On December 3, China made a major change to the international trade system that it has in place. However, the change was a temporary one as the country aimed to test out new technology.
China Tapped the Blockchain Technology
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On that particular day, the entire international Intermodal process was moved to blockchain technology. This was the first time China had implemented blockchain technology in the process.
This happened as China was tracking the transportation of goods. The particular transaction was going to move from Changdu, Sichua, all the way to the capital of Laos, Vientiane.
The term ‘Intermodal”, is used for transactions that require two or more two kinds of methods when it comes to transportation. The entire process impacts a single shipment.
Traditional Process of Shipments
For decades, the process of trade has involved multiple steps but the majority of them have stayed with papers.
The entire trading process involves, insurance, customs, shipping, and many more factors when conducting them on a global scale.
The biggest problem with the documents and papers is that they have to go through so many checks and so many entities involved in the process.
These entities involve customs, banks, trains, clients, and so much more. Whether the trade is being done through trucks, ships, planes, or trains, all of them involve paperwork.
The entire process can prove to be extremely troublesome in case any party ends up misplacing them. The papers always have the tendency of getting lost or torn.
Other similar things can also take place with papers making them full of risks for the entire trading process.
Another major setback when using the papers is the flow of data that gets slowed down to the lowest level. They can cause a major problem with the information flow that can cause delays and disruptions.
China Wants to Move Trades to Blockchain
Therefore, China is determined to move the entire trading process to the blockchain system. They have adopted blockchain technology to come up with a faster solution when it comes to trades.
They expect that the entire trading process would become instantaneous rather than being slowed down due to the paperwork and other manual requirements.
Chengdu wants to launch a blockchain technology that will take over the entire process of trades and the paperwork involved with it.
The teams working on the project find blockchain technology to be very reliable and quick. This way, they can guarantee that no information will be lost throughout the process.
The information will flow smoothly and streamline the entire process of trade. The parties involved will face no problems accessing the communication proofs and the authorizations from the respective countries.
The benefit of the Blockchain Technology
According to the Chinese teams involved in the project, blockchain technology will provide complete transparency in the process.
Every company and party involved will have complete visibility over the trades from their exit point to the entry point.
The process of modifying the information throughout the trades will become very convenient for the parties involved. There will be a single source of truth that every party will refer to when accessing trading activities.
The record modifications will take place in real time so every party will have transparency and up-to-date information on their end.
The companies will also find it easier to track their shipments and items through the single ledger that will be shared with them. This way, they will not be unaware of any changes to the location of their shipments or items.
China is among the countries that are determined to take blockchain adoption to the next level. The country has already adopted blockchain technology for its medical sector.
The country is expected to launch its blockchain system for traveling purposes, making things very convenient for itself plus the locals.