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On November 27, the World Trade Organization (WTO) released a report on the effect of blockchain technology on international trade. According to the study, blockchain's economic value added worldwide could reach nearly $ 3 trillion by 2030.
"Blockchain and International Trade: Opportunities, Challenges and Implications for International Business Cooperation" analyzes blockchain applications and the challenges to be considered before deploying technology in various sectors. The study examines the effects of technology on sectors such as trade finance, customs clearance, logistics and transportation.
Blockchain Business Value Forecast. Source: WTO
The study estimates that the blockchain can potentially significantly reduce business costs by increasing transparency and facilitating process automation, including financial intermediation, currency exchange costs, coordination, and so on. "Removing blockchain barriers could generate more than $ 1 trillion in new trade over the next decade," the report says.
Blockchain is expected to help administer intellectual property rights in multiple jurisdictions by improving transparency and efficiency, and improving government procurement processes, including by fighting fraud and managing public contracts.
The chain of blocks could, it seems, improve the supply chains, making it possible to track shipments and prove their authenticity. In addition, technology could open up new opportunities for micro, small and medium enterprises.
Conversely, the study warns of the challenges ahead of blockchain deployment, as well as its impact on international trade. The researchers point out the limited extensibility of blockchains due to the predetermined size of the blocks, as well as energy consumption and security issues.
Although "blockchains are highly resilient to traditional databases because of their decentralized and distributed nature and the use of cryptographic techniques, they are not totally immune to the problems of traditional security, "says the study.
The report highlights the importance of developing a multi-stakeholder approach to find appropriate use cases in cross-border trade. According to the WTO, the blockchain requires frameworks guaranteeing network interoperability and providing a clear legal status to blockchain transactions between jurisdictions. The report concludes:
"The blockchain could make international trade smarter, but smart trading requires smart standardization – and smart standardization can only be achieved through cooperation. If we succeed in creating an ecosystem conducive to the blockchain's broader development, international trade may be radically different in 10 to 15 years. "
Earlier this week Vitalik Buterin, co-founder of Ethereum, said the misapplication of blockchain technology in some industries was wasting time. Buterin claimed that although a number of companies are trying the technology is applicable in all sectors.
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