Blockchain: Contemporary Challenges and Future Application in International Trade

Blockchain, often known as the Internet of Value, is a relatively new technology. There is no consensus on its potential worth, as there is with other new technology, with some claiming that it will bring greater disruptive changes than the Internet and others disputing its significance. Despite dire predictions, there is evidence that blockchain is a wonderful, game-changing technology that will transform the way transactions are conducted, owing to its ability to provide trust among unknown parties, ensure the immutability of data, and eliminate the need for intermediaries. The popularity of digital currencies and the large number of published blockchain papers attest to the relevance of blockchain in near future. This research looks at the possible significance of blockchain technologies in international trade, specifically how they might impact trade financing, customs procedures, and commodities provenance (origin). In the case of trade finance, blockchain has the potential to minimise the cost and time required to facilitate transactions that rely on third-party loans or insurance. More than the universal abolition of tariffs, blockchain could lower costs, speed customs operations, and enhance both global trade volumes and economic output. In addition, blockchain might be used to improve the detection of illicit trade flows and dissuade unauthorised attempts to bypass trade restrictions. Customs and law enforcement may be aided by such technologies in smoothing the flow of legitimate trade. Several initiatives are underway to investigate the benefits of blockchain and how to manage its hazards for international trade.