7BUSS013W
University of Westminster
UK
For some years now, blockchain technology has been a hot issue in the world of technology and finance. It can completely transform how we communicate with one another and do business by establishing a safe and open digital ledger that is accessible to all network participants. Blockchain technology can significantly streamline and improve the many procedures involved in international commerce, from the recording of transactions to the execution of contracts.
However, there are hazards involved with implementing blockchain technology in global trade. Due to the decentralized nature of blockchain, no centralized body is in charge of monitoring the network and making sure that transactions are safe and free of fraud (Ali et al. 2021). It may be challenging to resolve conflicts and follow the flow of goods and services due to the lack of transparency and accountability that might emerge from this lack of centralized authority.
It is crucial to thoroughly investigate the current state of the technology, the difficulties regulators and businesses have implemented it, and any potential solutions to these difficulties to fully comprehend the potential advantages and risks of blockchain technology in international trade (Dutta et al. 2020). By examining the relevance of blockchain technology and its risk impact on global commerce, this study proposal seeks to do precisely that.
A thorough analysis of the most recent studies on blockchain technology and its uses in global commerce will serve as the foundation for the research (Katsiampa 2019). This will include a review of recent case studies of blockchain implementations in different sectors as well as a study of the many difficulties that businesses and authorities have encountered in using the technology.
Blockchain technology is a comparatively new phenomenon, and the parties have limited clarity about it. Implementation of the technology puts forth different difficulties for firms and regulators. It will be suitable in having an effective trajectory to use the technology and chalk out possible solutions to these difficulties. Ambiguity in the system leads to issues in the effective contemplation of international trade. Hence, this research is very significant in discussing the implications of blockchain technology in the current business scenario. The study will end with a discussion of the results' implications for organizations, regulators, and decision-makers to provide plausible solutions to blockchain issues.
This study investigates the key challenges faced by businesses and regulators in adopting blockchain technology in international trade. It also strives to identify the main barriers to adoption, such as scalability, interoperability, and the difficulty of resolving disputes, and to understand how these challenges can be overcome.
The study will be of interest to businesses, policy makers, academics, and investors who are interested in understanding the significance of blockchain technology in the context of international trade (Alsharari 2021). The findings of this study will provide valuable insights into the potential benefits and risks associated with blockchain technology. It also focuses on the impact of blockchain on international trade and inform the development of policies and strategic management that support the adoption of blockchain technology in the trade sector.
The study examines potential solutions to the challenges faced by blockchain technology in international trade. It also identifies the best practices and initiatives that can help overcome the challenges faced by businesses and regulators in adopting blockchain technology in international trade.
The main findings from the study will be emphasized in this debate, along with suggestions for further research on blockchain technology and its effects on global commerce (Morkunas, Paschen and Boon 2019). The purpose of this study project is to offer a thorough analysis of the value of blockchain technology and its risk impact on global commerce. It intends to offer useful insights for companies, regulators, and policymakers as they think about implementing blockchain technology in their operations by bringing together the most recent research and professional viewpoints on the subject.
The goal of this study is to offer suggestions for companies and authorities on how to adopt and use blockchain technology in global commerce. The goal is to offer useful advice that can be put into practice to make sure that technology is utilized responsibly, securely, and to the fullest extent possible to enhance global commerce.
The study aims to investigate the significance of blockchain technology and its plausible risk on international trade.
Gaur & Gaiha (2020) put blockchain technology as an advanced database that facilitates the efficient sharing of information within the business platform. As the name suggests, a blockchain is composed of blocks that store data in those blocks that are amassed as a chain. Cao (2022) thinks that blockchain offers a higher level of security and consistency to the data as one cannot remove the data easily. In most cases, it is out of reach of the hackers paving for its security and stability in upholding useful data and information. Thus, blockchain technology stands for an alternative mechanism in terms of a digital record to track orders, process payments, and contemplate other transactions. Park & Park (2017) pointed out that blockchain maakes it virtually possible to track anything that is valuable alongside reducing risks and saving costs.
For a while now, blockchain technology has been the center of attention, and it can completely change how we connect and do business (Siddik et al. 2021). International trade may gain a lot from blockchain's decentralized and secure nature, including enhanced security, efficiency, and transparency. The key benefits of blockchain technology is to deliver increased efficiency, security, and transparency. However, there are dangers and difficulties associated with using blockchain in international trade, including a lack of regulation and the difficulty in settling disputes (Chang, Chen, and Wu 2019).
The purpose of this literature study is to present a thorough assessment of the state of knowledge on blockchain technology and its uses in global trade (Balci and Sururcu-Balci 2021). The assessment will look at the advantages and dangers of blockchain in global commerce, the difficulties firms and authorities are now having to embrace the technology, and possible solutions to these difficulties (Katsiampa 2019). Blockchain technology is associated with an increased efficiency, security, and transparency. Simultaneously, risks are associated with the technology, such as the lack of regulation and standardization.
