Blockchain Technology and Trade Finance

The assignment provided is a questionnaire-based assessment that evaluates understanding of blockchain technology and its applications in trade finance. The questions cover various aspects, such as transaction costs, central authority control, impact on trade financial transactions, safety and automatic execution of transactions, cost-effectiveness, document exchange security, user expectations, privacy and security, data encryption, secure transactions, transparency in location and ownership, document approval and review, trade finance process streamlining, creation and distribution of digital ledger transactions, smart contracts, ecosystem catalyst, record sharing with compromised privacy, partnership growth, business exploration, innovation, and potential for business growth within the industry.

The Accounting & Finance Subject Group
Blockchain's role and application in International trade finance.

1.1.1 Abstract
Aim:
This study considers the potential role for blockchain technologies in international trade,
specifically how such technologies might affect trade finance, customs procedures, and
provenance (origin) of goods. For trade finance, blockchain could reduce the expense and time
required to facilitate trade that depends on third-party lending or insurance. For customs
procedures, blockchain could reduce costs, expedite customs procedures, and boost both global
trade volumes and economic output more than the worldwide elimination of tariffs. Numerous
efforts are underway to explore the benefits of blockchain as well as how to mitigate its risks for
international commerce.
Research importance:
This study provides an overview of an emerging field – Blockchain adoption to revolutionize
trade finance – in which not much research yet exists, and most publications remain very vague.
The next actions that researchers, developers, regulators and businesses interested in blockchain
need to take are pointed out and reasoned.
Research method:
The research adopts a pluralist approach to examine the subject matter based on three
approaches: analysis of the extant literature about blockchain technology concerning trade
finance transactions; perception analysis based on interviews with financial services executives,
subject matter experts, and researchers; and a theoretical interpretation using through the lens of
transaction cost and cross border trade finance theory A pluralist approach that compares and
contrasts multiple plausible perspectives on reality is crucial to the emergence of rigorous
scientific knowledge (Azevedo, 1997; Van de Ven, 2007) as it can provide complementary
insights and possible synthesis of them to study an emerging business phenomenon.
Furthermore, using multiple perspectives on a complex business problem decreases the
likelihood of unintended bias in interpretations

Research findings:
As of September 2019, Blockchain based systems painfully lack the enterprise maturity needed
to take over trade finance activities. Nevertheless, blockchain technology in the trade finance
process is about the digitisation and automation of the current process thereby reducing
turnaround time from about 7 – 14 days to just 24 hours or near real-time, thus making faster
settlements. This digitization takes away the paper process of dispute resolution, contract
agreement, document presentation, confirmations, verifications, approvals and the tracking and
tracing of shipments.
Finally, the disintermediation provided by blockchain applications has the potential to disrupt
traditional financial services transactions through the use of smart contracts and distributed
ledgers for clearing and settlement process.
Keywords:
Blockchain technology, Trade finance, use of Blockchain in import-export
2.1.1

TABLE OF CONTENTS
1.1.1Abstract....................................................................................................................................2
4.1.1Chapter 1: Introduction............................................................................................................6
1.1 Research background ............................................................................................................6
5.1.1Trade Finance: A Definition....................................................................................................6
6.1.1Traditional Trade Finance .......................................................................................................6
7.1.1Blockchain: An introduction....................................................................................................7
1.2 Research scope: Relevance and knowledge gap in research ................................................8
1.2.1 Practical problem formulation ...........................................................................................9
1.3 Knowledge gap and research contribution ..........................................................................10
1.4 Research Questions and Objectives:....................................................................................10
Thesis Structure ........................................................................................................................11
9.1.1Chapter 2: Theoretical foundation ........................................................................................12
2.1 Trans-national trade of goods life cycle ..............................................................................12
2.2 Blockchain in international trade context............................................................................12
10.1.12.2.1 Tracking ownership of cargo .....................................................................................13
11.1.12.2.2 Digitized wallets and tokens ......................................................................................14
12.1.12.2.3 Smart contracts ...........................................................................................................15
2.3 Blockchain platforms...........................................................................................................15
2.4 Blockchain technologies .....................................................................................................16
13.1.12.4.1 Hyperledger: ..............................................................................................................17
14.1.12.4.1 Ethereum ....................................................................................................................17
15.1.12.4.1 Corda R3.....................................................................................................................17
2.5 Transnational trade theories ................................................................................................17
16.1.12.5.1 Trade finance theory ..................................................................................................18
17.1.12.5.2 Transaction cost theory ..............................................................................................18
20.1.1Chapter-3 Literature review.................................................................................................19
3.1 Blockchain Overview...........................................................................................................19
3.2 Modes and method of payment in international trading finance ........................................20
3.3 Blockchain and trade finance...............................................................................................21
21.1.1Letter of Credit (LC) ...........................................................................................................23

22.1.1Supply Chain Finance (SCF) ..............................................................................................24
23.1.1Structured Trade and Commodity Finance .........................................................................24
24.1.1Overview of Export and Agency Finance (ECA) ...............................................................25
25.1.1Trade Credit and Political Risk Insurance ..........................................................................25
3.5 Trade finance scope (Problems that can be addressed through Block Chain).....................25
26.1.1Chapter 4 Research Methodology, Design and methods.....................................................27
4.1 Research design...................................................................................................................27
4.2 Research Approach..............................................................................................................28
4.3 Research philosophy............................................................................................................29
4.4 Research Sampling...............................................................................................................30
4.5 Data Collection....................................................................................................................31
4.6 Data Analysis.......................................................................................................................32
4.7 Ethical Considerations.........................................................................................................33
4.8 Research Limitations...........................................................................................................34
27.1.1Chapter 5: Research Analysis and Discussion of result.......................................................36
5.1 Efficiency.............................................................................................................................36
5.2 Security, product integrity and privacy................................................................................39
5.3 Blockchain impact on Trade Finance process Improvement...............................................42
5.4 Blockchain as a catalyst for Ecosystem, alliances and partnership improvements.............45
28.1.1Chapter 6: Conclusion and Recommendations....................................................................49
Conclusion.................................................................................................................................49
Recommendations......................................................................................................................51
29.1.1REFERENCES....................................................................................................................53
30.1.1APPENDIX..........................................................................................................................56
Questionnaire.............................................................................................................................56
3.1.1........................................................................................................................

4.1.1 Chapter 1: Introduction
1.1 Research background
Over the past decades, the global economy has been influenced by the rapid growth of
financial transactions that entail trillions of dollars (Hyvärinen, Risius & Friis, 2017). With the
stiff competition among business entities, financial institutions are no exception in adopting
various technologies to remain relevant in the market. New technologies such as blockchain have
positively impacted the operations in numerous business organizations especially on financial
operations in terms of records sharing, traceability and security of the transactions and other
documents related to international trade (Ishmaev, 2017). Delimatsis, (2018) identifies three
blockchain-based financial phases: an initiation phase that requires the client to access
blockchain network before buying or selling transaction; the verification stage of the financial set
in the blockchain ledger by various Stakeholders. The third stage is validation and storage. The
verified transactions in blockchain are performed and after validation they are stored in block.
The sealed blocks with hash or lock becomes part of the blockchain network and cannot be
modified. The proposed research aims to determine Blockchain's role and application in
improving and current processes in the International trade finance .
5.1.1 Trade Finance: A Definition
Trade finance is defined as a collective set of financial products and instruments firms use to
facilitate commerce and international trade. Trade finance actually makes it more convenient for
importers and exporters to conduct business using trade (Cong and He, 2019). Trade finance
covers many financial models and solutions that companies, and banking institutions use to make
the transactions for trade feasible. It involves numerous actors, including importers, exporters,
banks, carriers, customs officials, and insurers.
6.1.1 Traditional Trade Finance
Delayed exchange of information, unprecedented low trust levels, transparency and authenticity
conflicts associated with traditional trade finance systems are often considered as the prime
factors (Blossey, Eisenhardt and Hahn, 2019). This substantially contribute to unwarranted risk
and hinders the efficiency and profit margins in international trade business operations. The

exploration and integration of Blockchain technology for trade finance will help to overcome
these issues so that trade processes can be simplified. At present trade finance consist of various
inefficiencies which makes it highly vulnerable to the frauds. For example, the paper processing
in the transactions systems must be replaced or upgraded with blockchain based solutions so that
transaction time and efficiency can be improved. The key issues associated with the trade finance
are related to documentation process and record management of import-export process. With
manual or other computer based solution it becomes challenging to provide quality management
of services. Thus through effective solution of real time access and update of records and
transparency blockchain technology has been successful in overcoming these issues.
7.1.1 Blockchain: An introduction
According to Gelsomino and et.al., (2016) blockchain is defined as the decentralized and open
ledger which allow users to track transactions by using cryptography and distributed databases. It
is the interconnection of information blocks which stores digital information in public database.
These digital information holding blocks are capable to store transaction information,
participants involved in the transactions, date, time which are regulated and characterized by
digital signature. The Blockchain data structure allows creation and management of digital
transaction ledger which can be easily shared and accessed on a digital network via
cryptography. Thus, the participants can easily update or modify the ledger statement without
any centralized authority (Hyvärinen, Risius & Friis, 2017). The blockchain technology ensures
that trade finance operations are secure and transparent so that there is direct link between trade
parties and market efficiencies. For instance the smart contracts in block chain allow
organisations to trigger commercialization on the basis of market demand or criteria. (Korpela,
Hallikas and Dahlberg, 2017). This quick and efficiency management system is widely used in
international trade finance system.
(Source: Benefits of blockchain in trade finance, 2019)
(Accessed through: https://tradeix.com/benefits-of-blockchain-in-trade-finance/)
With the help of distributed data base technology every transaction can be reflected to the
participants in just few seconds (Van de Ven, 2007). Distributed database refers to database in

which storage devices are not connected with each other through a centralized processor. Instead
various dispersed interconnected computer devices are used to share the information. Similar to
distributed database blockchain is also decentralized ledger database but there unlike database
there is not single user administrative for it. One of the key difficulties observed in the
international trade finance is to manage huge volume of documents. Blockchain uses digital
storage systems and drives to make the data storage and accessing abilities easy and convenient
so that documentation related issues can be resolved. It not only enhances the complexity but
also makes the transaction and trade costly in terms of paper flow. Blockchain technology can
help international traders to reduce this cost and process inefficiency involved in the paper flow
by replacing it with digital data (Cong and He, 2019). With the use of this technology
international traders can use a single digital document which is capable to manage all necessary
information and can be accessed and modified by all participants at the same time. It also
enhances the transparency and transaction time by unlocking capital (Hyvärinen, Risius & Friis,
2017)
Traceability is another benefit provided by the Blockchain methods. Due to vast
differences in the legal and trade regulations across different international boundaries traceability
becomes a huge challenge. Blockchain technology allows to maintain the records safely so that
participants can access the records from remote locations and their goods can be traced. It also
enables to automatically verify the authenticity of the assets so that goods and transactions can
be easily traced in international boundaries and fraud events can be eliminated (Dowling and
et.al., 2018). Thus, from the security perspective also this advanced technique enable the secure
exchange of trade associated data among various financial institutions. In the traditional trade
finance systems, the delayed exchange of information, unprecedented trust levels, transparency
and authenticity related conflicts are often considered as the prime factors which lowers the
efficiency and profit margins in the international trade. The exploration and integration of
Blockchain technology for trade finance will help to overcome these issues so that trade
processes can be simplified. At present trade finance consist of various inefficiencies which
makes it highly vulnerable to the frauds. For example, the paper processing in the transactions
systems must be replaced or upgraded with blockchain based solutions so that transaction time
and efficiency can be improved.

