Last year, a publication was launched by the World Trade Organisation which calls for multi-stakeholder dialogue to look into the practical and legal implications of blockchain for the analysis of its limit in order to transform world trade.
Compared to the current network of a proprietary system, blockchain offers a transparent and safe way to share data and information. To sum it up, blockchain is like digital ledger with all the relevant information ‘jotted’ down on to it. Anyone who has the rights to access the ledger can make changes and include more information. On the blockchain, these changes are called blocks and they are added to the ‘chain’.
The World Trade Organisations article titled Can Blockchain Revolutionise International Trade, looks into the technology and how it could enhance areas related to the WTO’s work and explores the challenges that lie in front of which will have to be addressed sooner rather later so that we can see the technologies full potential.
The publication by the WTO starts off with a basic introduction to the technology and says that it is a tamper-proof, decentralised record of transactions, it allows users to collaborate with each other and built a trust barrier too. It also describes different classifications of blockchains and their current and possible applications in the various areas covered by WTO rules.
With this, there is an insight which is provided into the extent to which the technology could aid with trade facilitation and include how it can hasten the transition to paperless trade transactions. This brings the potential of blockchain into consideration and the limits in changing services it has too with payment systems, insurance and the automation of contracts. In the published content by WTO, it also goes into how blockchain could help ease the administration of intellectual property rights and enhance government procurement processes.
According to Just Style:
“Other potential benefits identified by the publication include cross-cutting opportunities to reduce trade costs, enhancing supply chain transparency and opening up new trading opportunities for micro, small and medium-sized enterprises.”
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