USING BLOCKCHAIN TECHNOLOGY COMPANIES FOR TRADE FINANCE

July 19, 2018

One of the most propitious industries for blockchain engineering is trade fund. Many of the world’s largest banks have been putting time into its development and research.
Thanks to a consortium of 71 international financial leaders, R3CEV, much has been discovered about possible uses of blockchain technology.
Since 2016, R3 has implemented several pilot runs in the market to complement their research. They’ll continue to improve these strategies until ready to fully enter the marketplace.
So, what are some of the findings of potential usage? Here’s the future of trade finance with blockchain tech companies.

Among R3’s members, CBA, is a top contributor to the research of blockchain technology. Currently, they are experiencing 3 different jobs to examine blockchain usage.
They’re conducting a trial run with exporters who ship cotton. A humidity monitor is placed inside the canister, which can be linked to IoT and GPS.
This monitor enables customers to monitor their shipments with real time status. Furthermore, they are able to evaluate the state of their product because it travels through.
Other federal blockchain technology companies are running pilots, similar to this study. In Singapore, Hellosent is running similar evaluations.

A growing issue for grain farmers is a monetary loss due to trade insolvencies. An estimated $50 million was dropped in 2014 due to the action.
It takes about 4-6 weeks to get a farmer to receive payment for their shipments. At that, often times conflict appears between farmers and buyers over payment issues (failing to pay the right amount, late payment, etc.).
Australian startup, Total Profile, has taken things into their own hands.
Their blockchain platform permits farmers to now receive automatic payment upon delivery of grains. This may significantly reduce the danger of dispute between farmers and buyers.
Once Smart Contracts Development is completely operational in a domestic setting, they’ll enlarge on external transaction.
Digitize
The use of blockchain technology may also be beneficial to reducing fiscal loss and risk. Upon further development, it is going to be able to digitize sales and legal arrangements.
Trade fund is an unwieldy business, that is based heavily on settlements and contracts. Presently, most of these arrangements are managed the traditional way: newspaper copies.
Blockchain technology will remove the need for this paper-based system.
Electronic documentation could be tracked much more efficiently. In addition, it cuts out the need to get a third party confirmation system.

Blockchain technology generates transparency in fiscal trade between buyers and sellers. From the moment an order is created up until payment, blockchain is capable of simplifying the trade process.