According to experts, Blockchain technology can accelerate international trade flows

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Blockchain is the basic technology underlying the cryptocurrency, for example,Bitcoin.

According to Ramesh Gopinath, technology major IBM Vice President of Blockchain Solutions, the traditional method used by supply chains to physically move large volumes of paper documents for shipping transactions is very vulnerable to fraud, human error and unintentional delays.

In addition, the administrative costs of processing, moving, checking and securing documentation are very high.

Meanwhile, Supply Chains and Logistics expert Wolfgang Lehmacher said that Blockchain technology or digital ledger technology (DLT) is slowly but surely entering the freight transport sector through financial instruments such as letters of credit, as well as by digitizing conventional trade and shipping documents.

Several industry players have begun projects to test the use of Blockchain in shipping transactions. The Danish shipping company Maersk has worked with IBM to test the Blockchain-based approach to tracking deliveries.

London startup Everledger has also piloted the use of Blockchain to monitor and protect its valuable assets, such as diamonds. The consortium of South Korean enterprises has used the technology of tracking refrigerated containers from shipment order to cargo delivery.

Earlier this year, Wolfgang Lehmacher has also explored the benefits of Blockchain in international trade, focusing on how technology could overcome conventional trade barriers.

Blockchain helps to expand the various opportunities for international trade, getting rid of the excess processes, while minimizing the costs that usually arise in international trades and operations.