A new World Trade Organization (WTO) report illustrates the burgeoning effect of DLT on global trade with an estimation that the technology could add USD 3 trillion to the global economy by 2030.
WTO’s findings, entitled ‘Can Blockchain revolutionize international trade?’, incorporates not only the effects of blockchain on world trade but also how other sectors such as finance, logistics and transportation, could be impacted by DLT.
This is the second of such reports regarding blockchain technology released by the WTO. Last month, Bitcoin News covered its findings on ‘The future of world trade: How digital technologies are transforming global commerce’. In this report, WTO Director-General Roberto Azevêdo was particularly encouraged by the potential of smaller enterprises to profit from the utilization of DLTs, commenting:
“Beyond easing trade in goods, digital technologies can facilitate services trade and enable new services to emerge. The Report predicts that the share of services trade could grow from 21% to 25% by 2030. Other effects could include, for example, blockchain helping smaller businesses to start trading by supporting them in building trust with partners around the world.”
This latest report continues to outline DLT’s disruptive and influential potential in supply chain logistics; an aspect of the technology recently criticized by Ethereum co-founder Vitalik Buterin, suggesting that lower costings due to emerging technologies such as blockchain will enable smaller businesses to enter the market.
The report also touched on securing and protecting international property rights through blockchain and the building of new trade deals as a result of the efficiency, transparency and cost effectiveness of DLT. These deals could be worth up to USD 1 trillion.
The WTO does offer a note of caution going forward, suggesting that energy consumption, hacking and scalability issues need to be addressed: The report stated:
“…blockchains are highly resilient compared to traditional databases due to their decentralized and distributed nature and the use of cryptographic techniques, they are not completely immune from traditional security challenges…”
The report concludes that international trade may be transformed over the next 15 years but this can only happen with “smart standardization — and smart standardization can only happen through cooperation”.
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