Editor’s Note: The below article is the last in a three-part series about blockchain and its implications on international trade. Read the first and second articles here.
Of all the blockchain-based innovations, smart contracts running off blockchain may be the most transformative for international trade. Smart contracts will go beyond eliminating the reliance on physical paper in international transactions by potentially removing the need for financial intermediaries altogether. Smart contracts can be described as self-executing contracts that run off code, which initiate performance and automatically impose penalties when predefined conditions are met.[1] They essentially serve as automated escrow robots.[2]
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00NCBARBLOGhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngNCBARBLOG2017-12-18 08:00:442017-12-18 08:00:44Smart Contracts: What Are They and What Do They Mean for International Trade?
Editor’s Note: The below article is the second in a three-part series about blockchain and its implications on international trade. Read the first article here.
Applying blockchain technology to international trade allows stake holders to take advantage of a a much more efficient and transparent technological infrastructure than the current outmoded paper-based system. Prior to blockchain’s emergence, digitizing negotiable trade documents, without creating the potential for fraud, could only be accomplished through expensive and closed members-only systems.[1] With blockchain, however, an accurate record of possession and title can be maintained without the need for paper processing or a centralized intermediary.
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00NCBARBLOGhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngNCBARBLOG2017-11-10 15:33:372017-11-10 15:33:37Blockchain Technology: Its Impact on Bill of Lading and Trade Finance Systems
International trade is undergoing a tremendous transformation thanks to the emergence of a groundbreaking technology called blockchain. Blockchain is essentially a ledger that is distributed on a network of independent computers, which allows for unalterable records of asset ownership. The ledger’s immutability comes from the fact that any attempt to alter a ledger stored on one computer in the network would be exposed by the ledgers stored on the rest of the computers in the network. Thus, blockchain technology provides international trade a more a reliable alternative to the current paper based systems of trade while simultaneously reducing the fraud, shipment time, and costs.
Blockchain gained its prominence as the technological infrastructure for virtual currencies such as bitcoin.[1] Since blockchain can keep accurate records of asset ownership and ensure that asset transfers stem from their legitimate owners, blockchain technology has solved the problem that previously plagued past attempts to establish reliable virtual currencies: the potential for fraud.[2]
https://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.png00NCBARBLOGhttps://ncbarblogprod.wpengine.com/wp-content/uploads/2018/06/Blog-Header-1-1030x530.pngNCBARBLOG2017-11-03 09:44:362017-11-03 09:44:36Blockchain Technology: Its Implications for International Trade