1.2 Research scope: Relevance and knowledge gap in research
The research topic is highly relevant for the present context. With the rapid year-over-
year growth of transnational trade transactions, both in terms of volume and amounts , there
has been rapid growth in the trade finance services. However, with this growth the existing paper
based and long processing system give rise to various security vulnerabilities. Thus, it is vital to
understand the blockchain solutions so that efficiency can be improved and fraud vulnerabilities
can be minimized. With the traditional finance systems banks and trade participants are required
to manage their various types of related documents individually. Thus, it is required that database
used by every participant reconciled with the other so that documentation errors can be
eliminated. There is great need that Blockchain technology and its operational aspects must be
analyzed and understood so that the organizations dealing in international export and import can
utilize its benefits and can make their transactions very quick and transparent (Scott, 2016).
The study of Blockchain technology will encourage its usage in trade finance by lowering
its complexity and unnecessary expenses involved in the document management or flow. The
financial growth in the global market depends upon robustness, availability and flexibility of the
financial mechanism. However, the complex and time process of scalability in trade finance
lowers the growth rate (Civelek and Özalp, 2018). The relevant research in the field of
application of Blockchain technology in international trade can resolve this issue and concerns.
Another significant reason for the execution and study of this type of study is that with the
advanced digital technology the data security and information exchange has been one of the
challenging parameter for the trader (Blossey, Eisenhardt and Hahn, 2019). This challenge can
be overcome by using a m ore advanced financial system which is better in terms of security,
transparency and processing time. The Blockchain technology provides an effective solution for
this purpose.
1.2.1 Practical problem formulation
Rapid globalization has outpaced the trade finance industry’s ability to standardize and digitize
its system of record-tracking. The exchange of commodities—each with its own unique
regulations, shipping specifications, and certification requirements—is currently managed across
different borders and jurisdictions using an ineffective, antiquated paper-based system of record
tracking that is often prone to significant issues. Among these issues are fraud, security
vulnerabilities, and inefficient payment methods that leave stakeholders waiting for payment for

an inordinate amount of time. It has been difficult to make significant technological
improvements to trade finance operations for various reasons, including the number of diverse
stakeholders located across the globe and the complexity and volume of business transactions.
Fractured processes cause billions of dollars’ worth of annual losses in income and missed
opportunities.
The security and implementation problems are mainly concerned with public blockchain. The
private or hybrid blockchain have less vulnerabilities to experience such issues. The public
blockchain systems tends to have higher transparency and decentralization which enhances the
vulnerability of cyberattacks. However as compare to private networks public systems also have
benefits that when number of users is very high then it allows decentralizing the data access.
Thus, it depends upon the user requirement that what benefits and applications can be used. For
example applications related to commodity trading needs extreme degree of privacy instead of
emphasizing on transparency. Thus, for commodity based transactions hybrid blockchains are
preferred. Thus, the major problem associated with the block chain use is to effective
implementation in commodity industry.
1.3 Knowledge gap and research contribution
Very limited studies have been conducted on the issue. Previous researchers have
highlighted the benefits of Blockchain technology for the international trade. However, there has
been a wide gap in its application in import and export. The existing researches only emphasise
on the benefits and operational aspect of the quoted technology. Further, to highlight the
significance and impact of end to end finance networks in the international trade this study will
determine the benefits and challenges in the application of exchanging trade related data within
finance network. It has been also observed that role of financial institutions is often neglected in
the probable challenges of international trade. This research study will also examines the role of
financial institutions and how these institutions are taking steps to shift from the traditional
financing methods to the Blockchain technique. This study will contribute in analysis of highly
automated infrastructure which can enable more advanced and efficient solutions related to
finance (Kshetri, 2017). Thus, it will help to develop a new level of interaction platform among

service providers, financial institutions, corporations, customers and business to business
networks.
1.4 Research Questions and Objectives:
 What are the characteristic problems and challenges related to traceability which are
faced by Trade Finance Market Participants?
 What are the underlying reasons that makes Trade Finance partners and others to put
their resources into blockchain?
 Which intermediaries will be redundant if blockchain proves to be successful in
commodity trading?
 Which transaction costs can be eliminated by implementing blockchain technology in
physical commodity trading between businesses?
 Does blockchain technology lead to the removal of intermediaries in supply chains and
thus to disintermediation, or does reintermediation occur?
 Which of the tasks of an intermediary in a supply chain are replaced by the blockchain or
become unnecessary redundant?
 What short- and long-term effect does disintermediation or reintermediation have on a
supply chain?
Thesis Structure
This research is structured into seven chapters. These are;
i. Chapter 1: This will introduce the research and give a background of the topic, which
includes the research questions, objectives and scope of the research.
ii. ii. Chapter 2: This will give an extensive literature review on the blockchain
technology, an overview of the trade finance process. It will also provide the context
and relevance of the study .
iii. iii. Chapter 3: This will explain the research methodology, detailing how the research
was conducted and what methods were used.

iv. iv. Chapter 4: This will present and analyses the data and findings in the research and
form the basis for discussion in the proceeding chapter.
v. v. Chapter 5: This will discuss and review the work done, interpret the results and
answer the research question.
vi. vi. Chapter 6: This will give the conclusions and summary of the research findings
and analysis and possible recommendations
8.1.1

9.1.1 Chapter 2: Theoretical foundation
2.1 Trans-national trade of goods life cycle
The trans-national product life cycle model describes the relation between trade, investment and
life cycle of the product. This model suggest that in international trade it is very common cyclic
stage in which the developed or high income countries such as US are the biggest consumer of
the products and thus exports products initially. However, gradually the export market is
diminished and these country becomes importer of the product (Crosby and et.al., 2016). At the
same time it has been also observed that some less developed countries undergoes shift from
importer to exporter.
(Source: Introduction To Global Marketing, 2019)
According to the product trade cycle model in the first stage export operation takes place
on the basis of surplus to phase and strength of domestic product. The product launch first occurs
in high income and developed countries due to their greater potential. Hence, the emanation of
new product initiates from high income country and then gradually with time export market is
developed. The entrepreneurs in the developed country realises that due to low manufacturing
cost new production must be initiated in the developing or the low income country. This process
encourages the second stage of the cycle.
In the second phase high income foreign company begins product supply in export
market. The competition of foreign producers displaces the export production source. At this
stage developed country can also make investments in foreign nation so that it can protect its
shares. With the enlargement of foreign producers, they become a major competitive source for
the third country market in which there is high competition with developed exporters
(Pilkington, 2016). In the final phase when foreign producers achieves necessary scalability and
experience they start export to the original producer at low production cost then the original cost.
As a result, the developed producers experiences competition in their own territory.
2.2 Blockchain in international trade context
According to Tripoli and Schmidhuber, (2018) recent advancements and use of
Blockchain technology has gained huge popularity due to its effectiveness in enabling proactive
supply chains. Its integration with the trade services allows accurate prediction of the consumer

behavior, development of cheap and fast routing needs as well as improved supply management
systems. When the traders are capable to easily protect and manage their huge volume of
information there has been numerous opportunities which allows them to have broad and quick
access to financing contacts.
Jessel and DiCaprio, (2018) stated that the international government which seeks good
negotiations in import and export activities can also find useful evidences from the Blockchain
technology (Hyvärinen, Risius & Friis, 2017). Blockchain uses a single digital platform it can be
easy for the international government to explore and detect the negotiating scenarios as well to
have better evaluation of the pros and cons of trade agreement. The increased transparency
through Blockchain also improves the international cooperation and the flow of import-export
goods.
10.1.1 2.2.1 Tracking ownership of cargo
As per Collet, (2018) the lack of real time tracking in international trade leads to the
huge losses and damages to the actual owners of products as well as customers. The key reason
for this problem is that with the conventional trade systems it is quite difficult to track the real
ownership and to distinguish it from the fake owners. Since the international trade network and
finance system is very huge and complex it is quite difficult to track the actual owners from the
past history as well. Due to this reason most of the traders still uses the paper-based
documentation system so that they own asset in order to deal with the future conflicts.
However, the damage and modification to paper-based documentation is very easy and
thus the problem remains issue from long term. Ducas and Wilner, (2017) elucidated that the
Blockchain can serve as an effective solution for this issue. The information stored in the
Blockchain portal cannot be modified or counterfeited as it consist of ownership tool. When the
data is modified the owner is informed regarding the changes made. With the digital storage the
owners are also able to store the information for the long term without being feared of data lost
or stealing. If traders stores the specification of their products on Blockchain then it will
impossible for the frauds makers to claim fake products as original. It will also enable customers
to themselves check the actual ownership related information of the products they are receiving
along with the original specification.

According to Chang, Iakovou and Shi, (2019) blockchain technology can be considered
as the efficient way for tracking the true ownership of any product. When customers and
financial institutions are satisfied with the originality of the product then it is very easy for the
service providers to manage their credits and supply chain. The technology also enable to track
the cargo and every shipment details so that they can track the products and customers can be
informed regarding exact delivery schedule. Along with the protection from fake ownership it
also enhances the quality of services provided to the consumers by enabling timely delivery of
services.
11.1.1 2.2.2 Digitized wallets and tokens
Blockchain wallet or the digital wallets provides assistance to users so that crypto-
currencies such as bitcoin or ether can be managed. These digital wallet can be accessed through
only valid user and passwords. The interface also shows the recent transaction so that the parties
engaged in the trade and finance can perform the financial transaction across the borders without
indulging in complex banking formalities of international trade (Yli-Huumo and et.al., 2016). On
one hand organizations can use cryptocurrency for making payments while virtual crypto tokens
in the blockchain represents utility or the asset. These tokens act as the transaction units in
blockchain and are easily transferable and tradable among participants.

