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Blockchain’s disruptive effects on International Trade

(2019)

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BaptistePerezRiaza_82051700_2018-2019.pdf
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  • Adobe PDF
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BaptistePerezRiaza_82051700_2018-2019_Appendix1.pdf
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Abstract
The world has experienced a drastic increase in trade flows following the beginning of globalization and the invention of containers. However, the processes of international trades of goods have not evolved much and are still mainly paper-intensive, requiring costly and time-consuming manual checking. The paper nature of the procedures entails major inefficiencies in terms of speed, visibility and security. Therefore, the digitization of international trades will entail major efficiency gains. Nonetheless, the need of a trusted third party to preserve information and to transfer either data or money constitute a major point of failure for both the security and the veracity of the data. In the case of Blockchain, no third party is required to store and safe keep the data as the system is maintained by all the computers connected to the network and automation features can be added through the use of Smart contracts. This work intends to spot and highlight the disruptive effects that Blockchain could bring to international trade via the gathering of all agents involved in both or either trade finance, supply chain management and cross-border procedures.