Trade finance is one of the most attractive sectors for blockchain technology. Many of the world’s largest banks spend time on research and development. Through a consortium of 71 global financial leaders, R3CEV, much information has been discovered about the potential uses of blockchain technology.
Since 2016, R3 has conducted several pilot tests on the market to complete its research. They will continue to improve these strategies until they are ready to fully enter the market. You can browse to http://www.uprets.io to learn more about blockchain technology.
So, what are some of their potential use findings? Here is the future of trade finance with blockchain technology companies.
Monitor status and condition in real-time
One of the R3 members, ABC, is one of the major contributors to blockchain technology research. Currently, three different projects are in the process of analyzing the use of the blockchain. They are trying out exporters who ship cotton. A humidity monitor is placed inside the cartridge, which is linked to the IoT and GPS.
This monitor allows consumers to track their shipments with real-time status. In addition, they are able to assess the status of their product during its course.
Eliminate unpaid payments
A growing problem for grain producers is the financial loss due to the insolvency of the trade. Approximately $ 50 million was lost in 2014 as a result of this activity.
It takes about 4 to 6 weeks for a farmer to receive payment for his shipments. At this point, conflicts often arise between farmers and buyers about payment complications.