12.1.1 2.2.3 Smart contracts
The international trade consist of tremendous paper work and complex banking
procedure. It results in delayed payment and conflicts as well. These trade issues can be resolved
by using blockchain based smart contracts. As per this contract the payments are automatically
released when contract execution is confirmed in a secure and transparent way. Smart contracts
are efficient, reliable, self enforcing and executing (Zheng and et.al., 2017). One of the
advantage of using smart contract in cross border transactions is that it reduces paper work and
banking cost nearly by 50% and transactions are updated quickly and automatically in
decentralised database. Arbitaration has been one of the crucial aspect in international conflicts
and this can also be resolved by smart contract quickly without waiting for months as in
traditional arbitration. For resolving disputes arbiter access the transaction details from database
instead of finances.
2.3 Blockchain platforms
The registered data in the block chain cannot be modified and thus it makes blockchain highly
suitable for the secure and decentralised processing. It helps international trade and finance
dealers to process the transaction and documentation secure and fast processed. There are various
blockchain platforms which are used for international export and import (Tian, 2016). The US
import and export uses blockchain to manage supply chain, multiparty financial transactions,
business decentralisation as well as for tracking tangible assets.
Blockchain platforms for international trade employs distributed ledger technology
(DLT). It allows transparent operations and transparency in the transaction ranging from tracking
of invoices to digitalisation of documents. The international finance trade can use various
blockchain platforms such as VOLTRON digitises credit letters or papers so that document
turnaround and frauds can be reduced. Another platform MARCO POLO is also based upon
DLT and aims at tracking payments and other financial transactions (Wright and De Filippi,
2015). MARCO POLO provides complete solution for the work capital finance and trade. In this
platform ERP embedded trade and API replaces the cost integration process so that connectivity
levels can be improved. It also facilitates fast transaction rates through process automation and
flow of goods and money.

The most widely and suitable blockchain for the cross border trade operations is
BATAVIA. Batavia is a finance platform for global trade which is developed on IBM blockchain
platform. In this blockchain smart contracts are used so that all participants and their transaction
activities can be tracked and monitored. These DLT based blockchain platforms augment the
international trade as these platforms encourages the entry in the international trade for the
organizations by eliminating the entry barriers and replacing antiquated intermediaries. However,
there are several challenges in using these platforms such as issues related to scalability,
regulation and security. BATAVIA is considered to be one of the most effective and good
solution in terms of blockchain technology. This platform overcome the major issues related to
documentation process involved in the trade finance. Though this solution is also provided by
MARCO POLO but is preferable widely for the automation process while BATVIA can also be
applied to simple import-export difficulties of trade finance.
2.4 Blockchain technologies
Blockchain technology uses blocks or the record lists which are interconnected via cryptography.
This technology can be known as open and distributed ledger system which is resistant to
modification and which records and maintains transaction among parties. One of the
characteristic of this technology is that it does not have any democratized system and thus each
and every participant has accountability to view or modify the information.
Blockchain technology does not have any operational cost and operates on three
principles called decentralisation, immutability and transparency (Ahram and et.al., 2017). The
centralised systems are easy target of cyber and networking threats thus it is more secure and
protected for the international trades. With the paper based system frauds and mismanagement of
information is very common in international trade. The blockchain provides the immutability
from this perspective. Since the data entered in the blockchain cannot be modified there is
transparency and immutability from the documentation errors.
The three technologies which helps in building and developing blockchain are private key
cryptography, peer to peer network interaction and blockchain protocols. In the cryptography key
digital identify references are sued for providing the secure digital keys. This technology assist
blockchain with strong ownership control and security. Peer to peer network technology best
suits the elemental characteristics of international finance and trade.

In cross border transactions networks are widely distributed and thus the network size is
very huge. Thus, blockchain technology remains committed with the authorisation and
authenticity of the network records (Treleaven, Brown and Yang, 2017). Another major
blockchain technology is based upon providing incentives so that the record security and
network transaction can be serviced. The blockchain protocol holds the power and capability to
decide and verify the validity and type of transaction. Thus, this aspect completely depends upon
the international trade participants that how transaction verification can be done and executed.
13.1.1 2.4.1 Hyperledger:
Though these platforms work effectively in the international trade but it cannot be used in
the markets which have fragmentation because for using these trade partners must use same type
of ledger (Lemieux, 2016). The double entry risk in the documents or the ledger statement often
creates dispute among the trade parties. Blockchain platforms are valuable because they provide
the golden records which does not have any possibilities of double entry of records.The peer to
peer technology providers the multiple copies of the ledger statement to all the participants so
that one can easily track them and manager. And even if one of the trade parties lost their copy of
agreement it can be easily access again. The rapid rise in the popularity and use of crypto-
currencies is also encouraging the use of blockchain in the mainstream of international finance.
14.1.1 2.4.1 Ethereum
It is an open source computing program which is based upon blockchain which features
the scripting functionality. The Ethereum platform generates the blockchain by token named
ether which can be exchanged and shared between various users or accounts for compensating
the mining nodes. The virtual machines are used for connection of international public nodes and
thus is helpful in supporting blockchain functions.
15.1.1 2.4.1 Corda R3
This open source blockchain application allows the direct transaction of individual and
organisations and uses smart contracts for providng strict privacy. The use of this technology
allows its users to maintain the records at lower transaction cost and streaming business cost. The
most distinguishing feature between Ethereum and Hyperledger is that Ethereum functions on
smart contract for the applications designed for the mass consumption while Hyperledger assist

in leveraging the blockchain technology for the business purpose. Corda R3 operates as private
blockchain and permissions is required to access the network content while Hyperledger operates
for public blockchain and there is no need for special permissions for accessing the network.
Similar to Corda R3 Ethereum also operates as private blockchain but the network access
permission is restricted to very few people with permissions.
2.5 Transnational trade theories
Trans-national theories of trade analyses and evaluate the international trade pattern and
its implications. The international trade which includes the post shipment payment terms needs
financing as the seller may require borrowing the working capital so that order can be completed.
Financing may also be required for purchasing the credit insurance so that counterparty defaults
can be protected. Thus, trade financing is integral part of the trade and includes aspects such as
insurance, guarantee and credit terms.
16.1.1 2.5.1 Trade finance theory
In the international trade finance the organisations follows three types of payment
methods namely letter of credit, pre-shipment payment and post-shipment payment (Finger and
et.al., 2018). According to trade finance theory the trade patterns differs by nature of countries.
For instance in US based countries the post shipment term is predominant method of payment. It
has been also observed that the US import-export activities are lower in the countries which have
letter of credit as the payment term. The type of product also plays significant role in the finance
theory. The export of the expensive and exclusive products often results in more firm terms for
the finance theory.
17.1.1 2.5.2 Transaction cost theory
The transaction cost theory can be used to demonstrate the understanding that how
blockchain technique can influence the financial transactions. The theory is associated with the
organizational theory, contract law and economic perspective. There are several transactional
activities which does not have contribution towards the production of goods and services. The
transactional cost theory minimises these unnecessary cost and emphasis on monitoring,
bargaining, enforcement and searching of transaction related activities (Cachin, 2016). The two

principle primitive of transaction cost theory are rationality and opportunism. Each organization
involved in the international trade aims to maximise the trade transactions.
The bounded rationality refers to the individual's limitation of processing, receiving and
retrieving information. On the other hand opportunism is exemplified by breaching agreements,
stealing and dodging duties. According to this theory attributes such as frequency of transaction
between trading parties, relationship uncertainties among trade partners and asset specificty
influences the transactional cost.
18.1.1
19.1.1

20.1.1 Chapter-3 Literature review
3.1 Blockchain Overview
According to Iansiti and Lakhani, (2017), Blockchain can be defined as growing list of
records which are linked together using cryptography. All the list of records are called blocks
which contain a cryptography hash of previous block time-stamp and transaction data. It is a way
that can record each and every transaction between two parities efficiently in a quite permanent
and verifiable. In other words it is a kind of crypto-currency which uses a medium of exchange
for a secure financial data. These currencies uses decentralized control to oppose centralized
digital currency and central banking system. Blockchain is resistant to any kind of modification
in data. Blockchain is one of the best invention done by Satoshi Nakamoto (History of
Blockchain, 2019). It allows all kind of digital information to be distributed but not copied. Slow
and steadily Blockchain technology has become a backbone of the new type of internet. As
initially it was designed for bitcoins and digital currency but today technology community has
found a new way of using this technology.
As per the view of Swan, (2015), in simple words, blockchain can be defined as a type of
incorruptible digital ledger of economic transactions that can be used to record all financial
transactions and well as everything else of value virtually. One of the most special and important
thing about blockchain is that it has no central authority. Since it is a ledger which is completely
immutable as blockchain ledger has the ability to remain a permanent, indelible, and unalterable
history of transactions. So all the information available in it is open for everyone and anyone can
see it i.e. it is transparent for everyone and which is why everyone involved in this transaction is
accountable for their actions. As it has already been discussed that blockchain is completely safe
and fully autonomous way of passing information. It is done in a simple manner i.e. one party
initiates a transaction by creating a block. That block is verified by millions of computers
distributed around the internet.
Further as explained by Cachin, (2016), Database of blockchain is not stored at a single
place in-fact it is stored at multiple location so that all the stored recorded can become easily
verifiable and remain public. This also help in saving information from hackers and from
becoming corrupt. Due to non availability of central system it becomes difficult for hackers to
hack the system. This complete blockchain technology is dependent upon three main pillars
which are: Immutability, transparency and Decentralization. Due to no core authority, no central

system data remains safe and for users all the data data available is completely authentic and it is
verified by millions of versifiers this is one of the main advantage of this technology which
makes it more advance, efficient and reliable. Its immutability makes the data available safe as it
cannot be changed or tempered one it enters into the system. Blockchain has changed the way of
trading and has added another option on transferring data as well as has added a mode of
payment option.
3.2 Modes and method of payment in international trading finance
As per the view of Niepmann and Schmidt-Eisenlohr, (2017), International trade
financing is one of the most essential thing to get funds to carry out international trade
operations. This international trade financing uses various methods of transaction and of finance
that are mainly used in investment operations included in international trade. Niepmann and
Schmidt-Eisenlohr, (2017), further says that there are five major processes that can be used for
transaction in international trade which are: prepayment, letter of credit, Draft, consignment and
open account. These are one of the most frequently used processes in transaction especially in
international trade. These processes of traction are: First is Prepayment is a process in which
installment payment is completed before the due date. In this prepayment complete balance or
upcoming payments can be paid in advance. Borrower is obligated to pay complete payment
within the due time. Letter of credit is provided by the bank which says that complete due
amount will be paid within the due time period. If in case the borrower or buyer fails to pay rest
of the remaining portion of payment then in such case bank covers the rest of the remaining
portion of payment.
Further explained by Melvin and Norrbin, (2017), Draft payment process is done in two
ways first is sight draft and second is time draft. Sight draft can be explained as a kind of
exchange bill in which exporter owns transported goods title until and unless the buyer pays and
acknowledges them. It is mostly done in case when trading is done through air or through ships.
It is one of the best method of payment in case of international trade. Time draft is a kind of
foreign check guarantee that is done by the bank. It is a kind of short term credit that is used for
financial goods transactions especially in international trade. Consignment is a type of
arrangement in which goods are left in the possession of another party so that they can sell those
goods. It is done especially with the parties that sell and receive large amount of goods. This
consignment can be done for variety of things or goods. Last is open account in which payment

