One of the most prop presentation industries for Blockchain technology is trade financing. Many of the largest banks in the world put time in their research and development.
Thanks to the consortium of 71 global financial leaders, R3CEV, many have been found about the potential for the use of Blockchain technology.
Since 2016, R3 has run several pilot rounds on the market to complete their research. They will continue to improve this strategy until it is ready to fully enter the market.
So, what are the findings of their potential use? This is the future of trade in trade with Blockchain technology company.
Monitor status and real-time conditions
One member of R3, CBA, is the main contributor to Blockchain technology research. At present, they are undergoing 3 different projects to analyze the use of blockchains.
They conduct trials with exporters who send cotton. Moisture monitors are placed in the tube, which is associated with IOT and GPS.
This monitor allows consumers to track their shipments with real-time status. Also, they can evaluate the condition of their products while traveling.
Other National Blockchain technology companies are running pilots, similar to this research. In Singapore, Hellocent did a similar test. However, they are studying the import of French wine.
Eliminate unpaid settlement
Problems that develop for wheat farmers are financial losses due to trade bankruptcy. It is estimated that $ 50 million is lost in 2014 because of this activity.
It takes around 4-6 weeks for farmers to receive payments for their shipments. At that time, often conflicts emerged between farmers and buyers for complications of payment (failed to pay the appropriate amount, the delay of payment, etc.).
Australian start-up, full profile, has been troubled into their own hands.
Their Blockchain platform allows farmers now to accept automatic payments after shipping grains. This will significantly reduce the risk of disputes between farmers and buyers.
After the full profile application is full in domestic settings, they will expand external trade.
The use of Blockchain technology can also be useful for reducing losses and financial risks. After further development, it will be able to digitize sales and legal arrangements.
Finance trade is a heavy industry, which is very dependent on settlements and contracts. At present, most of these agreements are handled in ancient ways: paper copies.
Blockchain technology will remove the need for this paper-based system. This ultimately reduces the risk of financial loss because documents are often lost, wrong handling, or tarnished.
Electronic documentation can be traced much more efficient. Also, it cuts the need for a third party verification system.