By 2030, Blockchain Deployment Could Add About $3 Trillion in International Trade

In a recently released report by the World Trade Organization (WTO), Blockchain is expected to add value to the economy. The report was conducted on Blockchain technology and its effect on the international trade day. The study reveals that the economic value on a global scale may reach $3 trillion by 2030.

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Blockchain and international trade

The report was titled “Blockchain and International Trade: Opportunities, Challenges, and Implications for International Trade Cooperation” it analyzes the application and challenges of the Blockchain that have to be considered before the deployment of the technology in different sectors of the economy.

It also considers the effect of the technology on industries like trade finance, logistics, customs clearance and transportation. The study also estimates that the technology has the potential to cut trade costs significantly. It will do this by facilitating processes automation and increasing transparency. This also includes financial intermediation, coordination, exchange rate costs and other aspects.

The report reads,

The removal of barriers due to Blockchain could result in more than $ 1 trillion of new trade in the next decade,”

How blockchain helps administer intellectual property rights

The technology is expected to promote the administration of intellectual property rights across several jurisdictions. It will do so by delivering more efficiency and transparency. It will also enhance government procurement processes including managing public contracts and fighting fraud.

Blockchain may also help improve supply chains and allow for the seamless tracking of shipments. It could also prove their authenticity. In addition, the technology could provide new opportunities for small and medium-size companies as well as micro companies.

Also, the study warns about the challenges which must be addressed before launching the Blockchain. It also speaks about the impact on international trade. Researchers pointed out the limited scalability of blockchain because of the predetermined size of blocks. They also cited security and energy consumption issues.

The study states that,

blockchains are highly resilient compared to traditional databases due to their decentralized and distributed nature and the use of cryptographic techniques; they are not completely immune from traditional security challenges,” the study states.

Despite the fact above, the report stresses the importance of creating a multi-stakeholder approach. This makes it easier to find appropriate use cases in the cross-border trade. Reports from the WTO reveal that blockchain needs frameworks that promote interoperability of networks. It also provides clear legal status for transactions on the blockchain across different jurisdictions.

In conclusion, the report states,

Blockchain could make international trade smarter, but smart trade requires smart standardization — and smart standardization can only happen through cooperation. If we succeed in creating an ecosystem conducive to the wider development of blockchain, international trade could well look radically different in ten to 15 years.

Buterin’s thoughts on the misapplication of the technology

Earlier in the week, the co-founder of Ethereum, Vitalik Buterin, stated that the misapplication of the blockchain technology in various industries leads to a waste of time. He argued that even though there are different companies that attempt to establish higher standards by making use of Blockchain technology, it is unlikely that the technology will be easily applicable in every industry.

 

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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