of various trade transactions are done. In this goods are supplied by supplier to the buyer. After
receiving and checking the consignment buyer credits supplier's account in their own books as
per the invoice amount.
As explained by Connolly and Swoboda, (2018), All the processes can be competed by
any means or mode of payment method. These payments can be done in terms of bonds, in cash
or through online modes. It can be done either by paying all the payment in advance. But this
advance payment is mostly done in case of low value or low order import and export trading.
This option reduces the risk of delay payment or no payment. However, this mode of payment
sometimes create problem in business in terms of international trade finance. So, it becomes
important for business owners to understand all kinds of risk associated with it. Another is
installment payments where either in cash or through digital medium payments are done in short
installments. Next is post order payment in this complete payment is done are the order is
received by the buyer. Most of the international trade finance companies prefer digital mode of
payment as it is quite secure as compared to other modes. In this digital mode also most of the
companies are switching to blockchain due to various benefits.
Difference between blockchain and bitcoin
Bitcoin is a digital currency which is also known as crypto-currency. It is mainly used for
speeding up cross border transactions in order to reduce government control over transactions. it
is also used to simplify complete transaction process so that there is no need of third party
intermediaries to interfere in transaction process. Whereas, blockchain is a type of ledger that
helps in recording all kinds of transaction records which will further help in peer to peer
transaction.
3.3 Blockchain and trade finance
In the view of Guo and Liang, (2016), Trade finance can be defined as financial
transactions that are done both internationally and domestically. It is related to trade receivable
finance and global trade. Such trade finance includes factoring, lending, issuing credit letter,
insurance, factoring and export credit. Almost above 90 percent of worlds trade depends upon
international trade finance. In this almost anytime goods or services can be sold or bought and in
this somewhere trade finance is involved. But there is only one thing which is quite difficult with
trade finance which is that it involved lots and lots of paper work. Most of the banks today are
trying to reduce the paper work and increase the efficiency of the trade finance by making of the

data flow digital. For this most of the international trade financiers are trying to adopt blockchain
as their one of the mode of transfer of data as well as a mode of financial transaction. Corporate
continuously experiment with their process of trade finance in order to simply their trading
process across borders. Blockchain today has successfully streamlined trade finance process.
Today role of blockchain is much more especially in international trade finance. Many corporate
companies are focusing on adopting blockchain for their international trade finance as it is much
more efficient, secure technology that can be used.
According to Korpela, Hallikas and Dahlberg, (2017), Blockchain helps in distributing
digital ledger of transaction using cryptography. Blockchain increases the security and reduces
the chances of fraud in international trade finance as all the participants within the network can
securely amend the ledger without needing any kind of security. This technology also increases
the efficiency of trade finance as all the participants within the network can quickly update and
view all the recent transactions done. This also reduces the need of multiple copies of paper
documents which consist of all the necessary and required information. All the people involved
within the trade finance have their own database which consist of all the necessary documents as
well as all the required and necessary transaction details. All the documents are reconciled with
each other so that if any one database document gets corrupted then it can easily be corrected
and further corrective measures can be taken in order to determine which of the following
document is correct.
As explained by Dowling and et.al, (2018), this technology also helps in employing all
the documents and required necessary information in one digital document as it can be updated
pretty quickly, can be viewed by all the persons available on the network in the same time. One
of the main role of blockchain is transaction and it also works as an advantage as it speeds up the
transaction settlement time as well as increases the transparency between the parties which
increases trust within the parties for international trade finance. According to Cong and He,
(2019), There are various companies that has already started using and deploying their programs
to start using blockchain in their trade finance as well as within their receivable finance. This
blockchain technology helps them to make their transactions more secure, more efficient etc. and
not only this it also helps them to keep a close eye on their system. It also helps them to improve
their services which is beneficial not only for them but for their clients as well. Due to such
varied applications and benefits blockchain plays a vital role in today's trade finance especially

which is done internationally. In other words it can be said that This technology has provided
with various benefits to trade finance companies that has been discussed above. It has become
one of the main dominant type of technology that is dominating many bankers and business
world today.
Further as explained by Jessel and DiCaprio, (2018), All the inefficiencies of
international trade finance has been solved with Blockchain technology. Due to this digital
transformation many companies are introducing new projects that uses this digital transformation
technology. This technology has advanced international trade finance in many ways that has
been discussed above. There are various other modes of payment that are being used for trade
finance especially at international level. These mode of payments are used according to the
financial supply chain of the company which they find quite feasible and secure. Today mode of
payment s one one of the main process on which brainstorming is done because most of the
frauds happens in terms of finance only. So, many companies have today updated their historic
operation process to digitized operational process to reduce the fraud and increase the efficiency
of the process. All the above presented information is the empirical evidence that concerns block
chain role and application in international trade financing all this information is from united
states import and export. 3.4 Trade Finance Products
The Global Trade Review (2018) explains the five popular trade finance products, which are
either short-term finance products maturing within a year, or medium to long-term trade finance
products that is from five to twenty years. These are:
21.1.1 Letter of Credit (LC)
An LC is a guarantee issued by a bank on behalf of its importing client assuring the exporter that
the correct payment would be made within the specified time frame if the exporter complies with
certain terms and conditions and the right goods are sent (Global Trade Review, 2018). Thus, in
the event of a default in payment from the importer, the bank would be held liable for the
payment.
With the LC, the bank steps in to avert the payment risk in the trade transaction. The exporter is
assured of receiving payment and the importer is assured of receiving the correct goods (Hwang
and Im, 2017).
This is the oldest and most common form of short-term trade finance. 28

Figure xx: A Letter of Credit Transaction
Source: (Global Trade Review, 2018)
22.1.1 Supply Chain Finance (SCF)
SCF is a short-term financing process from the bank to the supplier and buyer, that optimizes the
working capital (funds for general day-to-day expenses for the company) for both parties, by
lowering financing costs and improve business efficiency (Global Trade Review, 2018).
With SCF, the supplier sells their invoices to the bank at a discount, thus enabling them to have
faster access to funds to use as working capital, whilst the buyer has gotten more time to pay.
In transactions involving a small supplier and a big buyer with high ratings, the supplier can get
their invoices paid at a discount from the bank rather than wait for the due date of payment from
the buyer, granting them quick access to funds rather than having it tied up in unpaid invoices.
This process is a supplier finance program.
In a reverse process, the bank gives credit facilities to the buyer to pay the supplier immediately
and repay the bank on the required due date of the transaction. This process is a buyer finance
program. 29
Unlike the LC where the banks are dealing with just one trade transaction, with SCF, they would
be supporting a continuous flow of goods. This has become increasingly popular with
globalization and the complex process involved with supply chain management (Hwang and Im,
2017)
23.1.1 Structured Trade and Commodity Finance
This is a long-term financing of cross-border commodity flows involving high-value supply
chains. This is done in several ways: (Global Trade Review, 2018)
1. Pre-export finance (PXF): Here, the bank uses the export contracts as collateral when
providing the finance for the trade.
2. Borrowing base facilities: Here, the bank provides credit facilities to the business to be used as
working capital. The collateral for this credit is the current assets of the company.

3. Revolving credit facilities (RCF): The bank provides flexible financing option, usually to a big
commodity trading house, who can draw from and pay back as needed, thus benefiting from
extra flexibility.
4. Warehouse financing: Here, the bank accepts the commodities in the warehouse as collateral
for financing the producer of the commodities.
24.1.1 Overview of Export and Agency Finance (ECA)
ECAs are public government-owned agencies and entities that provide government-backed
loans, guarantees and insurance for international export operations to domestic companies,
particularly when the trade involves developing countries and emerging markets (Global Trade
Review, 2018)
Here, political and country risks are averted in order to promote export in the country and also
providing credit facilities for the export at the pre-shipment or post-shipment stages. 30
Figure xx: An Export Finance Process
Source: (Global Trade Review, 2018)
25.1.1 Trade Credit and Political Risk Insurance
Trade credit insurance is given to protect against non-payment due to a default, insolvency or
bankruptcy.
Political risk insurance is given to protect against non-payment due to exposure to political and
country risks which includes, default in payment due to actions of the foreign government, acts
of terrorism, war and other political violence (Global Trade Review, 2018).
Unlike the other trade finance products where the bank bears the risks in the trade transaction,
with trade credit and political insurance, the risks are borne by private insurance companies.
These private insurance companies offer specialist insurance protection against credit and wider
political risks to the banks and other financial institutions, exporters and importers, commodity
traders and foreign investors (Global Trade Review, 2018).

3.5 Trade finance scope (Problems that can be addressed through Block Chain)
Gelsomino and et.al., (2016) Explains that, Trade fiance scope which is related to debt,
payment, liquidity and other financial instrument are used in international trading. There are
many problems that are related to payment or finance related to international trade. All such
problems are addressed with blockchasin in an effective manner. Blockchain is also known as
distributed ledger technology as well. It has helped in solving various kinds of problems and had
solved various issues and problems such as debt, payment, liquidity and various other problems
in an easy, secure and better manner. By solving these problems it can help organization to gain
an edge over rivals. This technology has not only reduced transaction cost but it has increased its
overall security as well. It has helped in solving transaction problems as well by maintaining a
ledger. This ledger helps in tracking all transactions done between two peers, debts due on a peer
and many others. It also helps in creating smart contracts which helps in solving delayed
payment problems as well as in this payment to the party is automatically released when the
problem get over. One of the main problems faced by traders in international trade is based on
liquidity as there is a high risk related to uncertainty of liquidity. This is because many times it
impacts the overall market price as well. Blockchain can solve this liquidity problem with the
help of bitcoins. Exchange and circulation of bitcoins is much easier as compared to exchange of
cash. This way blockchain has made international trading easy, secure, efficient by resolving all
the issues related to it and has increase the overall scope of trade finance.

