How Blockchain Is Helping The Digitization Of Trade Under Covid
A blockchain is a shared distributed database or ledger between computer network nodes, which serves as an electronic database for storing data in digital form. The most common use of blockchain technology is for maintaining a safe, decentralised record of transactions in bitcoin and other cryptocurrency systems.
In blockchain, data is organised differently than how data is usually stored. Each chain in a ‘blockchain’ is made up of blocks that are, in turn, made up of data. Each block has specific storage capabilities that are sealed when filled.
An Innovative Answer
International trade is intricate and frequently rife with inefficiencies. Despite technological advancements, the majority of cross-border commerce processes still rely heavily on paper and involve numerous parties. The majority of trade transactions involve middlemen; according to recent research, brokers are involved in 90% of declarations and third-party logistics companies are used by 75% of merchants.
As an answer to these inefficiencies, blockchain technology innovation ensures fidelity and security of data without the need for a third party, ensuring consumer trust.
The Digital Future
Blockchain simplifies international trade, boosts competition, and lowers transaction costs, offering solutions for trade processes. Even while blockchain has been utilised in international trade for some time, its importance has grown since the COVID-19 health crisis began, and it is anticipated to have an even bigger impact in the post-pandemic world.
It enables real-time sharing of information on the various stages of trade, optimises processes, makes goods traceable, and, among other advantages, contributes to the improvement of related public and private services. Most importantly, blockchain ensures the security of payments and financing, facilitates the verification of digital quality and origin certifications.
Since the rise of e-commerce, many individuals have had the opportunity to purchase goods from persons they’ve never met and are unlikely to ever meet. How can you be sure that the person you are transacting with is who they claim to be? After a purchase has been made, goods might not be delivered, they might not match the description, or they might otherwise fall short of quality or safety standards.
Trust is founded on faith rather than any concrete evidence, thus even though the merchant seems real, there is no way to verify this. Blockchain-based digital identities could eliminate these concerns for both major trade organisations and individual consumers.
Invest In Dubai
Investment firms have already begun to take note of the shift to blockchain and the collective move towards digitization. Those looking to invest in certain technologies that have the potential to be revolutionary should consider Bitcoin. Being a rare digital asset may help to keep its value high, and some people even think that Bitcoin may someday take the place of the US dollar as the world's reserve currency.
Many individuals are already looking for ways to make high return investments in Dubai, as a way to ensure money for retirement or to simply build wealth. This is usually done through investment companies in the UAE.
Trade digitization revolutionised by blockchain technology, which secures all transactions and makes trading in digital assets safer than ever. This is especially true in the UAE, where the regulatory environment for cryptocurrencies has improved.
To start your adventure as a digital asset investor and to make a secure investment in the UAE right away, get in touch with AIX Investment.