The World Trade Organization (WTO) released a report on November 27, highlighting the potential of blockchain in international trade. According to the WTO, blockchain revolutionizes global trade by offering unprecedented levels of transparency, security, and efficiency. The study estimates that the technology’s global economic impact could reach $3 trillion by 2030.

Titled “Blockchain and International Trade: Opportunities, Challenges, and Implications for International Trade Cooperation,” the report explores blockchain’s applications across industries such as customs clearance, trade finance, logistics, and transportation. It also outlines challenges that need to be addressed for widespread adoption.

The WTO notes that blockchain could improve transparency in intellectual property management, government procurement, and fraud prevention. In logistics, it can enhance supply chain tracking and authentication. The report also emphasizes the benefits for micro-, small-, and medium-sized enterprises (MSMEs), which could leverage blockchain for new business opportunities.

Blockchain Trade Challenges

Despite this good news, there are some warnings. The study identifies key challenges that must be addressed first. These include security issues, energy consumption, and limited scalability due to predetermined block sizes.

The report notes an important point about blockchain resilience. “Blockchains are highly resilient compared to traditional databases due to their decentralized and distributed nature and the use of cryptographic techniques,” it states. However, they are not completely immune from traditional security challenges.

The study emphasizes building a multi-stakeholder approach. This is essential for finding appropriate use cases in cross-border trade. The WTO believes blockchain technology needs proper frameworks. These frameworks should ensure transactions spread across jurisdictions. They must also provide clear legal status and ensure network interoperability.

The report concludes with an optimistic outlook: “Blockchain could make international trade smarter. But smart trade requires smart standardization. Smart standardization can only happen through cooperation. If we succeed in creating an ecosystem conducive to blockchain development, international trade could look radically different in 10 to 15 years.”

In conclusion

The World Trade Organization has released a study on the effect of blockchain technology on international trade. According to the report, blockchain revolutionizes global trade with the economic value it will add on a global scale potentially reaching about $3 trillion by 2030.

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