Bitcoin and Its Blockchain Will Shape the Future of International Trade
International trade continues to grow annually. In 2014, it exceeded USD 18 trillion. However, cargo transportation remains expensive and complex because it still requires a multiplicity of paper-based documents. For example, “Each international airfreight shipment can require more than 30 different paper documents — increasing the cost of airfreight and lengthening transport times,” according to IATA. Sea cargo transportation is also bureaucratic and complex. Moreover, transportation documents are used to commit commercial fraud.
Thus, to sustain the unencumbered growth of international free trade, the transportation industry needs to undergo a radical paradigm shift and reengineer the business processes pertaining to documentation management.
Fortunately, using the Internet of Things and the attributes of Bitcoin and its blockchain, innovative startup companies now can enhance international trade by creating business solutions that are paperless, cheap, reliable, fast, efficient, and secure.