Global trade is a complex, interconnected system that involves a variety of actors, from businesses and governments to individuals. Over the years, commerce has evolved to become more efficient and secure, but there are still challenges to be overcome.
One of these challenges is the lack of transparency and trust in the trading system. Currently, information about business transactions is often fragmented and difficult to access. This can lead to fraud, corruption and other forms of misconduct.
Another challenge is the complexity and bureaucracy of trade. Business processes are often slow and inefficient, which can increase costs and harm companies' competitiveness.
Blockchain technology has the potential to solve these challenges and transform global trade. Blockchain is a decentralized ledger technology that uses cryptography to ensure data security and integrity.
How blockchain works
Blockchain is a network of computers that share a database of information. This information is stored in blocks, which are connected to each other using encryption.
When a new transaction occurs, it is recorded in a new block. That block is then added to the chain, which is a sequence of blocks that extends backwards in time.
Cryptography ensures that information on the blockchain cannot be altered or falsified. This is because each block contains a hash of the previous block. A hash is a unique code that is generated from the block data.
If a block is changed, the hash of the previous block will also be changed. This would cause the entire blockchain to be inconsistent, which would be detected by network participants.
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