Blockchain is a form of data retention that provides verification, assurance, and transparency without the need for central authorities. Since it is accessible to everyone, it can be thought of as a transparent account book that makes it easier to follow the transactions made in the business world. A Blockchain network can follow accounts, orders, payment transactions, production, etc. It can be shared and used by anyone in P2P (peer-to-peer) form but cannot be changed. There are many parties and many transactions involved in international trade processes. Blockchain system offers a faster, decentralized, therefore more secure and paper-free, more affordable way.
SO HOW DOES BLOCKCHAIN WORK?
Each job to be executed is recorded as a data block. These operations show the movement of a tangible product or an abstract idea. Data files can record information such as when, who, where, how much, and perhaps in what situation. Each block is linked to the previous and next blocks. And each block has a code called “hash” as if it were a unique fingerprint. It serves to create a secure summary of the data, as the output will be the same length, no matter how long or different the input. As an asset moves from one place to another or changes ownership, these blocks form a data chain. Blocks verify the exact time and order of transactions. The blocks are securely connected to each other to prevent any block from being replaced or another block from being inserted between two existing blocks.
BLOCKCHAIN APPLICATION AREAS
When it comes to trade and transfer, Blockchain is a fast, cheap, efficient, and secure system for both individual and corporate-scale transfers, as it is a decentralized, transparent data retention system open to everyone and provides the verification stage in transfers without requiring third parties or official authorities. It provides a more convenient and reliable alternative for us in terms of facilitating the summary and follow-up of the transactions made in the field of foreign trade, official documents, and the verification of these documents.
In summary, there are many Blockchain-based projects that will facilitate and shorten foreign trade processes, reduce costs, errors and risks, save time and thus increase trade volume. And thanks to technological developments, the applicability, and future of this system are quite promising.
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