The world is currently changing faster than ever responding to the pandemic. Technological innovation is now a pillar to manage the ‘new way of doing business’, especially when coordinating at distance manufacturing processes, workforce, logistics and synchronising Supply Chains (SCs.)
Even though multiple businesses make use of information and communication edge-technologies, the digital effort is hard to complete, as it is the case of digitalisation of trade transactions, depending still on manual-working and use of paper.
Now, organisations can count on Blockchain technology that is for sure provoking controversy, yet only some fully comprehend its capabilities; it has a long way to go yet.
Ten facts about Blockchain
· A Blockchain is a digital recording of transactions (or ledger.)
· The use of it is skyrocketing; it benefits all sectors of the industry, economy and society.
· It is decentralised, so, no single individual regulates the network.
· It can function with no need for a dominant authority or reliable mediators.
· It stores transactions in a highly secure-verifiable-validated-permanent way on a peer-to-peer basis, by using cryptographic techniques.
· It distributes and shares data along with all partakers.
· It is an ever-growing list of records combined in ‘blocks,’ chained up to each other using cryptography (reasons why it is ‘Blockchain’.)
· Once the added data is in, the Blockchain seals it, and no one can alter it.
· Blockchain is a trusted-ledger all participants can access and check at any time.
· Blockchain is transparent, highly secure, and highly resilient to cyber-attacks.
Blockchain could enhance the new generation of services.
Blockchain is triggering the attention of both, government instances and private sector; currently supporting all Economy and social divisions, from finance to SC management, e-commerce, food security, and even safeguarding your vote.
Businesses receive billions on financial support for Blockchain development; therefore, Blockchain-related patents are indispensable as Permissioned-blockchains require authorisation to transact on the ledger. Blockchain is now more comprehensive, currently used in the various areas enclosed in the World Trade Organisation (WTO).
The many uses of Blockchain
- Trade finance – Developing Blockchain apps to deliver easy-going-faster-cheaper cross-border payments, forcing well-known financial organisations to re-think the way of doing business. It improves the efficiency of trade processes and helps move towards paperless trade.
- Finance processes – Businesses are recognising Blockchain great power that facilitate SC finance, in particular letters of credit. However, companies must tackle several technical-regulatory matters required before using the technology on a wide-ranging scale.
- Smart contracts - A computer program which auto-executes, once fulfilling specific requirements, uses automate processes, to further cutting down costs. Blockchain and Smart Contracts could help to administer across border-procedures entries; trade stakeholders can offer documentation and other information to fulfil customs procedures in a more efficient-transparent-secure manner, and to improve trade-data accuracy.
- Insurance and Blockchain tech - The automation of processes when applying Smart Contracts could cut down management processes, and costs manage multinational-insurance contracts and deal with claims (e.g. projects in the maritime-insurance segment.)
- Blockchain and the e-Commerce - It is giving e-Commerce an expanding improvement, impacting present organisation’s patterns.
- Government to Government processes – Blockchain will improve G2G procedures by landing inter-managing concerns at a technical level; it will also need political willpower to generate a regulatory framework favouring paperless trade.
- Intellectual Property (IP) - Blockchain supports IP rights managed at multiple jurisdictions in a transparent-resourceful manner, supports counterfeit struggles. It provides proof of creations, existence, ownership and first use (possible on a global scale,) thereby, potentially contributing to the emergence of the Global IP chain.
- Government Procurement procedures - Blockchain could improve this kind of operations, but it is crucial to consider in detail the costs against profits.
- Blockchain helps build trust whilst enhancing SCs’ transparency.
- It opens up new possibilities for micro/small/medium-sized organisations (MSMEs) and small manufacturers from developing countries.
- Legal issues - The scaling setting up of Blockchain demands for backing up a regulatory framework that acknowledges the legality of Blockchain operations; to make clear-applicable laws, applying legal responsibility, and legalise the way to access and using information.
- The Transportation and Logistics segment represents a fruitful terrain for Blockchain deployment, given a large number of participants aboard.
Further comments: Blockchain is not a cure-all, as it has a long way to go yet. Leaders need to address many matters before using this tool on a broader degree. It is also worth pondering the benefit of a debate on the practical and legal repercussions of Blockchain in significant worldwide businesses, such as the WTO.
Only if we can create an ecosystem contributing to the constant growth of Blockchain, it can transform the international trade process drastically in coming years.
Are you addressing the many matters Blockchain imply?
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