Blockchain was first designed to facilitate transactions with the use of cryptocurrencies. The technology involved, on the other hand, has the potential to revolutionize international trade, a $16 trillion market, through making international transactions simpler, faster, and more transparent.
In this post, we are going to see how using blockchain for business can open new markets and help international trade.
How can blockchain help international trade by facilitating business processes?
Blockchain technology has the potential to automate, protect, simplify, and eventually accelerate business processes throughout international markets. Transitioning from paperwork toward digitally traceable and legally binding documents makes industrial processes faster.
How can blockchain open new markets by facilitating customs procedures?
Costs related to acquiring foreign trade licenses, producing and ensuring the validity of merchandise and transportation papers, and completing customs declarations might be reduced by using blockchain technology. This technology has the potential to help speed up and facilitate customs procedures and thus can open new markets for international businesses. Tariffs are believed to have a bigger overall influence on global trade volumes and industrial products than these procedures themselves.
How can blockchain help international trade by Improving logistics?
Commodity trading is turning into a low-margin industrial sector as markets are becoming more automated. Merchants are progressively making big money by offering a reliably dependable logistical service between manufacturers and customers. Blockchain’s cost-cutting potential will improve profits and promote market access and therefore open new markets.
How can blockchain help international trade by improving finance?
Trade finance is one of the international trade extensions and, therefore, is subject to the same time-consuming operational procedures. The majority of trade finance requests are denied due to regulatory issues, a lack of trust, and declining margins. Many of these challenges are addressed by blockchain by verifying paperwork, simplifying policies and procedures, and allowing cooperation among different parties. Furthermore, blockchain can help open new markets by expanding funding options for small and medium businesses.
How can blockchain help international trade by facilitating post-trade settlement?
Existing trading procedures are often seen as ineffective because they include too many mediators, are vulnerable to settlement risks, and have unexpected and time-consuming settlement cycles. Blockchain technology has the ability to significantly streamline the sequence of post-trade activities by ensuring and supporting the consolidation of securities registries and it also enables faster execution and lower transaction costs.
How can blockchain open new markets by facilitating track and trace in supply chain networks?
By giving real-time information about the origin and status of commodities, blockchain can enhance the way manufacturers and merchants handle their supply chains. If this design is extensively implemented, it can aid in improving the identification of illegal economic activities and prevent unlawful attempts to evade trade regulations. Anonymity should be prohibited on a blockchain built for trading and a design that does not allow for anonymity might help customs and authorities while also facilitating the flow of legal transactions.
To Sum Up
Blockchain technology is still in its early stages. It will only grow in an appropriate regulatory climate that combines acceptance of research and development and also prioritizes conformity with international trade regulations.
Blockchain technology can be applied in areas other than cryptocurrencies and has attracted attention in a variety of fields, such as international trade. It has the potential to enhance efficiency for all players in international trade while also opening up new markets for businesses all across the globe.
All of that sounds great, but how can you actually implement this into your business?
For one, head to Bitunivex.com and sign up for a free account so you can start using all of the features mentioned for your business. It might be worth knowing that you can also open Enterprise accounts with Bitunivex.