Blockchain technology is a decentralized mechanism for securely recording and verifying transactions via a network of computers. Each transaction is collected into a “block,” which is connected to the preceding one using cryptographic hashes to establish an immutable chain. This transparent and safe method reduces the need for central control in a variety of industries, including banking and business-to-business operations.
- Smart Contracts: Blockchain uses smart contracts, which are self-executing contracts with predefined terms. These contracts automate and enforce the terms of an agreement, removing the need for middlemen and increasing efficiency.
- Improved Security Through Cryptography: Blockchain uses cryptographic techniques to safeguard data. Transactions are encrypted and linked together to build a chain of blocks that defy hacking efforts, increasing the security of cross-border B2B trades.
- Real-time Transparency: Blockchain allows participants to access information in real time, minimizing delays and uncertainty in cross-border transactions. This transparency fosters confidence amongst B2B partners, resulting in a more efficient and safe global business environment.