Transparency in Blockchain –
Increased transparency is one of the key advantages of blockchain technology for international trade. Because blockchain is decentralized, all participants in the network have access to the same data, which may significantly increase transaction transparency. This might increase record-keeping accuracy and decrease fraud and corruption (Zhai and Tan 2021).
Efficiency in Blockchain –
Increased efficiency is another advantage of blockchain in international trade. Blockchain may considerably streamline the procedures involved in international commerce and cut down on the time and resources needed to accomplish them by digitizing the numerous processes, including the recording of transactions and the execution of contracts (TUsek, Jezovita, and Halar 2021). For small and medium-sized businesses (SMEs), who frequently struggle with the complexity of the traditional trade procedure, this can assist to boost the speed and efficiency of international trading (Jena 2022).
Another significant advantage of blockchain technology in global trade is security. Transactions are safeguarded against fraud and cyber threats because of blockchain's decentralized security (Saberi et al. 2019). Additionally, the implementation of smart contracts can assist in ensuring that all network participants follow the terms and conditions of a transaction, lowering the chance of disagreements and fraud (Rana, Tricase, and Cesare 2021).
Blockchain technology has a wide range of potential uses in global trade, but it also comes with several hazards and obstacles. The key challenges faced by businesses, such as scalability, interoperability, and the difficulty of resolving disputes (Gaur & Gaiha, 2020). It also faced challenges by the regulators, such as the lack of a legal framework and the need for standardization. The absence of standards and regulations is one of the major issues. Blockchain is a decentralized system, therefore there isn't a single organization in charge of monitoring the network and making sure that transactions are safe and free of fraud (Wang, Han, and Beynon 2019). It may be challenging to resolve conflicts and follow the flow of goods and services due to the lack of transparency and accountability that might emerge from this lack of centralized authority (Park & Park, 2017).
The problem of dispute resolution presents another hurdle for blockchain in international trade. It can be challenging to identify who is accountable for a specific transaction and to settle any disputes that may emerge since transactions are recorded on a decentralized ledger (Shanaey et al. 2020). This can be especially troublesome in international transactions when many legal systems might be in play. Hence, it is necessary to understand the challenges faced by businesses and regulators in adopting blockchain technology in international trade.
Another significant issue for blockchain in international trade is scalability. The volume of data being handled might become overwhelming as the number of transactions on the network rises, slowing down the system and raising the possibility of data breaches (Zhai and Tan 2021). For SMEs who lack the funds to invest in the required gear and software to operate massive blockchain networks, this can be especially troublesome (Wang, Han, and Beynon 2019). Thus, it is crucial to identify potential solutions, such as the development of regulatory frameworks and standardization protocols in the network. The phenomenon helps to overcome the challenges faced by businesses and regulators in adopting blockchain technology in international trade.
Many potential solutions may be used to address the issues that blockchain is facing in global trade. The creation of legal frameworks that advise on the use of blockchain in global commerce is one of the most crucial answers (Lombardi et al. 2022). This can lessen the risk of fraud and other security issues by ensuring that the technology is utilized responsibly and securely. This study comprehends how blockchain technology is affecting global trade. Examining how blockchain technology affects trade operations' efficiency and security, including how it reduces fraud and enhances supply chain management.
The creation of standardized standards that make sure everyone utilizing the network is using the same tools and techniques is another possible answer.
Blockchain technology has been rapidly evolving since its inception in 2009. Over the years, it has moved from being just a concept to being widely used across various industries, including supply chain management, finance, and digital identity verification (Cao, 2022). The continued growth of the technology has been fueled by investment from large corporations and financial institutions, as well as the establishment of blockchain consortia and partnerships aimed at exploring its potential.
In recent years, blockchain technology has faced challenges with scalability, security, and user adoption, leading to a period of consolidation in the industry (Gaur & Gaiha, 2020). Despite these challenges, technology has continued to grow and mature, with an emphasis on the development of more mature and enterprise-ready blockchain-based solutions.
The future of blockchain technology looks promising, as it has the potential to revolutionize the way businesses and individuals interact, with increased security, efficiency, and transparency (Park & Park, 2017). However, technology also faces significant regulatory hurdles, as well as the need to overcome the challenges of scalability, security, and user adoption.
While blockchain technology has evolved over the last decade, there is quite much to be done to fully realize it’s potential. The ongoing growth and development of technology, combined with the continued investment from large corporations and financial institutions ranges on (Min, 2019). It suggests that blockchain technology strives to play a progressively vital part in the upcoming future. The security aspects ought to be taken care for a greater acceptance of blockchain technology in the market (Wang, Han, and Beynon 2019). As international trading is getting digitized, blockchain technology will play a significant part. Thus, the risk factors need to be addressed for a better result in the contemporary market.
Research philosophy strives to draw a suitable projection of the study and a fundamental element for its rightful completion (Creswell, 2019). Research philosophy are of three kinds – interpretivism, realism, and positivism. The interpretivism research philosophy considers the human aspects of the study alongside the scientific angel. Again, the realism research philosophy deals with the real-life implementation of the study to extract a suitable result. Lastly, the positivism research philosophy explores the data, information, and facts for the research purpose (Bairagi & Munot, 2019).