26.1.1 Chapter 4 Research Methodology, Design and methods
4.1 Research design
Research design can be defined as a set of methods that can be used in collecting and
analysing as well as answer research questions or research problem. In other words research
design can be said as the way to ensure that whether the data that has been collected will help in
solving or answering the research problem effectively and efficiently (Creswell and Creswell,
2017). It helps in identifying the type of study that will be carried out so that all the research
objective can be completed and all kind of research questions can be answered. It mostly
includes research strategies that are used in data collections and analysis. It can mainly be
divided into two types which are: exploratory research design and Conclusive research design.
Exploratory research design is used to explore all the research questions. It never answers
or offers conclusive and final solution to the existing problem. It is mostly used when a research
problem is not defined clearly but is needed to be studied properly or in other words it is used in
informal or non-quantitative data analysis i.e. in qualitative data analysis. Data needed for this
research design is completely vague which can be collected from any kind of ill defined data
sources. In this design data collection form is rough and open ended and mostly the relevant
sample used for the research is small. In this mostly primary data is used for qualitative analysis
with non-representative sample (Merriam and Tisdell, 2015). This research design has its own
advantage like changes in this are adaptable and flexible.
Conclusive research design is mostly used to find useful research conclusion or for
decision making. In this the research objectives and requirements of the research design are
needed to be defined clearly so that it can be used specifically. This type of research design
always provides a way to quantify and verify all the findings of exploratory research. Purpose of
this type of research always specific according to the course of action, data needed for this
should be clear from well defined data source, data collection form for this usually highly
structured with relatively large sample size, data collection method in this rigid and a well laid
out procedure is required. This type of research design is normally used in formal or quantitative
research type. It is of various other types such as case study, retrospective study, cross-sectional
study, longitudinal study and case series study (Quinlan and et.al., 2019). The main objective of
this research design is to test relationships or hypothesis with clearly defined information. All the
findings used in this research is mostly used for decision making.

For this dissertation the research design that will be used is exploratory as it is a
qualitative dissertation and all the information that is required is loosely defined so to get an
insight and understanding of research topic. this Exploratory research design will be used as it is
an qualitative research paper where data analysis that will be done will be non-quantitative. It
will also help in generating an insight about the situation.
4.2 Research Approach
Research approach can be defined as a plan or procedure which consist of many broad
assumption steps for data collection methods, interpretation and analysis. It is mainly of two
types which are: approach for data analysis and second is an approach for data collection. It
mainly involves many decisions which are taken to present all the data collected and is needed to
be analyzed. Research approach is mainly categorized into three which are: first is qualitative,
second is quantitative and third is Mixed. For qualitative approach inductive research approach is
used. For quantitative deductive research approach is used and for mixed Abductive research
approach is used. Deductive research approach is mainly used when a hypothesis is needed to be
developed which is completely based on existing theories (Marshall, Coleman and Reason,
2017). Basic meaning of deductive is reasoning to general from particular and the logic behind
this is that if the premises are true then conclusion is also true. Data collection is used to test the
hypothesis that is related to the existing theory where theory verification is done. There are
various advantages of deductive approach such as: it helps in avoiding risks, Complete research
or study can be completed within a short duration of time, it also helps in measuring all the
concepts quantitatively.
Inductive approach it also known as inductive reasoning. In this approach as an
observation result various theories and observations are proposed to the end of research process.
In this approach a pattern is observed and evolved for the theories to be developed through a
series of pattern. This approach also givers the researcher a liberty to alter the direction of the
research even after the commencing of the research process. It is mostly used to generate
untested conclusions by generalizing from specific to general. In this data collection is basically
used to explore patterns, phenomena, patterns and for creating conceptual framework. In this
approach types of questions used are either process oriented or are open ended. It mostly follows
bottom up approach and simply based on observation, create a pattern and develop a theory.
Abductive approach also known as abductive reasoning (Teherani and et.al., 2015). This

approach is mostly used to address all the weaknesses that are associated with inductive and
deductive approach. This approach is used when incomplete observations are associated with the
research and based on those incomplete observations predictions are made that might be true.
Data collection in this is used to identify theories, phenomena, patterns and based on these
phenomena framework is located. These frameworks are tested through subsequent data
collection. So it can be said that in this existing theories are modified.
For this dissertation inductive approach will be used as it is one of the best suitable
approach for this qualitative dissertation as in this based on observation results a pattern will
observed.
4.3 Research philosophy
Research philosophy is a wide belief where data is gathered about a phenomena in a way
such that it can be analyzed and used accurately. It is important to specify research philosophy in
the research study as it deals with the knowledge development, source and nature of the data. In
this the researcher will collect both primary and secondary data so that they can engage in the
analysis so that all the research questions can be answered based on creation of new knowledge.
There are four main types of research philosophies within the scope of dissertation which are:
pragmatism, positivism, realism and interpretivism (Padilla-Díaz, 2015). Choice of all the
philosophies is done based on the data collection method. Pragmatism is used when multiple or
mixed method designs are chosen in both qualitative and quantitative data collection. Positivism
is used when large data sample is used which are highly structured which are needed to be
measured. It is used used mostly used in case of quantitative but sometimes is used in qualitative
as well. Realism is used data collection method chosen fits the subject matter and can be used
with both qualitative and quantitative data collection method. Lastly, interpretivism is used with
small sample data where in depth investigation of qualitative data is to be done.
Pragmatism philosophy can be used with both inductive and deductive research approach
and with qualitative and quantitative research strategy. This philosophy says that there is no
single way of interpreting data to get an entire picture but rather there are multiple ways to
interpret data for multiple realities. As per this philosophy research questions are one of the most
important determinant of research philosophy. Positivism philosophy says that stable reality can
be observed and described from a single point of view. In this all the knowledge gained through
data measurements, observations are trustworthy. In this philosophy researcher's is limited to the

interpretation and collection of data in an objective way (Saunders and et.al., 2015). This this the
main aim of the researcher is to predict and explain the aim of the dissertation. Realism research
philosophy is basically based on the idea of independent reality from the human mind. In this
scientific approach is assumed and knowledge is developed. It is mainly divided into two parts
which are direct and critical realism. Direct realism says that data got by the researcher is based
on the data that is observed by the researcher. Critical realism says that the data observed and
depicted does not portray real aim. In this different range of data collection methods can be
chosen which fits the subject matter.
Interpretivism research philosophy uses questionnaires, interviews and observations. This
philosophy uses both primary and secondary data to understand the aim and predict weakness.
Based on the type of research in this dissertation Interpretivism research philosophy will be used
as it is a qualitative research where inductive research approach will be used.
4.4 Research Sampling
Research sampling is a process to select members of a population so that they can
participate in the research study. It is one of the most important part of a research as it is not
possible to analyze and interpret the data of too large population directly as it might be time
consuming, costly and sometimes might hinder the overall result (Robertson and Sibley, 2018).
Sampling helps the researcher to select the sample from a large population so that it becomes
much easier to reach to a conclusion. Sampling of the data helps in various ways such as: any
size and type of research becomes manageable, helps in saving the overall cost and time of the
research, helps in obtaining more accurate research findings, information obtained can be
processed in a more accurate and efficient way and not only this it also helps in accelerating the
speed of primary data collection. Sampling is done in following steps which are: first the target
population is defined, then sample frame is chosen, then sample size based on the research
problem is determined, then based on this sample method is selected and lastly chosen sample
method is applied into the practice. Sampling methods are mainly divided into two categories
which are: probability and non probability sampling.
In probability sampling all the members of the population has the chance of participating
in the research study i.e. all the members has a non zero chance of participating in the study. It is
further divided into four types which are: Simple random, systematic random, stratified random
and cluster random sampling. Probability sampling has various advantages such as: research

findings has high reliability, accuracy is increased and error chances are decreased however it is
more time consuming (Palinkas and et.al., 2015). Non probability sampling group member are
chosen in a non-random manner therefore all the members of the sample does not get a chance to
participate in the study. It is further of four types which are: quota, purposive, volunteer and
haphazard sampling. It is used as sometimes it is not possible to draw a conclusion based on
random probability based on the cost and time consecrations. There are various advantages of
this non probability sampling which are: it becomes possible for the researcher to reflect all the
descriptive comments about the sample, it is extremely cost and time effective as compared to
probability sampling however in this it becomes difficult to represent the entire population.
For this dissertation probability sampling will be used and within the probability
sampling simple random method will be used as the group members of the sample will be
selected in a random manner. Sample size of 30 individual's working in the international trade
finance sector is considered. All the 30 participants will be participating in the dissertation.
4.5 Data Collection
Data collection can be defined as the process in which data is collected from different
sources so that required answers for the research problem can be identified in order to evaluate
the outcome of the research (Klausen, 2017). Data collection is divided into two main categories
which are: primary data collection methods and secondary data collection methods. Secondary
data can be defined as the type of data that is collected from magazines, books, journals, online
portals etc. Primary data is a data that is collected by the researcher from all the fist hand
sources. Primary data collection methods are divided into two main groups which are: qualitative
and quantitative data collection method. Quantitative data collection methods can be described as
the methods that are used to measure the level of occurrence of the information based on the
calculations and numbers. In this method how often and how many are mostly answered and
asked by the researcher in order to obtain the data or information. In simple words in this
mathematical calculations in different formats are done. In this methods all the open ended,
questions or questionnaires are formed and are analyzed with the helps of mean, mode, median
or any other form of method. So it can be said that data obtained in this is numerical, sample size
is quite large and all the obtained data is analyzed based on the null or rejection pattern.
Qualitative data collection methods are used to gain the insight, understanding and
motivation behind the data to be collected. It is used to collect all the non quantitative or non-

numerical data (Levine and et.al., 2018). Qualitative research is mainly associated with all the
elements that are non-quantifiable. In this data collected is mostly textual and is of small sample
size. It is used to understand the depth of the study with the help of various methods such as:
questionnaires, interviews, observations, case studies, focus groups etc. there are various
advantages of qualitative data collection methods which are: it helps in collecting detailed
information, is comprehensive in nature, easy to be conducted, while there are many
disadvantages of this method as well such as it has less reliability, poor generalization, rare
integrity etc. For this dissertation data collection method which is chosen is primary data
collection method. In primary qualitative data collection method will be chosen. Within
qualitative data collection method survey method such a questionnaire will be chosen. In
questionnaire all the questions were related to the Blockchain's role and application. This
questionnaire was distributed to all the 30 individuals working in the international trade finance
sector.
4.6 Data Analysis
Data analysis can be defined as the procedure in which data is inspected, transformed,
cleaned etc. in order to discover information regarding the research and reach the conclusion so
that decision making can be supported data analysis is done. In this the manner in which data is
collected, used etc. is analyzed (Silverman, 2018). It plays a major role in decision making,
completion of research and reach to the conclusion of a research. Data analysis is of two types
which are: qualitative and quantitative data analysis methods. In case of absence of primary data
data analysis can be done in the form of discussing common patterns, controversies etc. within
the secondary data of the research. Qualitative data analysis is mostly used to analyze data such
as interviews, text documents, audio, notes, videos, recordings etc. this qualitative data analysis
is divided into five main categories which are further sub divided into different analysis. Five
categories are: Content analysis, narrative analysis, disclosure analysis, frame work analysis and
grounded theory. Content analysis is a process in which behavioral or verbal data is categorized
to tabulate, classify, summarized data. Narrative analysis is a method in which reformation of
stories which are mainly presented by participants of the study. In other words narrative data
analysis can be defined as the revision of primary qualitative data that is collected by the
researcher for the study. In disclosure data analysis, analysis of naturally occurring written or
oral talks or texts are done. Framework analysis is type of data analysis method in which several

