How The Blockchain Improve Trade Finance Process In The Financial Sector: Real Time Update

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Hello great minds,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I trust you are all doing perfectly fine and are enjoying your activities in the community as you blog freely and also promote steemit across other social media platform.

Today being a new day, I feel joy in my heart as I would be examining with you all the role the blockchain plays in enhancing trade finance process through real time update.

Please follow along in this Important discussion.

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HOW THE BLOCKCHAIN IMPROVES TRADE FINANCE PROCESS

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• REAL TIME UPDATE:

Real time update significantly improves the transparency and efficiency of trade finance process, offering several stake holders a myriad of advantages in international trade.

Unlike the traditional system where several intermediaries are involved in the sequential movement of information, the blockchain technology gives room for an instant and simultaneous update across the whole network

As we continue our discussion, we will learn the advantages of real time update in trade finance process.

TRANSACTION VISIBILITY

With the help of real time update in the trade finance process, it is guaranteed that all parties involved posseses quick access to the most recent transaction data.

The clear visibility into the transaction lifestyle helps in the provision of a comprehensive real time view of trade process and also reduces the risk of discrepancies.

RISK MITIGATION

Another implication of the blockchain technology in trade finance process through real time update is that it plays a huge role in the mitigation of risk.

Timely information on the blockchain allows for a quicker resolution of discrepancies and also a quicker identification of challenges.

Real time update alongside smart contract helps in the facilitation of automated risk assessment and and also kick-start pre-defined actions in response to specific agreement of events, eliminating the potential for errors and fraud.

FASTER SETTLEMENT

Another implication of the blockchain technology in trade finance process through real time update is that it plays a huge role in initiating a quicker settlement periods.

With the use of the traditional trade finance, there is usually a challenge of a lengthy settlement periods, and this is as a result of manual processing and verification.

A more efficient and quicker settlement process is being enabled by real time update, thus reducing the needed time for the movement of funds between parties.

SUPPLY CHAIN VISIBILITY

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Another implication of the blockchain technology in trade finance process through real time update is that it plays a huge role in the visibility of supply chain.

Alongside financial transaction, the real time update in the blockchain helps in the provision of transparency into the entire supply chain.

The movement of goods can be easily tracked by participants, participants can also monitor inventory levels and also be in anticipation of any potential disruption, this helps in the overall improvement of supply chain management.

COMPLIANCE AND AUDITING

Another implication of the blockchain technology in trade finance process through real time update is that it plays a huge role in the simplification of compliance and auditing process.

Real time update alongside the transparency of the blockchain technology simplifies the process of compliance and auditing.

A tamper-proof record of transactions can be easily accessed by auditors and regulators, and this goes a long way in enhancing accountability and also guarantee that all parties obey regulatory guidelines.

COST REDUCTION

Another implication of the blockchain technology in trade finance process through real time update is that it plays a huge role in reducing cost.

Real time update contributes greatly to a more efficient trade finance process, thus reducing the need for any manual intervention, paperwork or any reconciliation process that is time consuming.

This inturn helps in the reduction of expenses for all participants in the trade finance process

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CONCLUSION

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We have considered today some advantages of real time update in the trade finance process.

As we proceed in later times, we shall learn more about blockchain technology