Blockchain Technology is the Solution for Foreign Trade Uncertainty: Report
A report by the Bernhard Dachs from the Austrian Institute of Technology brings forth a positive potential picture for blockchain technology along with artificial intelligence. The research was on behalf of Austrian Federal Ministry for Digital and Economic Affairs, as per Cointelegraph reports.
Blockchain technology is becoming increasingly dominant in the digital economy and sectors that are focusing on cryptocurrency adaptation. Moreover, some of the best advantages of using blockchain technology are to receive transparency in your trades as well as security for the anonymous profiles without binding the enterprises to blind trust. So even with a volatile market in function, the current scenario for blockchain hasn’t changed, and has instead, shown signs of growth as per the reports.
But a place where blockchain technology can test its ability is in the increasing uncertainty in the evolving sector of foreign trade. The new policy brief by the Austrian Research Center International Economics suggests that the reports see a positive digitization effect, along with blockchain technology solutions, especially when it comes to the export economy.
Bernhard Dachs’ reports say that there can be a potential use of blockchain technologies which can further help in securing the foreign trades and exports by initiating a safe transaction system that can help in reducing the trading uncertainty. It can be the decentralized ecosystem that can help in reducing the cost of processing export guarantees by a considerable gap.
However, to achieve the goal, Dachs mentions the obstacles that the platform like blockchain technology needs to overcome formerly. One of the major contributing factors is that blockchain must get wide acceptance in the mainstream economy, especially among the banking sector. Once the institutional firms have the blockchain adoption system, the Austrian import and export trades can visualize a significant benefit in the future.
At the end of the report, Bernard Dachs writes, “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.”
The report has a good reason to emphasize the region for strengthening digital industry with the help of blockchain technologies, as Austria ranks at 11th among state members on Digital Economy and Society Index. The country can develop from the scientific implementation of evolving industrial launches to promote growth enhanced by blockchain assistance.
Several major enterprises are finding their guidance from blockchain technologies to overcome certain obstacles in their route of work and to sustain smooth management. But, it is surprising to know how a blockchain solution can improve the long-pertaining uncertainty of transactions when it comes to foreign trades and export sectors.