stages of data analysis is done such as: identification of thematic framework, charting, coding,
mapping, interpretation etc. Grounded theory in analysis of a single case to formulation of a
theory is done (Ott and Longnecker, 2015). After this rest of the cases are also analyzed to
check whether they contribute in the theory.
In quantitative data analysis raw numbers or figures are analyzed into meaningful data
with the help of various applications of critical thinking. In this calculation of variable difference
and variable frequencies. It can be done through various software's in different manner such as
Excel spreadsheet, Microsoft Access and SPSS. There are various advantages of this quantitative
analysis such as: it has flexible information retrieval, analysis of data is done in an unbiased
manner. There are various methods of doing quantitative data analysis such as mean, mode
median, correlation quantitative data analysis method. All the methods are used according to the
requirement of the case study.
For this dissertation qualitative data analysis will be done of primary data that will be
collected from survey questionnaire. Within qualitative thematic data analysis will be done. So it
can be said that for this dissertation content analysis will be done
4.7 Ethical Considerations
Ethical consecrations in a research are important and critical to be considered. It provides
moral behavior description that is needed to be included in the case study (Bauer and et.al.,
2017). It makes a dissertation acceptable and reliable. It is important for the researcher to
incorporate such ethics in the research study. Mainly such ethics are associated with collection of
primary data like when safety and privacy of the data obtained by the participants of the study.
Other than this there are various other factors such as plagiarism, referencing etc. it is important
for the researcher not to copy other researchers data and use it as their own as it will considered
as plagiarism. If another researcher's data or information is used then it is required to be
referenced. All the secondary data collected should be references, validated and authenticated as
well i.e. it should not be directly copied but should be validated whether it is correct or not. It is
completely wrong to use someone else data or information as one's own information. It is also
ethically wrong to use wrong information and mislead all the readers by wrong information,
therefore it should be avoided. Throughout the dissertation data protection act was considered
and was not broken at all i.e. none of the the other researchers study data was used on the
researchers name. In other words it can be said all the guidelines related to the usage, searching

of data were followed and kept in mind throughout the completion of dissertation. All the
policies related to data collection were followed and were not breached.
Dissertation might get failed if this part is missing or is not considered. There are various
principles, ethics that are needed to be considered while doing the research paper (Wright and
et.al., 2019). All the participants of the research have voluntarily participated in the research and
had each and every right to remove their names from the participation in the research. They were
not harmed in any way for the completion of the research. Dignity of all the research participants
was considered and was prioritized. Offensive formation of questions, interviews were avoided
as well as unacceptable language was also avoided. Confidentiality and privacy of all the
participants was also considered. Permission of the participants of the research were taken as a
priority. Throughout the dissertation it was noted that no vague and false information was used
or analyzed for the completion of the research project. Throughout the research dissertation
transparency and honesty within data collection, communication in relation to the dissertation
was adhered. All the sources used for data collection, funding for the research and any kind of
possible conflicts were declared i.e. no information regarding the same were hidden. Lastly
usage of offensive language, discrimination towards any participant or inappropriate language
for questionnaires was avoided in any way it was possible.
4.8 Research Limitations
There were various limitations that were faced by the researcher during the completion of
the dissertation. Various research processes and methods were used to reduce the research
limitations. Such limitations were directly related to the research problem in many ways.
In this research all the points related to the aim were tried to be covered but however there were
many points that were not included in the completion of this dissertation (Greener, 2018). There
were many research limitations that were faced by the researcher during the completion of the
dissertation, such as:
 First limitation that was faced by the researcher was formation of aims and objectives of
the dissertation. It was a bit difficult to narrow down the level of focus of the study so
that the study can be increased.
 Another limitation faced by the researcher was in implementation of data collection
methods. Data collection was one of the major limitation that was faced by the researcher

as they needed to consider the validity and authenticity of the data that was to be
collected with the help of various methods of data collection.
 Sample size was also a limitation faced by the researcher as if large sample was taken
then it would have become difficult for the researcher to analyze the data and if small
sample was taken then too the researcher would have faced difficulties. It was extremely
important for the researcher to consider accurate size of the sample in order to obtain
accurate results of the dissertation.
 Lack of previous study and experience was another limitation that was faced by the
researcher. As the researcher did not have any previous experience of doing dissertation
and lacked previous study related to the topic. Due to this lack of experience and previous
study it was difficult to identify the scope of study that had been done in the research
field. This previous study helps in building the base of the dissertation and also helps in
achieving the research objectives in an easier manner (Finger and et.al., 2018).
 Due to this lack of experience researcher faced lack in confidence in completing the
dissertation. This lack of confidence affects the amount of information that is needed to
be revealed, used and analyzed during the dissertation.
 Another limitation that was faced by the researcher was lack of code of conduct due to
which inter departmental and inter university revelries were created and were faced by
the researcher.
 One of the main limitation that was faced by the researcher was time constraint. Time
available for the study was one of the main issue. It was quite difficult for the researcher
to complete the study before deadline.
 Another limitation was lack of access to information. It was difficult to gather
information from all the 30 respondents as first of all the researcher was required to
describe the reason to conduct the interview based on this reason researcher was provided
access to the information.

27.1.1 Chapter 5: Research Analysis and Discussion of result
Analysis and interpretation is one of the most important part of research in which data
gathered for the research is analyzed, interpreted and discussed in order to obtain final result.
For this dissertation an interview was conducted in which 20 questions related to blockchain in
trade finance sector were asked to 30 individual's who were working in the international trade
finance sector.
5.1 Efficiency
In this research analysis part impact of blockchain on trade financial transaction
efficiency will be discussed and all the questions asked within this section will help in analyzing
efficiency of blockchain in this sector.
Theme 1: Transaction cost in Blockchain
Question 1: Is any kind of transaction cost in
Blockchain?
Options Respondents
Yes 12
No 18
Interpretation: From the above graph it has been interpreted that 30 out of 12 respondents says
that there is transaction cost in blockchain while a transaction is done however other 18
respondent says that there is no transaction cost in Blockchain. This is because in blockchain
transactions are done using already existing tokens. Plus whenever transactions are done block
producers receive rewards. Instead of transaction fee tokens are distributed and before
confirming any transaction, first of all those transactions are validated, reviewed and then
confirmed.
Theme 2: Central authority that controls Blockchain transactions
Question 2: Is there any kind of central
authority that controls Blockchain transactions?
Options Respondents

Yes 10
No 20
Interpretation: From the above graph it has been interpreted that 30 out of 10 respondent says
that there is a central authority that controls blockchain transactions whereas other 20
respondents says that there is no central authority that controls transactions within blockchain. So
it can be analyzed from the above responses that there is no central authority in blockchain and
this is because there is not single database in blockchain in-fact the database is distributed all
over the network each participant maintains and controls their own entries into database. All the
calculations, maintenance, updation within new entries are done into own database. So due to
this decentralized control requirement of a central authority is not there.
Theme 3: Impact of Blockchain on trade financial transaction
Question 3: Is impact of Blockchain on trade
financial transaction good and effective or not?
Options Respondents
Yes 17
No 13
Interpretation: From the above graph it has been interpreted that 30 out of 17 respondent says
that blockchain has an effective and good impact on trade financial transaction however other 13
respondents do not agree with this and says that overall effect of blockchain is not on trade
financial transaction. So from the above responses it can be analyzed that impact of blockchain
on financial transactions of trade is good. This is because it provides a safe, secure and efficient
way of doing transactions in trade. This also reduces the possibility of fraud, inefficient
transactions etc. for trade finance. Due to these reasons it has been proven efficient and effective
for trade financial transactions.
Theme 4: Safe check and automatic execution of transaction

Question 4: Does Blockchain allows safe check
and automatic execution of transaction or not?
Options Respondents
Yes 20
No 10
Interpretation: From the above graph it has been interpreted that 30 out of 20 respondent says
that blockchain does allow automatic and safe check execution of transaction whereas other 10
respondent does not agree with the same and says that there is no safe check of transactions.
From this response it is clear that as per the respondents blockchain provides automatic and safe
check execution of transaction. From the above discussion it is clear that block chain provides
automatic and safe transaction because of various reasons and one of them is its decentralized
database which provides security and privacy to the user. It also validates the transaction before
confirming it which provides a safe check of execution of transaction. After validation
transaction is confirmed automatically due to which transaction is automated.
Theme 5: Opportunity offered by Blockchain to finance trade
Question 5: Is the opportunity offered by
Blockchain to finance trade is cheap and less
risky?
Options Respondents
Yes 25
No 5
Interpretation: From the above graph it has been interpreted that 30 out of 25 respondent agree
and says that opportunities offered by Blockchain to finance trade is less risky as well as cheap
while other 5 respondents do not believe that these opportunities offered by blockchain to
finance trade is chap and less risky. This response confirms that the opportunity provided by
blockchain cheap, safe and less risky and this is due to its regulations, compliance that ensures
safe transaction and a safe and easy mode through which transfer of money can be done.

From the above discussion it has been analyzed that is quite efficient technology and
helps in increasing the efficiency of trade financial transaction in various ways as there is no
transnational cost in blockchain, there is no central authority that controls all the transactions
done in blockchain as blockchain have a decentralized database. Not only this blockchain also
allows automatic execution and safe check of transactions and because of such reasons
opportunities offered by it are less risky and are continuously increasing. So it can be analyzed
that blockchain is quite efficient in terms of efficiency in trade financial transaction.
5.2 Security, product integrity and privacy
In this research analysis part Security, product integrity and privacy will be discussed and
all the questions asked within this section will help in analyzing impact of blockchain on
Security, product integrity and privacy.
Theme 6: Blockchain an effective and safe way of exchanging documents
Question 6: Is blockchain an effective and safe
way of exchanging documents?
Options Respondents
Yes 21
No 9
Interpretation: From the above graph it has been interpreted that 30 out of 21 respondents says
that blockchain is a safe and effective way of exchanging documents whereas other 9 respondent
does not agree with this medium of exchanging any information or document. This response
from the respondents clears that it is an safe, effective and efficient way of exchanging
information or any kind of documents. This is because each user or participants maintains their
own database which provides privacy and safety to all the data, information or to the documents
that are exchanged from one user to another. It also increases the effectiveness and efficiency of
the document exchange.
Theme 7: Blockchain meet its users expectations in terms of quality of transaction
Question 7: Does Blockchain meet its users
expectations in terms of quality of transaction?

