Blockchain’s revolutionary technology is absolutely ideal for tracing products across global supply chains, enabling sustainable sourcing and verifiable provenance.
According to a World Trade Organisation report:
“No technology has stirred up so much popular passion since the advent of the internet, and none has sparked so much controversy beyond the confines of the mysterious universe of information technology (IT) specialists,”
The WTO also stated that it believed that Blockchain would remove barriers resulting in $1 trillion of new trade over the coming decade.
Emmanuelle Ganne, Senior Analyst of the Economic Research and Statistics Division, remarked that all parties in the supply chain would benefit, not just importers and exporters but shippers, banks and all others involved.
Ganne also mentioned the complexities of international trade, especially the paperwork and procedures. She cited the example of how SMEs (Small and Medium Enterprises) really struggle with the costs that accompany these operations.
In her WTO report “Can Blockchain revolutionize international trade”, Ganne wrote:
“If blockchain technology can help reduce these fixed costs, that would be a big win. In fact, blockchain technology can also empower them to prove the quality and origin of their products. But it is not only SMEs that stand to benefit — if the technology spreads in the right way we can allow all actors in the trading system to interact in real-time, on a peer-to-peer basis, and ultimately create a number of synergies,”
When discussing the immutable properties of Blockchain, Ganne also wrote:
“Blockchain, therefore, ensures immediate, across-the-board transparency, and as transactions added to the blockchain are time-stamped and cannot easily be tampered with, blockchain technology allows products and transactions to be traced easily,”
The report also discussed the move to paperless trades. In a sector that is particularly paper-intensive, this would be seen as very instrumental for improving efficiencies.
Last and not least, the report covered blockchain’s potential to significantly cut costs involved in the varied processes of verification, processing, transportation, logistics, and financial intermediation. These costs were not able to be quantified, but the WTO stated that there would likely be a sizeable impact.