CRYPTO ACADEMY WEEK 6 HOMEWORK POST FOR [@gbenga]||15-03-2021||All About Blockchain Security 2||

source

Good evening all.The Steemit Crypto lecture has been of great help to me.It has exposed me to a lot of knowledge about the operation of cryptocurrency.
I thank Professor @gbenga for presenting this lecture for week 6.Here comes my entry.

INTRODUCTION

Almost every sector of life such as business,finance,health,tradefinance,education, government etc requires a record of their transactions which is stored in a ledger(offline or online).

However these records are NOT secure and accessible to everyone.As such they could get missing,erased or manipulated at different points.

Hurray, blockchain is a record or ledger where transactions are recorded electronically in blocks with the information/data open to everyone and cannot be deleted or manipulated by anybody.

Thus blockchain offers high level of security.It is the future of data storage for secure and immutable transactions.

SECURITY BENEFITS OF BLOCKCHAIN IN THE TRADE FINANCE INDUSTRY

What is TRADE FINANCE?

TRADE FINANCE INDUSTRY is simply the industry involved in the domestic or international transaction between a seller and a buyer with the help of intermediaries like banks or other financial institutions.

This means that TRADE FINANCE involves activities or transactions between a seller and buyer which is facilitated through banks or any other financial body.The buying and selling involved in TRADE FINANCE could be domestic or international transactions.

Transactions involved in TRADE FINANCE include:

•Lending
•Export Credit
•Insurance
•Issuing letters of credit
•Factoring

SECURITY BENEFITS OF APPLYING BLOCKCHAIN IN TRADE FINANCE INDUSTRY

In the earlier paragraph,I said that blockchain makes data or transaction open to everyone and as such cannot be deleted or manipulated by anybody.

Applying blockchain in the Trade Finance Industry will offer these benefits.

•TRANSPARENCY
Blockchain being a distributed ledger technology makes business transactions and agreements to be transparent as both parties in the business can see the whole transaction and none of the parties can tamper with or hide or defraud another.

This makes blockchain a good alternative in the Trade Finance industry.
Transparency will make it impossible for any party in the business transaction to shortchange the other.

•AUDITABILITY
The presence of blockchain in the Trade Finance industry will make transactions to be recorded in sequence and indefinitely too.

When transactions are recorded sequentially,it makes for easy and perfect audit.It also offers a single source of truth.

•TRACEABILITY
It is Crystal clear that blockchain existence in the Trade Finance industry will make imports and exports to be traced with ease.

Interestingly,Importers and exporters will leverage in blockchain to track the present location of goods and asset information alike.

•EFFICIENCY
Unarguably blockchain incorporation into the Trade Finance industry would improve efficiency in transactions between the buyer and seller.

When a system is efficient,it would take less-time to complete transactions.

The efficiency of blockchain will also help to run smart contracts in an automated form.

•SECURITY
This is the utmost benefit of blockchain in the Trade Finance industry.Each transaction in the blockchain technology is very secure with cryptography.

Security offered by blockchain will help the Trade Finance industry will make transactions to be tamper-proof and verifiable by all parties involved in the transaction.

IMPACT OF CRYPTOCURRENCY ON THE TRADE FINANCE INDUSTRY

Cryptocurrency (digital currency) will make a lot of impact in the Trade Finance industry through the following ways.

•EASE OF TRANSACTION
With the Introduction of Cryptocurrency in the Trade Finance industry.Buyers and Sellers can perform transactions without third parties like banks.

This approach makes the buying and selling transaction to be done with the highest possible ease.

•LESS COST
Banks and other financial institutions charges commission,brokerage fees and other transaction fees for transactions in the Trade Finance industry.

However,the Introduction of Cryptocurrency(which is Peer-to-Peer transaction)will save the parties involved in the buying and selling from such bank charges and delays in transaction.

•SMART CONTRACT
Cryptocurrency which relies on the blockchain technology will make Smart Contracts possible in the Trade Finance industry.

•IMPROVES INTERNATIONAL TRADE
Since international trades involves one country and another.Financial instructions charge high exchange rates, transaction charges, interest rate among other fees.

The impact of cryptocurrencies in the Trade Finance industry will eliminate the exchange rates, interest rates, transactions charges among other levies usually imposed by other countries.

•TOP-NOTCH SECURITY
The impact of Cryptocurrency on the Trade Finance industry cannot be complete without mentioning top-notch security.

Cryptocurrency transaction is safe on the blockchain via cryptography.Therefore trading with cryptos is highly secure and the transactions cannot be tampered by any central body or third parties.

CONCLUSION
Introducing blockchain technology and cryptocurrency in the Trade Finance industry will do a lot of good to the sector.

It would improve security,ease, transparency,and efficiency in the Trade Finance industry.

It would also offer smart contract, Peer-to-Peer transactions,and ease in domestic and international transactions between the various parties involved in the Trade Finance industry.

References
Reference
Reference

Special thanks to Professor @gbenga @steemcurator01 @steemcurator02 @trafalgar