Blockchain - Transforming the Future of Trade Finance

Trade finance systems can be the most beneficial from the Blockchain technology. The time-consuming and costly traditional trade finance process has led to the global trade finance gap reaching $1.7 trillion. Blockchain allows digital records and information to be shared in a secure, transparent, and immutable manner without relying on a single trusted third party and offers interesting promises that can transform the future of trade finance. Through a literature review, this thesis will examine the barriers and opportunities of blockchain uses in trade finance, suggest the ways that blockchain technology could transform the trade finance system, and discuss the future of Blockchain Trade Finance. Blockchain is shaking up the sector and requiring established financial institutions to adapt. If the recently developed applications are successful and interoperability issues are resolved, allowing for the connecting of various payment platforms, blockchain may end up being the infrastructure for financial services in the future. Blockchain has the potential to transform international trade finance, but smart trade requires smart standardization, which can only be accomplished through cooperation. If we are successful in creating an ecosystem that promotes the ongoing development of Blockchain, international trade, particularly trade financing, will go through a significant transformation in the next ten years