Research On The Impact Of Blockchain Technology On International Trade

In past decades,International Trade has experienced tremendous growth and it has become one of the most important drivers of global economy.International Trade brings economic growth,wealth and opportunities.However,despite its fundamental importance for global economy,International Trade is exceedingly inefficient.Information asymmetry and a hodgepodge of companies,governments,regulations,languages and cultures have impeded standardization and technological advancement.Actors of International Trade rely on paper-based communication and make intense use of intermediaries to deal with information asymmetry.As a result,trading has become expensive and time-consuming.Research has identified Blockchain Technology as a potential tool for overcoming complex processes and information asymmetry.In fact,Blockchain Technology allows for direct communication and direct transactions between partners that lack mutual trust.Hence,this new technology removes the need for intermediaries such as brokers,banks,insurances and lawyers and thereby it drastically accelerates trading processes while cutting costs at the same time.In addition,Blockchain technology can break-up organizational silos and it allows for better collaboration between the participants of International Trade;it can replace current document-flow approaches and build entire economies in pure software.This thesis analyzes the impact of Blockchain Technology on International Trade.The analysis includes opportunities and threats for individual trade participants such as manufacturers,distributors,wholesalers,retailers,postal services,couriers,freight forwarders,international carriers,customs agents,importers,exporters,banks,insurances and government agencies.In addition,the analysis includes an aggregated view on the impact of Blockchain Technology on the entire industry of International Trade.Besides this central impact analysis,this thesis builds a technological foundation by exploring underlying mathematical principles,the basic Blockchain architecture,and central Blockchain implementations such as Bitcoin,Ethereum and Hyperledger Fabric.Furthermore,a thorough literature review and a technology review are included.Finally,a case study and the author's conclusion will round up research.