Question

In addition to crypto currency, what role could block chain
technology play in international trade. Give one example.

Answer 1

In addition to crpto currency, block chain technology plays a crucial role in international trade by handling documents processing. The traditional way of moving large volume of paper documents for shipping transactions is very prone to fraud, human error and unnecessary delays. In addition to these the administration costs behind the physical handling of documents are very high. But in international trade, faster, efficient and more secured ways of document approval is needed to move goods across the borders of different countries. Traditional transaction system mostly relied on the physical movement of bulk of paper documents leaving the chance for fraud, human error and unnecessary delays. Block chain is the most successful digital ledger technology which helps to transfer goods through financial instruments like letters of credit and the digitization of conventional trade and shipping documents.

Several industries have came forward to test the use of block chain technology in shipping world. For exa, Everledger, a London-based startup company has also implemented the block chain technology to monitor and safeguard its assets,i.e.,diamonds.

Nowadays, blockchain is the most popular technology which helps in opening up the possibilities of more efficient international trade by getting out of the superfluous processes and minimizing the costs.