Process inefficiencies in payment methods like letters of credit and Bills of lading often undermine the ability to mitigate risk. But by modeling payments as self-executing contracts on blockchain, parties across the trade finance continuum could automate contract compliance and ensure faster assured payments by preventing disputes that arise from ambiguities in payment contract terms and conditions.
Blockchain based on hyper ledger fabric can help optimize trade finance and logistics and the infor-mation shared between different legal entities by streamlining the process, speeding up the response time, providing transparency and better flow.
For example, when a shipment of assets crosses borders, it requires approvals from multiple legal entities; customs, port authorities or rail transportation firms as goods move between exporter and importer. Here, Blockchain can be used to sign approvals, notify all parties that the asset has arrived and ultimately transfer the money from the importer to the exporter’s bank.
Of course, encryption is an integral part of the solution to ensure that the transactions stay private and confidential. The hyper ledger fabric (which powers emBlock) helps manage authentic, permis-sioned, secure access and engagement.
Blockchain has moved from a concept to a compelling technology powering many experiments that could very well alter the way many industries work over the next decade. We at eMudhra, are set to help you make the shift.
Learn how eMudhra can make blockchain right for your business by getting in touch with your account manager.
View the brochure here, or get in touch with us to learn more
For more information on what we do, please visit www.emudhra.com