This is the second part of this article. Here you can read the first part.
Among these, fraud, errors, and visibility issues stand out as critical areas requiring innovative solutions. Let’s explore more about Chainlink’s role in solving Global Trade issues.
5) Fraud
Global trade faces fraud, like counterfeits and double financing, due to poor verification and transparency. Chainlink’s technology can significantly mitigate these risks by providing immutable, transparent records of transactions and product provenance.
Example: Consider the issue of counterfeit goods in the pharmaceutical industry. Chainlink can ensure that each product’s journey from manufacturing to delivery is securely recorded on the blockchain. Through unique digital identifiers verified by Chainlink oracles, stakeholders can authenticate products in real time, effectively combating counterfeits.
Did you know that blockchain is revolutionizing the way we conduct global trade? This innovative technology provides a secure and transparent platform for recording transactions, reducing the risk of fraud and errors. pic.twitter.com/61wGa3Jmw5
— ICORBP (@icorbp_org) June 7, 2023
6) Errors
Errors such as missing cargo, duplicate payments, and inventory tracking mistakes are rampant in global trade. These problems worsen with the difficulty in real-time detection and complex transaction matching for remediation.
Example: In the case of duplicate payments, Chainlink’s smart contracts can automatically verify payment conditions against delivery and invoice records, ensuring that payments are only processed once the criteria are met. This reduces the risk of duplicate payments by providing a single source of truth for transactions.
7) Visibility
The lack of visibility across the supply chain, including the tracking of orders, shipments, and payments, is a significant hurdle. Syncing issues in backend systems, with orders split or combined, makes audits less effective for decision-making and operations.
Example: A shipment that is part of a larger order gets delayed, affecting the entire order’s fulfillment. Using Chainlink, each part of the order can be tracked in real-time on the blockchain, with smart contracts updating the status automatically. This ensures all parties have up-to-date information, allowing for better planning, coordination, and response to delays or issues.
What determines a supply chain’s health? It begins with visibility.
Here's how blockchain is bringing clarity to a chaotic supply chain: https://t.co/9kXER3TDH5 pic.twitter.com/AHGswfTSd7— Casper Labs (@Casper_Labs) May 8, 2023
Conclusion
Chainlink’s decentralized platform addresses critical challenges in the global trade industry. By ensuring fraud prevention, minimizing errors, and enhancing visibility, Chainlink not only streamlines operations but also opens up new avenues for growth and efficiency, marking a significant leap forward in the trade sector’s evolution.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