Options Respondents
Yes 24
No 6
Interpretation: From the above graph it has been interpreted that 30 out of 24 respondent says
that transaction quality in terms of users expectations meet their criteria in Blockchain whereas
other 6 respondents says that blockchain does not meet users expectations in terms of quality of
transactions. From the above response of participants it is clear that blockchain does meet their
users requirements especially in terms of the quality of transactions. As it checks all the
transactions and validate them and then confirms it. This further increases the security of
transactions, exchange of information or documents sue to which customer satisfaction is
improved especially in terms of quality.
Theme 8: blockchain best method of practice for both privacy and security as compared to its
competition
Question 8: Is blockchain best method of
practice for both privacy and security as
compared to its competition?
Options Respondents
Yes 16
No 14
Interpretation: From the above graph it has been interpreted that 30 out of 16 respondent agrees
that blockchain is one of the best method of practice for both security and privacy as compared
to its competitors whereas other 14 respondents do not agree with this and says that it is not the
best method to be practiced in order to focus on security and privacy as compared to its
competitors. From above questions and responses of the respondents it is clear that blockchain is
one of most efficient and effective way through which information or documents can be
exchanged, secure transactions can be done. Other than this due to no central authority and
decentralized database privacy and efficiency of the technology also increase.

Theme 9: data stored in blockchain encrypted
Question 9: Is the data stored in blockchain
encrypted or not?
Options Respondents
Yes 17
No 10
No idea 3
Interpretation: From the above graph it has been interpreted that 30 out of 17 respondents says
that All the data that is stored within blockchain is encrypted, 10 of them says that data stored
within it is not encrypted while rest of the 3 respondents does not have any idea whether it is
encrypted or not. From the above responses of respondents it is clear that data stored in
blockchain is encrypted and this encryption is done to reduce tempering of data or information.
So that all the trading, exchanging documents are done safely. Due to all such reasons it becomes
difficult for the users or for organizations who uses this technology for creating, updating or
receiving any information or doing business, they need to ensure whether the business done on
this platform is done safely or not.
Theme 10: Does it provide secure transaction between user and receiver?
Question 10: Does it provide secure transaction
between user and receiver?
Options Respondents
Yes 15
No 15
Interpretation: From the above graph it has been interpreted that 30 out of 15 respondents says
that blockchain provides secure transaction between user and receiver whereas other 15 says that
it does not provide secure transaction between user and receiver. So, from the above response of

participants it is not clear whether it does provide secure transaction between user and receiver or
not as 15 participants had said yes while other 15 has said no. it is not clear from the above
responses of the users as the responses of the participants is fifty- fifty. But from the literature
review it is clear that transaction between user and receiver is secure due to its incorruptible
ledger all the economic transactions are validated virtually both efficiently and effectively.
From the above discussion it has been analyzed that blockchain is quite a secure
technology which provides complete privacy. This analysis has been done on the basis of
discussion done above. It provides a safest way through documents can be transferred, quality of
transactions done within it are as per the expectations of user. It has also been analyzed that it is
one of the best method through which both security and privacy of documents can be achieved as
compared to its competitors. It has also been discussed that all the data stored and transferred
within it is encrypted which increases the security of transaction done between user and receiver.
5.3 Blockchain impact on Trade Finance process Improvement
In this research analysis part Blockchain impact on Trade Finance process Improvement
will be discussed with the help of questions that were asked to all the 30 respondents. All the
questions that will be discussed below will clear the impact of blockchain trade finance.
Theme 11: Blockchain provides transparency within location and ownership of goods
Question 11: Does blockchain provides
transparency within location and ownership of
goods or not?
Options Respondents
Yes 18
No 12
Interpretation: From the above graph it has been interpreted that 30 out of 18 respondent says
that blockchain does provide transparency within ownership and location of goods whereas 12
does not agree to it that transparency is provided by the blockchain within ownership and
location of goods. So from the above responses of the respondents it is clear that it does provide
transparency within location and ownership of services or goods. This is due to its immutable
ledger all the information present is open and available for everyone which increases the

transparency. Due to this transparency all the users are accountable for their own actions as
transactions are done safely, information is passed autonomous way of passing information.
Theme 12: Documents linked through blockchain approved and reviewed
Question 12: Are documents linked through
blockchain approved and reviewed or not?
Options Respondents
Documents are approved and reviewed 21
Not approved and reviewed 9
Interpretation: From the above graph it has been interpreted that 30 out of 21 respondents
agrees that all the documents that are linked through blockchain are approved as well as
reviewed whereas other 9 participants do not agree with this and says that documents are not
reviewed and approved. From the above response from participants it is quite clear that All the
documents that are linked through blockchain are validated, reviewed and then approved. This is
because all the documents linked are first of all validated, then it is reviewed and after this
process it is exchanged or passed to the receiver. This also helps in updating the documents
present at all ends if any change within the document is done.
Theme 13: Blockchain helps in streamlining trade finance process
Question 13: Does blockchain helps in
streamlining trade finance process?
Options Respondents
Yes 25
No 5
Interpretation: From the above graph it has been interpreted that 30 out of 25 participants
agrees to the point that blockchain helps in streamlining trade finance process whereas rest of the
5 participants says that it does not help in streamlining trade finance process. It is pretty clear
from the responses of above respondents that it helps in streamlining trade finance process

because of its data structure that allows digital ledger to be created which can be further
distributed within the network through cryptography which helps in transferring ledger securely
without any central authority.
Theme 14: Blockchain allows creation and distribution of secure digital ledger transaction
among digital network
Question 14: Does blockchain allows creation
and distribution of secure digital ledger
transaction among digital network?
Options Respondents
Yes 22
No 8
Interpretation: From the above graph it has been interpreted that 30 out of 22 respondents says
that blockchain does allow distribution and creation of secure digital ledger transaction among
all the digital networks whereas other 8 respondents says that it doesn't allow creation and
distribution of secure digital ledger transaction in all the other digital networks. This response
collected from the respondents clearly says that blockchain does provide a secure digital ledger
transaction due to one main reason which is use of cryptography. Cryptography ensures that each
participant within the network receive the ledger securely without any central authority.
Verification and validation is by default done in cryptography due to which ability of blockchain
to streamline trade finance process increases.
Theme 15: Creation of smart contracts within blockchain
Question 15: Can smart contracts be created
within blockchain or not?
Options Respondents
Yes 28
No 2

Interpretation: From the above graph it has been interpreted that majority of 30 out of 28
respondents says that it is possible to create smart contracts within blockchain whereas only 2 of
the other participants does not agree with this and says a perfect smart contract cannot be created
within blockchain. From the above response of majority of respondent says that smart contract
can be created within blockchain which can replace lawyers this is because blockchain does not
have any kind of intermediary party and a decentralized system is present between all the
permitted parties which helps in reducing the time and conflict. Decentralized ledger created and
distributed within the system can also be used to create smart contract. This smart contract can
be stored, converted into a computerized code and saved within the system.
From the above discussion it has been analyzed that blockchain impact on trade finance is
continuously improving and this has been analysis has been done on the basis of above
discussion through which it has been observed that blockchain technology provides complete
transparency within location and ownership of goods, all the documents within blockchain are
always approved and reviewed in order to check its authenticity, it also helps in streamlining
complete trade financial process by creating and distributing secure ledger transaction among
digital network and lastly it also helps in creating smart contract which are authenticated
completely in order to check security of the system.
5.4 Blockchain as a catalyst for Ecosystem, alliances and partnership improvements
In this research analysis part Blockchain as a catalyst for Ecosystem, alliances and
partnership improvements will be discussed with the help of questions that were asked to all the
30 respondents.
Theme 16: Blockchain as a catalyst for the Ecosystem
Question 16: Can blockchain work as a catalyst
for the Ecosystem?
Options Respondents
Yes 17
No 13
Interpretation: From the above graph it has been interpreted that 30 out of 17 respondents says
that it can work as a catalyst for ecosystem whereas other 13 believes that blockchain cannot

work as a catalyst for the Ecosystem. From the above responses of the participants it is clear that
blockchain can work as a catalyst especially for ecosystem. This is because all the projects of
blockchain enable ecosystem to share their benefits within the network. This helps the users to
keep a track of all the projects within the ecosystem. All the participants and users of blockchain
interact with each other initially within the system then with the outside world. This has worked
as a catalyst for the ecosystem which will further open up various markets for individuals and
organizations.
Theme 17: Important records be shared without compromising the privacy and by saving the
cost
Question 17: Can all important records be
shared without compromising the privacy and
by saving the cost?
Options Respondents
Documents are approved and reviewed 18
Not approved and reviewed 12
Interpretation: From the above graph it has been interpreted that 30 out of 18 participants
believes that all kind of important documents or records can be shared without even
compromising with the privacy and also the overall cost can be saved. However the other 12
participants do not believe this and says that sometimes cost and privacy of the records get
compromised while sharing. This response of participants clearly says that it does provide
privacy and saves cost whenever an important document is to be shared with others. This is
because of digital ledger which is created in blockchain and due to decentralized system it can be
shared with everyone without compromising with the privacy. It is one of the most important
factor which increases its importance in internal trade finance sector. Whenever a trade is to be
done on international level and payment of the goods or services is included. Records and
documents plays an important role. This sharing of important records cannot compromise with
the privacy of the record and overall cost of the project which is eventually not compromised

with blockchain technology. This blockchain technology reduces the cost of paper work and the
cost to maintain and update those paper work as all the documentation work is done online.
Theme 18: Partnership with blockchain enterprises helps in growing ecosystem
Question 18: Does partnership with blockchain
enterprises helps in growing ecosystem?
Options Respondents
Yes 15
No 15
Interpretation: From the above graph it has been interpreted that 30 out of 15 participants says
that blockchain's partnership with organizations is helping them in this growing ecosystem
whereas other do not agree with the same and says that this partnership might not help the
enterprises in the growing ecosystem. From the above analysis it is not clear that whether this
partnership help companies in the growing ecosystem or does not help them. From the above
responses of the participants it is not clear that whether this partnership with blockchain
enterprise helps in growing ecosystem. But however from the literature review it has been
analyzed that this partnership with Blockchain enterprises will help in making progress across
the ecosystem especially by the firms who has taken the initiative of enhancing their business
with blockchain by growing ecosystem. Organizations who have experienced partnership in
cloud service etc. are especially following in this ecosystem.
Theme 19: Growth and exploration of business with blockchain
Question 19: Is there any possibility to grow
and explore business with blockchain within the
industry?
Options Respondents
Yes 19
No 11

