Being hailed as the new generation’s disruptive technology, the blockchain has the potential to take the digital transactions of any kind to a whole new innovative level and change the world from within. Simply put, the blockchain is a promising technology that has been used to safely record digital transactions done in cryptocurrency such as Bitcoin.
Though it has been alien to us, the blockchain is making its quality imprints assuring the safe transactions in real-time. Not only the trade finance, which has got to revolutionize within but also other fields where there is a scope for digital transactions will be surpassing the limits and perceptions of the present day’s business with the blockchain technology.
What does the blockchain technology promise for trade finance?
The foremost promise from blockchain technology is that the whole trade finance will be streamlined in a greater way. The blockchain being a distributed digital ledger, there is no such single authority that claims sovereignty over the whole range of transactions. In the following ways, the blockchain has been helping trade finance all over the world.
- Real-time processing and review of data to streamline the whole business activities.
- Payments could be executed in a smart way removing the vulnerability factors and inefficiency.
- The need for maintaining multiple copies of the same document on a number of databases is no more felt with the blockchain is quickly updated for the most recent transactions.
- Over the blockchain, a single digital document can encompass all the needed information.
- The settlement time for transactions has been greatly speeded up. As the delay is inherent to the traditional system, it is ordained to go beyond this conventional style of business work and tendency so is the blockchain that quickens the processes.
- It’s an open consensus system equipped with the highest level of security. No fear of theft.
- The ability of blockchain to check the double entries stops the fraudulent transactions.
- Manipulation risks are totally eliminated due to the consensus mechanism that doesn’t give any single entity full control of the process.
- Authentication and authorization in trade finance have been greatly simplified.
- No transaction fees so it’s a win-win and mutually beneficial for the seller as well trader.
- The blockchain technology fundamentally removes the need for middlemen and makes the whole affair a regulatory free; hence the faster trade finance process.
Thus, it is no wonder that the blockchain is a future promising technology that possesses the potential to take the trade finance beyond the set horizons and revolutionize the world to make it possible which wasn’t imagined by now. Undoubtedly, to date, the blockchain has played a crucial role and has shown its capabilities and has already made an impact in many parts of the world.
(Note: The same article has been published on YourStory by the same writer)
