Transparency in shipping is something that businesses are always looking for. All formalities in traditional maritime transactions are on paper. This takes a lot of time, through many stages wasting manpower and time on both sides. Due to paperwork, countless cases of corruption, fraud and loss of information arise.
With blockchain technology everything will be resolved on a quick and complete security ledger.
One of the most promising use cases for blockchain in international trade involves moving goods via ship. Sea freight accounts for 90% of international trade. A paper bill of lading has been the universal shipping document that governs the trade for centuries, and is still pervasive today. It lists what a shipment contains, from where, for whom and at what value. The system however is filled with flaws. Because the bills are paper, they can be easily lost, stolen or manipulated. They can also be transferred without the actual goods changing hands which ushers in rampant abuse and corruption. These possibilities for abuse reduce trust amongst shipping agents, governments and ultimately consumers.
With blockchain development, it may help rectify these trust problems and reduce error and corruption. Because all information regarding a shipment’s content, location and ownership are stored on a decentralized, transparent ledger, everyone involved can verify the expected and delivered goods. The blockchain makes it exceedingly difficult to falsify shipments, evade taxes, or skim profits.
Blockchain also greatly increases shipping speeds for international trade by putting the bill of landing on a public ledger. In the current system, untrusting importers tend to delay payments as long as possible by waiting to receive the goods before making a payment. Conversely, exporters want to avoid the nuisance and expense of an aborted shipmen so they require importers make payments early. This tension-filled reality consistently produces delays and arguments. Because importers and exporters can trust each other when blockchain is employed, they are more willing to send goods before money is received, or vice versa. The facilitation of fast, paperless, secure trades results in faster shipping speeds to everyone’s benefit.
You can read full article here: https://www.blockchainlabs.asia/news/blockchain-development-international-trade/ Thank you for reading "Blockchain development help rectify problems, reduce error in international trade". If you like this post and want to learn more about blockchain please visit the page and update news everyday.
With blockchain technology everything will be resolved on a quick and complete security ledger.
One of the most promising use cases for blockchain in international trade involves moving goods via ship. Sea freight accounts for 90% of international trade. A paper bill of lading has been the universal shipping document that governs the trade for centuries, and is still pervasive today. It lists what a shipment contains, from where, for whom and at what value. The system however is filled with flaws. Because the bills are paper, they can be easily lost, stolen or manipulated. They can also be transferred without the actual goods changing hands which ushers in rampant abuse and corruption. These possibilities for abuse reduce trust amongst shipping agents, governments and ultimately consumers.
With blockchain development, it may help rectify these trust problems and reduce error and corruption. Because all information regarding a shipment’s content, location and ownership are stored on a decentralized, transparent ledger, everyone involved can verify the expected and delivered goods. The blockchain makes it exceedingly difficult to falsify shipments, evade taxes, or skim profits.
Blockchain also greatly increases shipping speeds for international trade by putting the bill of landing on a public ledger. In the current system, untrusting importers tend to delay payments as long as possible by waiting to receive the goods before making a payment. Conversely, exporters want to avoid the nuisance and expense of an aborted shipmen so they require importers make payments early. This tension-filled reality consistently produces delays and arguments. Because importers and exporters can trust each other when blockchain is employed, they are more willing to send goods before money is received, or vice versa. The facilitation of fast, paperless, secure trades results in faster shipping speeds to everyone’s benefit.
You can read full article here: https://www.blockchainlabs.asia/news/blockchain-development-international-trade/ Thank you for reading "Blockchain development help rectify problems, reduce error in international trade". If you like this post and want to learn more about blockchain please visit the page and update news everyday.