The international trade industry is famed for being behind the time and reliant upon outdated and unreliable processes and data. With complicated and time-consuming applications to inconsistent regulations, it’s long been discussed that the international trade industry is in drastic need of an overhaul and digital transformation. Such changes could result in quicker results and the saving of potentially billions of dollars around the world.
One form of digitalisation which is being recommended is the use of crypto and blockchains within the industry, particularly when it comes to addressing key issues. Technology has long been used to improve communication and information reliability, and the implementation of blockchain technology is set to be the next big thing. With that in mind, let’s take a look at how crypto can revolutionise international trade.
Can Blockchain Make A Difference?
Blockchain, renowned for its use in the cryptocurrency landscape, makes data and record-keeping easier and more transparent. With this comes more security. Blockchain offers time-sensitive information on all transactions, no matter if they are private, from corporate businesses or international chains. As a result, it’s much easier to manage and ensure that appropriate practices have been followed, no matter the country of trade.
A common misconception is that blockchain can only be used alongside Bitcoin. This isn’t the case and, since it was launched in 2008 alongside Bitcoin, it has evolved far beyond the cryptocurrency. Blockchain is used in a number of industries, such as finance and ecommerce, to food safety and supply chain management and can cut across almost all areas of global economy and international trade.
Overcoming Trade Challenges
Some of the biggest challenges involved with international trade is the ability to authenticate and verify international trade identities and this can affect the way in which businesses look to establish trust in different stages of international trade transactions. Despite the potential benefits, the adoption of blockchain in global trade also faces a number of complex challenges. Blockchain is still evolving and as a result, it does require a competent level of technical expertise to implement and maintain in your infrastructure.
There is also the challenges that come with cryptocurrency itself. Although blockchain is considered to be one of the safest platforms, cryptocurrency is decentralised and with that comes challenges such as broker scams and specific investment scams. Many investment fraud lawyers are hearing of more and more businesses who look to adopt cryptocurrency within their business falling victim to scams such as these, so if you are looking to utilise cryptocurrency or blockchain within your business model, it is recommended to do some research beforehand.
Future Predictions
We know that digital transformation is happening in pretty much every industry across the world, and there are some which are incredibly more advanced than others. For example, banking and other financial services are miles ahead in welcoming and embracing technologies such as blockchain compared to the international trade industry. But, that being said, there are many ways in which the basic application of blockchain can transform outdated and unreliable processes.