There is a strong likelihood that the blockchain technology revenue might experience a drastic growth of over $1 trillion in World Trade, this according to a recent report from the World Economic Forum (WEF).
The June-Published White Paper
The white paper published in June made an in-depth examination into supply channel management and the significant roles that the blockchain technology will play in years to come most especially in the SMEs (small or medium-sized businesses).
According to the estimate made by the Asian Development Bank, there existed a $1.5 trillion trade deficit or trade gap which is speculated to grow into $2.4 trillion in the next seven years. The main reason for the gap being that the smaller businesses have insufficient access to credit. The report went further to state that:
“Distributed ledger technology, can reduce a large part of this gap, facilitating about $1.1 trillion of new trade volumes globally (see Figures 3 and 4). Trade allows countries to specialize in industries; it helps technologies and ideas to spread and yields economies of scale. But a major impediment stands in the way of expanding trade and making it more efficient and safe: namely, paper-intensive, manual processes.”
Past Futile Effort
There is a certain section of the white paper described as ‘Financing: Suffering under the paper monster’ which is dedicated to this issue. Where reference was made to a ‘futile’ experiment where Maersk and IBM tracked a particular shipping container from Kenya to the Netherland only to discover that the process was faulty.
The WEF also considered an advancement from the paper-based manual to the digitalized system using the blockchain technology while pointing out that:
“Paper-based, manual processes, some created centuries ago, lead to complexity and delays, introduce errors and risks, and stand in the way of reliable, real-time information gathering and tracking required for credible financing decisions.”