This particular study considers the positivism research philosophy to explore the sorts of data and facts. These information strives to comprehend the significance of blockchain technology in the existing business scenario. It will also help to point out the plausible risks to international trade owing to the greater use of blockchain technology.
Research approach is an organized strategy that the researcher uses to contemplate the study efficiently (Zikmund, et al., 2019). It is of two types – deductive and inductive research approach. The inductive research approach undertakes a generalized approach rather than focusing on any particular aspect. Contrarily, the deductive research approach adopts a given framework and organizes the study based on it.
The researcher undertakes the deductive research approach to focus the study on the significance of blockchain technology. It also needs to deduce the sorts of risks that blockchain technology poses on international trade scenario, hence deductive research approach is justified.
Research design stands for an effective research planning to extract the suitable research tactics to contemplate the study rightfully. Research design is of three types – descriptive, exploratory, and explanatory. The descriptive research design runs a broad description on the matter whereas, explanatory research design entails a subjective approach for the study purpose (Zikmund, et al., 2019). Lastly, the exploratory research design carefully explores the facts and information sourced to align the same with the paper’s objectives.
In this case, the scholar uses the exploratory research design to go through various data, facts, and information. The researcher strives to collect sorts of numerical data and figures to find out how blockchain technology is making a significant difference in the contemporary business scenario (Snyder, 2019). It also explores the sorts of risks that the technology may pose in the trading trajectory internationally. The data and information have extensive use like formulating hypotheses to run effective tests to reach a suitable research outcome.
The researcher is required to choose a particular sample from the varied subset population. Sampling is a significant element to identify the appropriate population for the study and extract suitable outcomes.
The sampling for this research study will be purposive and non-probabilistic as it deals with secondary data. This means that the sample will be selected based on specific criteria and characteristics that are relevant to the research question, rather than through random selection The sample will be selected based on the criteria of relevance, reliability, and validity of the data. The sample will consist of data from academic journals, books, reports, and websites that provide information on the use of blockchain technology in international trade and its influence on the efficiency, transparency, and security of the trade process.
The sample size for this study will depend on the accessibility of relevant information and the time constraints of the study. The data will be analyzed qualitatively to identify the key trends, challenges, and opportunities associated with blockchain technology and its effect on transnational trade.
Data forms the integral part of the study having due impact on the direction to which the research leads to (Creswell, 2019). The researcher takes utmost care in selecting the appropriate data to enhance the study. Data are of two types – primary data and secondary data. The researcher amasses primary data by conducting surveys and interviews of the respondents, these are the first-hand information. Besides, the secondary data are the resources that are already existing and the researcher needs to choose the relevant materials for the study. The researcher selects secondary data collection for this particular study.
A key component of this research project will be the collection of secondary data (Bairagi & Munot, 2019). The goal of secondary data collecting is to compile information that already exists on blockchain technology and how it affects global trade. Academic publications, official documents, news pieces, and internet databases will all be used as secondary data sources.
Academic publications will offer useful details on the state of current research and understanding of blockchain technology and its effects on global trade. News pieces will offer insights into the most recent trends and developments in the area, while government publications will provide information on the laws and rules governing blockchain technology and international trade. Online databases will offer information on the volume and value of international commerce as well as how blockchain technology is changing these measures, such as the World Bank's database on global trade.
Data analysis examines the research data that the researcher collects for the purpose of study. It is a crucial part of the study and data analysis are of two types – qualitative data and quantitative data. Qualitative data analysis is concerned about the subjective matters to gain an insight on the study (Snyder, 2019). Again, the quantitative study focus on numbers, figures, data, and other numerical determinants to validate the flow of the study. The researcher can present the numerical figures through graphs and different info-graphics for a better analysis and understanding (Bairagi & Munot, 2019).
Through quantitative study, the researcher can attain the desired outcome. So, the researcher chooses quantitative study or analysis to learn the significance of blockchain technology and its associated risks. The researcher will use descriptive statistics to assess quantitative data, including survey-derived numbers. For this, the study will use the elements of mean, mode, and median as measures of central tendency. It also uses standard deviation (SD) as measures of variability, and measures of association in descriptive statistics to summarize the data (correlation). Statistical analysis of the data will be performed using relevant software, such as SPSS or R.
The study considers secondary data and quantitative data analysis for the purpose. Accordingly, the researcher exploits the numbers and data to run a comprehensive analysis on the blockchain technology and its implications in international trading. Thus, the researcher engages in quantitative study – descriptive statistics and regression analysis.
One method of analysis is descriptive statistics, which will provide a summary of the available data, including measures of central tendency and dispersion measures (SD, range, and quartiles). This type of analysis will provide a comprehensive view of the data, which will help identify any trends and patterns to practice blockchain technology in intercontinental trade.
Another type of analysis that can be performed is regression analysis. It scrutinizes the rapport between the use of blockchain technology and various aspects that may impact international trade, such as cross-border transactions and supply chain management assignment. This analysis will help to identify any significant correlations and causal relationships between the usage of blockchain technology and the risk impact on international trade
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