Cross-Border Trade Through Blockchain

Abstract

The emergence of blockchain technology has created a buzz and a mind shift for organizations and industries. Governments and international bodies are increasingly discussing the potential implications of blockchain’s distributed ledgers on business, governments and the economy. In this paper we present theoretical study that investigates whether the technology is ready to disrupt the way business is conducted or we still at an early stage. Distributed ledgers are possibly most useful in scenarios involving multiple parties where items change their state or status frequently. These scenarios involve parties who are generally distributed and using different technologies, systems and applications. The intended purpose of the technology is to connect business network members in a decentralized fashion. An essential element of this network is adherence to a common protocol for validation of blocks. By distributing data across the network, the blockchain eliminates the risks of centralization. The technology enables exchange and sharing of information without the involvement of intermediaries acting as arbitrators. Powered by its decentralized nature, the network will not have any single point of failure and will not rely on any single entity. Multiple industries and organizations are attempting to obtain a lead position by adopting the technology in their business or within the supply chain. However, due to various technical, social and political challenges little progress has been made thus far. Although the technology of blockchain holds a lot of promise it’s still not mature enough for general implementation. Once enough evidence proves the effectiveness of the technology for different industries, the adoption level is expected to increase and the benefits will be better understood.