Global economy is highly dependent on global trade. However, for a long time global trade has been characterized by physical movement of papers and goods through different mediums which is less secured, less transparent, and very tedious. With the introduction of Blockchain, global trade is beginning to take a new turn. More and more companies are collaborating with Blockchain based platforms to bring effectiveness transparency and security to transactions across different borders on the globe. If these collaborations continue to increase, global trade is set to quadruple by the year 2030.
Sometimes in 2017, the shipping industry which is a notable industry facilitating global trade had one of its largest shipping company launch a Blockchain project. Maersk and IBM are also coming into a joint venture that applies Blockchain to global trade. In this same manner, more and more Blockchain based collaborations are ongoing, with a few others still to come up. This is why the most important question to ask is; how can Blockchain fast track global trade to a quadruple state in 2030?
Blockchain Saves Time and Cost
The traditional manual way of global trading requires much documentation which usually costs a whole lot of time and money to effect and maintain. A lot of papers need to be signed and forwarded from person to person, approved by another before trading activities take place. With Blockchain collaboration, a new workflow is introduced. The Blockchain is programmed in such a manner as to allow for easy flow of activities in the most effective and quick manner. This is helpful in checking time used, and cost implied. Working on Blockchain will mean more trade will be done in the shortest of time which is a sign that global trade is at the edge of a boom.
Blockchain Is More Secured and Transparent
Security in global trade is well enhanced on Blockchain because it uses the smart contract which is programmed to aid transaction payment free from any sort of hacks or fraud human errors can produce. Blockchain facilitates payments in such a way that traders are able to know who they are trading with. With Blockchain, traders who put forth their products for sale are being scrutinized, and proof of manufacturing process is being put out. Transactions on Blockchain are kept as records and can be traced at any point in time. This way, trust, transparency, security and efficiency are all introduced to global trade through Blockchain technology.
The more countries accept this Blockchain technology, the more trading activity is being facilitated with and in that country. Notwithstanding, there is still more technical barriers to be ironed and fixed before Blockchain can effectively claim mainstream. On Blockchain improvement, innovations are being put in place from time to achieve that. If there’s a wide acceptance of Blockchain technology, and more trading companies continue partnering with Blockchain based platforms, global trade is not just going to be more effective, more trustworthy, more transparent and most secured, it is set to quadruple by the year 2030.
Visit TIM website for the latest blockchain project: https://www.talking.im/