201. Unblocking the Bottlenecks and Making the Global Supply Chain Transparent: How blockchain technology can update global trade
- Author:
- Hanna Norberg
- Publication Date:
- 01-2019
- Content Type:
- Policy Brief
- Institution:
- Canadian Global Affairs Institute (CGAI)
- Abstract:
- Blockchain technology is still in its infancy, but already it has begun to revolutionize global trade. Its lure is irresistible because of the simplicity with which it can replace the standard methods of documentation, smooth out logistics, increase transparency, speed up transactions, and ameliorate the planning and tracking of trade. Blockchain essentially provides the supply chain with an unalterable ledger of verified transactions, and thus enables trust every step of the way through the trade process. Every stakeholder involved in that process – from producer to warehouse worker to shipper to financial institution to recipient at the final destination – can trust that the information contained in that indelible ledger is accurate. Fraud will no longer be an issue, middlemen can be eliminated, shipments tracked, quality control maintained to highest standards and consumers can make decisions based on more than the price. Blockchain dramatically reduces the amount of paperwork involved, along with the myriad of agents typically involved in the process, all of this resulting in soaring efficiencies.
- Topic:
- International Affairs
- Political Geography:
- Global Focus