The growth and sustenance of the $8 trillion global trade finance market relies heavily on the ready availability and robustness of financing mechanisms. Given that trade finance is widely seen as fueling global trade, it is easy to see why blockchain is dominating the conversation in the world of trade finance.
Current trade finance is inefficient and the industry is highly vulnerable to fraud. Paper processes from our analog past urgently need to be modernized or replaced with digitized processes. Blockchain will play a major role in this transformation.
Blockchain can reduce processing time, eliminate paper usage, and save money while ensuring transparency, security, and trust. By removing bad trading partners and forcing everyone to trade fairly in a new transparent way, the risk of manipulation by chain participants is virtually eliminated.