The blockchain concept is based on the fact that it is a consolidated technology and defined as the main responsible for the success in the use of cryptocurrencies. In this article we will discuss how various segments of international trade are evolving in the use of these new and differentiated technologies. Of course, while mentioning blockchain in foreign trade, with all its applications on a global scale to streamline international transactions through the use of cryptocurrencies and smart contracts in international trade between target countries.
Currently, this technology is present with strength in the support of all various cryptocurrency operations. In addition, it has been gaining new features as its concept is improved and updated in everyday life.
Read the article to the end and understand the possibilities that foreign trade will take advantage of with blockchain advances, even with all the complexity of its import and export processes.
What is blockchain?
The technology gained relevance in 2008 as a result of the operation of bitcoin, the virtual cryptocurrency associated with a peer-to-peer electronic financial system. Basically, it is a decentralized computer network in which each of the participants also functions as a server, not just as a client.
However, for some years the application of technology has been untying the limits of bitcoin. This is because it is linked to the financial system, with its real applications in banking institutions and government companies. Even blockchain in foreign trade is being promising for all international segments.
In short, blockchain is a network that performs its operation in chained blocks that ensure greater security, since they always load their content sums together from the fingerprint.
Therefore, the technological process maintains collaboration, security and transparency, which makes the network reliable because of the links of the existing fingerprint between the encrypted blocks.
Types of practical blockchain applications
Generally, companies work with a private blockchain modality , with access only from people authorized to monitor its operation.
Also called the “trust protocol”, the technology functions as if it were a shared and immutable ledger. This makes it easy to record transactions and track assets on a private network.
Blockchain in foreign trade therefore enables technology to advance at a better and safer level in the various complex processes existing in international segments. This way they can expand by following the rules pre-established by the algorithm.
Companies that carry out large operations with a lot of complexity and high financial value are already looking for technological evolution in the most used situations. Such as financial transactions, contract negotiations and process transparency.
Blockchain advantage in foreign trade
The use of blockchain in foreign trade offers companies a cooperative model between nations. That is, surely each country will be able to view the data of other countries with all security, so that they are not modified without authentication.
Through blockchain in foreign trade is that the companies involved in the stage of the international business process have greater visibility at the time they are located.
Thus, operating costs and risks in trades are reduced, allowing competitors to collaborate with each other to serve the end customer in a faster and more agile way.
This technology gains prominence in foreign trade because of its operational versatility and security, impacting international transactions efficiently and with greater agility. After all, it reduces the circulation of information on paper and also automates the various processes that are needed.
Such as document validation through the digital platform. In addition to the exchange of relevant information between customs, so that mutual agreements can be established and fulfilled.
Certainly, all these potential benefits of blockchain technology in foreign trade can provide the various segments with some good advantages. Among which we will list below:
- Reduction of bureaucracy;
- Integration of shared and secure data;
- Registered operations with greater confidence and efficiency;
- Data inviolability;
- Transparency of data by network members;
- Tracking of procedural steps;
- Elimination of intermediaries to validate operations;
- Simplicity in customs procedures.
Future of foreign trade with blockchain
In practice, blockchain in foreign trade validates all international operations through a system that shows immediate and pertinent information, shared with transparency, agility and cost reduction to those interested in the commercial relationship network.
In addition, it is worth highlighting the safe procedure that the technology demonstrates in its use, so that it validates all necessary operations and prevents fraud or failures.
Foreign trade companies can expect from the future with blockchain a functional cryptoactive for everyday tasks. You can even replace real money by being more practical for smaller purchases. In addition, it is much more reliable and secure for the more complex business operations that international segments routinely require.
Some government agencies and international organizations have already begun preliminary work on technology regulation, and it seems very likely that international efforts to regulate blockchain will continue.
Learn about Cheap2ship’s foreign trade technology
With the freight platform technology that Cheap2ship offers, your international freight negotiations will be done in one location, with much greater agility. That’s because it lets you view your freight suppliers in one place and make the choice for the best offer.
In other words, your company will have all the quotes organized in the same digital environment to perform immediate comparations in freight quotations, which will promote a reduction of costs and greater operational control of your demands.
All this 100% digital, with great ease and agility in an intelligent platform, in which the transport manager of your company can access indicators, graphs and reports that will bring assertiveness in decision making.
Cheap2ship’s digital platform brings many benefits to all its customers from first use. The figures achieved show all the positive points that your company will get with the solution in international freight. They are:
- 95 Net Promoter Score (NPS) points for customers;
- More than 30% in reducing freight costs;
- More than 90% in the operational time gain of your transport team; and
- More than 97% increase in compliance in trade negotiations.
In it your company can register its current suppliers in an organized way, observing all bids for proposals of freight quotations and history in one place to perform the best trade.