One of the best industries for blockchain technology is trade finance. Many of the world’s largest banks are putting time into their research and development.
R3CEV, a consortium of 71 global financial leaders, has found much to learn about the potential uses of blockchain technology.
Since 2016, R3 has run several pilots in the market as a complement to their research. These strategies will continue to improve until they are ready to fully enter the market.
So what are some of the potential use findings? Here you have the future of trade finance with blockchain technology companies.
Monitor real-time status and status
One of the members of R3, CBA, is a leading contributor to blockchain technology research. Currently, 3 different projects are being carried out to study the use of the block chain.
They are conducting a test with exporters who ship cotton. A humidity monitor is placed inside the vessel, which is connected to IoT and GPS.
This monitor allows consumers to track real-time shipments. They are also able to assess the condition of the product while traveling.
Other national blockchain technology companies are conducting pilots, similar to this research. In Singapore, Hellosent is conducting similar tests. However, they are studying the import of French wine.
Delete unpaid settlements
The growing problem of grain farmers is the economic loss caused by trade failures. In 2014, approximately $ 50 million was lost as a result of this activity.
A farmer needs approximately 4-6 weeks to receive payment for his shipments. This often results in a dispute between farmers and buyers due to payment difficulties (non-payment of the corresponding amount, late payment, etc.).
The Australian start-up, Full Profile, has taken matters into its own hands.
Their blockchain platform allows farmers to receive automatic payment upon delivery of grain. This will significantly reduce the risk of conflict between farmers and buyers.
When the full profile app works fully in the home settings, they will be deployed in foreign trade.
Using blockchain technology can also be beneficial in reducing economic loss and risk. After further development, it will be able to digitize sales and legal arrangements.
Trade financing is an unlikely industry that relies on settlements and contracts. Today, most of these agreements are formed in the old fashioned way: paper copies.
Blockchain technology will eliminate the need for this paper system. This ultimately reduces the risk of financial losses, as documents are often lost, mistreated, or soiled.
Electronic documentation can be tracked much more efficiently. It also reduces the need for a third-party verification system.
Interested in learning more about Blockchain technology companies?
Blockchain technology creates transparency in financial trading between buyers and sellers. From the moment the order is placed until the payment is made, the blockchain is able to facilitate the trading process.
Do you want to jump into the world of international trade? You are in the right place. It would be great to know your thoughts and comments.