Key Benefits of Blockchain in Trade Finance

 

The infographic highlights the six most important benefits of blockchain technology in trade finance:
TRACEABILITY

  • Tracking goods and trade assets and where they are currently residing.
  • Related asset information can be relayed to or from the new owner for financing trade.

TRANSPARENCY

  • Increased commercial transparency can reduce delays in financing trade.
  • Details of transactions against the commercial agreements improve further trust.

AUDITABILITY

  • Each trade finance transaction is recorded sequentially and indefinitely.
  • Provides an indelible audit trail for the life of a trade asset between parties.

SECURITY

  • Each trade transaction is verified within the network using independently verified complex cryptography.
  • Authenticity of trade related information can be assured.

COLLABORATION

  • Allows each party to share easily and securely trade finance related data.
  • Fragmented internal systems are centralized allowing interoperability.

EFFICIENCY

  • Transactions are completed directly between trading parties with no intermediary and with digitized information.
  • Ability to operate ‘smart contracts’ which automatically trigger commercial actions.

View the infographic about the benefits of blockchain technology in trade finance here.