Using Blockchain Technology Companies for Trade Finance

    Schultz Nicolaisen
    By Schultz Nicolaisen

    Among the most propitious businesses for blockchain engineering is trade fund. A number of the world's biggest banks are putting time to 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 match their research. They will continue to improve these strategies until ready to completely enter the market.
    Thus, what are some of the findings of possible use? Here is the future of trade finance with blockchain technology businesses.

    One of R3's associates, CBA, is a top contributor to the research of blockchain technology. Currently, they are experiencing 3 distinct projects to examine blockchain usage.
    They are conducting a trial run with exporters who send cotton. A humidity monitor is put inside the canister, which can be linked to IoT and GPS.
    This monitor allows consumers to track their shipments with real time status. Also, they can assess the state of their merchandise because it travels through.
    Other federal blockchain tech companies are running pilots, very similar for this study. In Singapore, Hellosent is running similar tests. But Bitcoin Offering are studying the import of French wine.

    Eliminate Unpaid Settlements

    An increasing problem for grain farmers is a financial loss because of trade insolvencies. An estimated $50 million was lost in 2014 due to this action.
    It takes about 4-6 weeks to get a farmer for payment for their own deliveries. At that, often times conflict arises between buyers and farmers over payment complications (failing to pay the appropriate sum, late payment, etc.).
    Australian start-up, Total Profile, has taken things into their own hands.
    Their blockchain platform permits farmers to currently receive automatic payment upon delivery of grains. This will significantly lower the danger of dispute between farmers and buyers.
    Once Complete Profile's program is fully operational in a national setting, they'll expand on external trade.
    The usage of blockchain technology may also be beneficial to reducing financial loss and risk. Upon additional development, it is going to be able to digitize sales and legal arrangements.
    Trade fund is an unwieldy business, that relies heavily on obligations and contracts. Presently, most of these agreements are managed the traditional way: paper copies.
    Blockchain technology will remove the need for this particular paper-based system. This ultimately reduces the risk of monetary loss as documents are often lost, mishandled, or tarnished.
    Electronic documentation could be monitored far more efficiently.

    Blockchain technology creates transparency in financial trade between sellers and buyers.