Monday, February 26, 2018

INTERNATIONAL TRADE AND BLOCKCHAIN


Much on blockchain reflects a single one buyer-one seller direct transaction. International trade thought has multiple transactions with multiple stakeholders and participants at multiple levels at multiple time and different roles with multiple Incoterms.  The different roles can be obvious such as the product buy and the ocean shipping.  But there are other players that are behind the scene—trucking to/from the port, terminals, etc.  There are also transactions between them that are “hidden”/indirect from the product buy/sell and ocean freight buy/sell.  For true supply chain custody, control, and visibility, all transactions on multiple ledgers should be integrated to achieve the desired supply chain benefits.  There are also sub-plays, such as whether and how a smart contract pay defaults as an ocean transport shipping/service contract—and an built-in audit.  The complexity of international expands the blockchain and distributed ledgers, and they should be brought together.






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