Blog

Throughout human history, we have developed tools and technologies to improve our way of life. Global trade has come a long way from the days of manual record-keeping and manual processing of documents. Over the centuries, international trade has undergone many transformations.

Especially the Covid 19 crisis has brought about years of change in the way companies in all sectors and countries do business. The latest and the most important of these transformations is the blockchain and the digitalization of international trade, which will make it faster, more efficient, and more reliable.

One of the biggest advantages of digitalization in international trade is the reduction of manual errors, paperwork, costs and speed up the process. Digital tools also make it possible to share information more easily between different stakeholders, including suppliers, buyers, and customs officials.

In addition, digitalization increases transparency in the foreign trade process. With digital tools, it's easier to track shipments and monitor the status of each step in the process. This helps businesses to better understand the progress of their shipments, identify any potential difficulty, and take corrective action if necessary.

Another advantage of the digitalization of foreign trade is security. The use of blockchain technology, for example, makes it possible to create a secure and transparent record of all trade-related activities, reducing the risk of fraud. This does not only increase the security of international trade but also improves the confidence of businesses and consumers in the integrity of the global trade system.

While digitalization and blockchain have the potential to revolutionize the way businesses, there are also disadvantages that must be considered. One of the biggest disadvantages of digitalization in foreign trade is the potential for cybercrime and data breaches. Another challenge is costs which can be a barrier for small and medium-sized enterprises and personal and legal information also can be sold to third parties. However, despite of all these potential risks, businesses can fully gain benefits to succeed in the global marketplace by taking precautions.

As can be seen, many blockchain-based projects are carried out in the world that will facilitate foreign trade processes, shorten them, reduce costs, errors, and risks, and thus increase trade volume. Thanks to the transparency and trust element of blockchain technology, more companies in the world will be involved in the foreign trade sector. Our companies will not stay out of the sector and be an important party, only if they realize their digital transformation and follow the technological developments closely.

Arzu Castro

Trade Operation

Supervisor