Blockchain in International Trade
The extensive acceptance of Blockchain in international trade will help in decreasing the friction in the international economy. International trade moves billions of dollars of goods everyday, from one part of the world to another. According to the A.T. Kearney 2017 State of Logistics Report, the global container shipping capacity has grown 148% in the last 10 years.
International trading involves many participants all around the globe. These participants may not necessarily have the needed trust of all parties, especially at the initial stages, when newcomers join the trade. Blockchain can provide the needed trust to capture key transaction activities as immutable records, as well as storing and sharing encrypted legal and financial documents. Because blockchain provides a distributed digital record that does not require trust or coordination between firms, it allows for secure, standardized transactions to occur almost instantaneously, even across borders.
Since the introduction of Blockchain and AI technology, many companies have gained confidence that it is possible to have faster and efficient workflow in cross-border trade which can help in improving overall customer experience without compromising the safety of sensitive information. Within the international trade and finance sector, importers and exporters need to better streamline their payments and documentation flow.
The widespread adoption of blockchain would reduce friction in the global economy. Blockchain can serve as a single, transparent and secure network, and make it visible to buyers and sellers. Visibility of transaction records and documents are tightly controlled by blockchain, permitting sharing only among entrusted and allowed parties. IBM is working on trade-related blockchain technologies with partners including Maersk and Walmart. In this demo, IBM demonstrates how blockchain may support such an application.