. One of the game-changing implications of the introduction of blockchain technology has been the digitilisation of financial operations.
With companies doing away with manual processes and taking the help of technology, the global supply chains have suddenly become more efficient and effective, and faster. Blockchain has had manufacturers, suppliers, distributors, and customers working in unison with few trade barriers, giving international trade much-needed momentum. As per some reports, the blockchain is expected to create over $3 trillion in new trade by 2030.
Shortcomings that need attention
Though there are many advantages of using blockchain technology, there are certain grey areas that need immediate attention to make it a force multiplier in international trade in the long run. Blockchain involves cryptocurrencies and there’s no central authority as yet to keep check on transactions. Several countries are dithering over making cryptocurrencies official mode of transactions. In addition to that, diverse legal and regulatory mechanisms across the world raise legal complications for the new technology to become fully functional. Also, the new technology is considered power guzzler as a single bitcoin mining utilizes a great deal of electricity. With more countries looking to adopt blockchain technology and businesses entirely relying on it for their future transactions, serious environmental problems will arise. This fast-growing technology requires certain standardization, a certain legal framework and uniform universal policy as a guiding force to become an enabler in international trade in true sense.
However, the advantages of blockchain technology are far more than the shortcomings. There is no denying the fact that blockchain is the future of international trade and the sooner the countries come together to make its inclusion in the financial processes official, the better it is for the world economy.
Stay in the Loop with Export Portal
To find out more about how you can successfully trade at an international level and build your export and import website, make sure to check out Export Portal’s Blog Page!
Comments 1