Posted by Sponsored Post Posted on 17 May 2021

How blockchain technology is rejuvenating free trade?

Trade has always been a vital factor in economic development of the world. Trade has also served innovations in technology and in recent time, the modern blockchain technology has swiped investors and shareholders off their feet. Blockchain technology has now been considered as the next big game-changer. Having said so, the global crisis that the world is facing is reflecting upon the dilapidating global economy as well. 

The status and development of the global economy is assessed and measured on the basis of the growth in the country’s Gross Domestic Product (GDP). Economists believe that development in global trade is similar to growth in a country’s GDP. Thus, it is not impossible for the global crisis to revamp again after the pandemic since technology has been introduced in the trade sector. By influencing international trade through technology, the global economy can be made stronger even amidst the global crisis. 

Free trade amidst the global crisis 

With the Covid-19 pandemic in motion, global trade and supply networks have suffered to a great extent. While the spread of the virus is becoming widespread and fatal, major economies around the world have started to cripple. We are now encountering the worst economic downfall of all times owing to not inflation or economic crisis but a deadly pandemic. Even in these tough times, technology has not only helped save lives across the world but has also instilled some hope for the trade sector. 

Covid-19 has not only caused the global economy to gradually cripple but has also highlighted the significance of digitization. The pandemic has shown that the lack of digitization within the economic sector is evident and also not trusted upon by many.  On the other hand, manual and paperwork processings are not only time-consuming but also inefficient. Face-to-face interactions over digitization is yet to be practiced widely and requires several years before its prevalence occurs. 

Digitization is significantly vital in trade and business as it not only increases transparency, but also generates faster and sustainable results. The technological tools of digitization are not slowly being introduced in trade as the global population is in the search of solutions for evaluating international trade. 

The powers of blockchain technology 

  • Digitization through the help of blockchain technology is unique in its scope of potential. Blockchain technology has the capacity to decrease clashes in global businesses, save much time, and reduce operation cost, while also analyzing risks and creating updated models of businesses. For international free trade to remain functioning and to see the wide scope of benefits, trusted information and data requires to be value exchanged and shared, on blockchain networks as well as the non-blockchain ones. 
  • Since businesses around the world have been highly affected by the Covid-19 pandemic, blockchain technology has the potential to provide transparency of asset management without it being tampered with. Developers of blockchain continue to make new innovations and technologies and have done the same during this pandemic. 

Several blockchain technologies such as that have helped with digital solutions that in turn have helped with combating the crisis. From making emergency supplies to creating platforms for assisting and integrating new data, blockchain technology has helped associate different people across the world and also initiated digital trade. 

  • Blockchain has been found to be the source of optimism especially for the trade sector. Organizations involved in trade business have gradually adopted digitization that includes blockchain technology and has created an intricate mesh of supply chain networks, thereby rejuvenating global trade. This phenomenon not only creates a network of networks but also helps companies build higher resilience and greater flexibility into supply chain management and operational system management. 

Also, blockchain technology as a tool of digitization helps in reducing paper-based cost, that is it helps in carrying out paperless transactions for trade. As the system of trade and commerce is becoming more expensive, global trade is also likely to follow the same path. Thus, opting blockchain technology in trade industries would help rejuvenate free trade.

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