Interpretation: From the above graph it has been interpreted that 30 out of 19 respondents feels
that in order to explore and grow business within the industry with blockchain is helpful whereas
other 11 respondents does not feel the same and says that blockchain does not help in growing
and exploring the business with blockchain. From this response of the respondents it has been
analyzed that blockchain is helping the business to grow and explore and this is because
blockchain technology is providing organizations a new platform to expand and explore their
business. It is also providing organizations a way to move their business or explore new market
so that they can increase their business in different way.
Theme 20: Blockchain technology in innovation
Question 20: Is this blockchain technology
helping in innovation or not?
Options Respondents
Yes 15
No 10
Maybe 5
Interpretation: From the above graph it has been interpreted that 30 out of 15 participants says
that this blockchain technology is helping in innovation, 10 respondents says that it does not help
in innovation whereas 5 of them are are not sure whether blockchain helps in innovation or not.
As the above answers of the respondents are bifurcated into three different response within
which few of them have no idea of the question and from the rest of the respondent it has been
analyzed that blockchain is helping in innovation this can be analyzed and concluded because
this blockchain technology is breaking grounds in different market. Many organizations are
trying to focus on innovation as it provides security and privacy due to which chances of fraud is
decreasing and level of innovation within organizations is increasing.
Findings: As per the above analysis following things have been analyzed such as: there is
no central authority that control blockchain transactions. It has also been analyzed that the
impact of blockchain on trade finance transactions is good. As it reduces the possibility of fraud,
inefficient transactions etc. for trade finance. It is an effective and safe way of exchanging

documents because each user or participants maintains their own database which provides
privacy and safety to all the data, information or to the documents that are exchanged from one
user to another. From the above discussion it has also been analyzed that blockchain is a good
catalyst for Ecosystem and has improved alliances and partnership with other organizations. This
analysis has been done on the basis of above discussion through which it has been observed that
blockchain can work as a good catalyst for the ecosystem, it helps the user and receiver to
securely transfer important records without compromising with its cost and privacy. It has also
been analyzed that All the organizations or enterprises that has partnership with blockchain are
being supported in this ecosystem. This is helping the organizations to grow and expand with
blockchain within their industry and is also helping the companies to increase the level of
innovation within their organization.

28.1.1 Chapter 6: Conclusion and Recommendations
Conclusion
From the above dissertation “ Blockchain's role and application in International trade
finance with empirical evidence from US import/export, it has been summarized that Blockchain
is growing technology. It is also one of the biggest all – in – one crypto company which helps in
securely sharing documents, transactions. The data structure of blockchain allows its users to
manage and create transactional ledger which is completely digital which can be easily be
managed and shared through cryptography within the digital network. Such kind of ledger
statements can be easily be updated and modified by the users as there is no central authority.
This technology can be easily be used in both domestic and international trade finance system.
With the help of this technology users can easily do secure transactions as one of the main
advantage of this technology is that it provides a safe and secure mode of doing transaction. In
fact in blockchain there is no need of maintaining many copies of same transaction and also there
is no need of updating all the copies of the document present within the databases. This is one of
the advantage that can be used as a benefit in international trade finance as because the biggest
problem that is faced in it is maintaining and managing large volume of documents and records
which becomes easy with blockchain technology. This blockchain technology also helps in
reducing the overall trade cost and paper flow cost as all the work is done digitally. This helps
the international traders to manage all of their documentation in a single report which will
contain all the necessary information that can be accessed and modified by all the authorized
participants at the same time. It also maintains a decentralized database which helps in providing
security and privacy of transactions and documents of the user. This eventually helps in
increasing transparency, efficiency, security, privacy, profit margin etc. in international trade.
From the above dissertation it has also been analysed that there are various other benefits
due to which blockchain technology is used such as it provides a benefit of traceability. All the
transactions done whether on domestic level of on international lever are authenticated and
verified which helps in decreasing any kind of fraud that can occur at domestic level or at
international level. This authentication and authorization enhance security level of transactions
done on international level. This blockchain technology has also helped in overcome any issue in
the trading process in fact it helps in simplifying the trade process. Due to this companies can
grow their business in international market by increasing their flexibility, robustness and

availability within the global market. Blockchain technology has been seen as an effective and
efficient solution to all the problems that are faced in international trade finance. It has also been
analysed that blockchain can work as a interaction platform that can be used to exchange
important documents or information, safely create and distribute digital transactional ledger
within the network, exchange transaction statement or transfer money to others account. Due to
this effectiveness, security and efficiency it is gaining popularity in international trade market.
This also helps the organizations to predict consumers behaviour which eventually helps the
companies to develop a way through which they can bring improvement within them. It is one of
the most effective technology for all sized organizations in all the countries whether they are
developed, under developed or is developing. All the international trading organizations who
does trading and negotiation of goods and services in both import and export finds this
technology useful and beneficial as the overall trading process has been improved in various
ways.
It has also been analysed from the above observation that there are various issues that are
faced in international trade financing such as stolen goods, damage to goods, fraud in financial
cases etc. are common in international trading. Due to this not only the trading company suffers
by insurance companies also suffers a lot. Blockchain technology has also helped in reducing
such issues as without this technology all such issues take both time and money and loads of
paper work which has been resolved by reducing paper work, securing transaction, increasing
transparency within the digital network. This further also helps in tracing location and
ownership of products and services as it helps in identifying fake ownership of any services or
product so that it becomes easy for the consumers to know the ownership, quality of services and
timely delivery of products or services. This cryptographic blockchain technology has been a
beneficial use for various persons. All the documents or record list are inter connected with each
other through blocks so that all the records, informations, denouements etc. can remain
connected to each other which reduces chances of mismanagement.
From the above discussion it can be concluded that impact of blockchain on trade
financial transaction has increased its efficiency in various ways as there is no transaction cost
within blockchain as all the transactions within blockchain is done using tokens and that data is
saved in blocks. Due to its decentralized database there is no central authority that controls
blockchain transactions as its database is distributed all over the digital network. All the users

maintain, update and manage their own database. It has a huge impact on trade financial
transactions as due to this financial transactions are done in more safe, secure and efficient
manner which has reduced the possibility of fraud in terms of transactions. So for this safe check
of execution of transactions is done by validating and reviewing transactions, which completely
automates the transaction process. This increases opportunities for organizations who uses this
blockchain technology. This technology has also helped in impact of blockchain on product
integrity, security and privacy is also high. All the documents can be exchanged within
blockchain can be transferred and exchanged easily, safely and effectively due to validation,
verification and reviewing of documents they are safely transferred. Due to interconnected
blocks information related to documents or reports are easily updated at all places. Due to this
safety and security of document transfer they can meet users expectations in terms of quality
especially for transactions and document exchange. Due to this privacy of security of users
sensitive information and documents is not compromised and if this technology is compared to
competitive technology them it is way much better then any other technology.
It has also been analysed that this security of data, transactions etc. is because all the data
stored within blockchain is completely encrypted through cryptography method. This method
increases the security of transaction between user and receiver. Blockchain impact on trade
finance process is positive as from the above discussion it is clear that due to blockchain
international trade finance process has been improved as all the loopholes within this process has
been reduced or improved like paper work is reduced through digital data, financial transaction
process has also been improved, verification of documents and transaction is done automatically
which eventually streamline trade financing process with the help of distribution and creation of
digital transaction ledger which can also help in creating smart contracts. These smart contracts
can also help in improving trade finance process. Lastly, it can be said that blockchain
technology is working as a catalyst for ecosystem due to which partnership with blockchain
enterprise is increasing which is helping in growth of ecosystem. This growth is also helping
other organizations to explore new areas of business so that they can grow and expand their
business by eventually increasing the level of innovation within them.
Recommendations
From the above discussion of dissertation on “ Blockchain's role and application in
International trade finance with empirical evidence from US import/export here are few

recommendations which can enhance the use of blockchain in international trade finance sector
such as: Privacy is a huge concern associated with blockchain so, they can focus on their security
and privacy issues if it is required to be used in international trade market. Digital coins use can
be increased by increasing the anonymity and untraceability within their design. This can
increase their security even more which will also help in improving their privacy so that more
transactions will be done on it and more number of documents can be exchanged within it
without any privacy concerns. This will also help in enhancing their overall performance and
dependency on interoperability within blockchain technology. Another recommendation for
blockchain is that they should try to reduce their operation complexity as sometimes it is quite
difficult for the users to understand the operability and the procedure that they need to follow.
Lastly they should try to improve their legal framework so that any kind of conflict that occurs
can be easily resolved. If all these three factors are focused and improved then it can enhance and
improve this technology and its use internationally especially in trade financial sector as the main
demand of this sector is security, privacy, efficiency so that time and cost can be reduced, safety
and security can be improved.

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30.1.1 APPENDIX
Questionnaire
Questions
Respondents
1. Is any kind of transaction cost in Blockchain?-No
◦ Yes
◦ No
2. Is there any kind of central authority that controls Blockchain transactions?
◦ Yes
◦ No
3. Is impact of Blockchain on trade financial transaction good and effective or not?
◦ Yes
◦ No
4. Does Blockchain allows safe check and automatic execution of transaction or not?
◦ Yes
◦ No
5. Is the opportunity offered by Blockchain to finance trade is cheap and less risky?
◦ Yes
◦ No
6. Is blockchain an effective and safe way of exchanging documents?-Yes
◦ Yes
◦ No
◦ Does Blockchain meet its users expectations in terms of quality of transaction?Yes
◦ No

7. Is blockchain best method of practice for both privacy and security
as compared to its competition?
◦ Yes
◦ No
8. Is the data stored in blockchain encrypted or not?
◦ Yes
◦ No
◦ No idea
9. Does it provide secure transaction between user and receiver?
◦ Yes
◦ No
10. Does blockchain provides transparency within location and
ownership of goods or not?
◦ Yes
◦ No
11. Are documents linked through blockchain approved and reviewed
or not?
◦ Documents are approved and reviewed
◦ Not approved and reviewed
12. Does blockchain helps in streamlining trade finance process?
◦ Yes
◦ No
13. Does blockchain allows creation and distribution of secure digital
ledger transaction among digital network?
◦ Yes
◦ No
14. Can smart contracts be created within blockchain or not?
◦ YesNo

15. Can blockchain work as a catalyst for the Ecosystem?
◦ Yes
◦ No
16. Can all important records be shared within compromising the
privacy and by saving the cost?
◦ Yes
◦ No
17. Does partnership with blockchain enterprises helps in growing
ecosystem?
◦ Yes
◦ No
18. Is there any possibility to grow and explore business with
blockchain within the industry?
◦ Yes
◦ No
◦ Maybe
19. Is there any possibility to grow and explore business with
blockchain within the industry?
◦ Yes
◦ No
◦ Maybe
20. Is this blockchain technology helping in innovation or not?
◦ Yes
◦ No
◦ Maybe