Blockchain Technology Able to Decrease Risk in Foreign Trade

These days all massive firms, especially tech firms are adapting to blockchain technology. Recently, research was done to examine the possible effects of blockchain on transactions and foreign trade. It was conducted by the Austrian Research Center International Economics (FIW).

Bernhard Dachs has prepared the report on behalf of the Austrian Federal Ministry. He is from the Austrian Institute of Technology. The report was made for Digital and Economic Affairs and creates a positive impression of blockchain technology and artificial intelligence (AI).

Dachs marked that, the first requirement is the wide acceptance of blockchain technology, especially in the banking sector, so that Austrian import and export relations can fairly benefit from the technology.

He also believes that blockchain technology could make transactions in exports more secured and that can decrease the risk and uncertainty. Plus, the decentralized technology could contribute to “substantially reduce the cost of processing export guarantees”.

Further, he added, “Services, in particular, can expect significant gains in automation and tradability from new technologies such as blockchain or AI, which will provide significant momentum to these industries. The development of new service offerings could prove to be a growth driver for Austrian companies “.

Notably, among all the member states of the E.U. Austria has obtained 11th rank on the Digital Economy and Society Index. With this, the report profusely states that science and industry need to be consolidated in the evolution of new digital opportunities so that Austria can take a significant role in future innovation.

Apart from that, IBM is already involved in its first pilot projects with the logistics company Maersk to map existing freight documents in a blockchain. Apparently, the port of Hamburg, Germany is also developing a project in the present called HanseBloc, which will ensure the secure electronic exchange of bill of lading via blockchain.