Analyzing Blockchain Technology's Impact on APEC International Trade

This report delves into the impact of blockchain technology on international trade within the Asia-Pacific Economic Cooperation (APEC) region. It begins by clarifying that blockchain is not limited to cryptocurrencies like Bitcoin, but is a virtual ledger used to record transactions. The paper highlights the role of APEC, established to leverage the increasing interdependence of the Asia-Pacific region, and explores how blockchain can be implemented across APEC's diverse markets to streamline international trade. The research aims to analyze blockchain's effectiveness in increasing international trade within APEC economies, focusing on its advantages like cryptography for data security, consensus mechanisms for transaction validation, and validity rules for trade regulations. The literature review emphasizes blockchain's potential to reduce trade barriers and enhance efficiency, while also acknowledging its limitations, such as difficulties in updating and the complexity of technology development. The methodology includes both primary and secondary data collection methods, along with ethical considerations to ensure responsible research practices. The report concludes by summarizing the advantages and disadvantages of using blockchain technology in international trade across APEC economies and its potential for improving transparency, security, and efficiency in trade transactions.

Running head: BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Name of the Student
Name of the university
Author note

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Table of Contents
Introduction................................................................................................................................4
Research Aim.............................................................................................................................4
Research Objectives...................................................................................................................5
Literature Review.......................................................................................................................5
Research Methodology...............................................................................................................6
Data Collection Method:........................................................................................................6
Data Analysis Method:...........................................................................................................6
Ethical Issues:.........................................................................................................................7
Research Limitations:.............................................................................................................7
References..................................................................................................................................8

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Introduction
Blockchain does not have any connection with that of Bitcoin or any other form of
cryptocurrency. Bitcoin is just one of the many applications of blockchain technology.
Blockchain, a virtual ledger is useful in recording transactions between different parties. The
transactions done can be either pecuniary or may be of any other sort (Crosby et al., 2016).
Dating back, the records used to be kept by some third parties and it was a centralized process
having an advantage of technical efficiencies but certainly, if an error were committed by the
third party, transactions got delayed or corrupted. In order to decentralize the process of
record-keeping, Satoshi Nakamato developed the system where the transactions had to be
announced publicly and noted by each of the participants of the huge network. This allowed a
consensus that was decentralized in nature relating to the history and the order of the
transactions. The APEC here denotes the Asia-Pacific Economic Cooperation that is the
regional economic forum and was established in the year 1989 so that it could leverage
effectively the increasing interdependence of Asia Pacific (Gilpin, 2016). APEC economies
comprise of different range of markets along with distinct levels related to the digital
economy as well as the adoption of technology. Blockchain can be implemented across the
borders of APEC as it can be a virtual track record of the transactions during international
trade.
Research Aim
The paper will be discussing on the blockchain technology and its impact on the trade of
APEC. It will analyze the related facts on the same and will be focussing strictly on the use of
blockchain technology and how it can be effective in increasing international trade in APEC
economies.

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Research Objectives
1) To understand the importance of blockchain technology in the present times.
2) To make utilization of the blockchain technology in increased trade of the APEC
economy.
3) To find out the difference between the scenario when blockchain technology was absent
and when it is present now.
Literature Review
The markets become more efficient when they get the facility to carry out trade. This
generally refers to a reduction in the costs to the businesses that are operating. It also has
certain provisions for the regulators and the government officials who are working towards
the set goals. From the time of its inception, APEC has been working to bring in a reduction
in the tariffs and different other barriers that come in way of trade. It has created some most
efficient domestic economies at the same time increasing the exports. The growth rate in
regional trade has been almost three times the establishment of APEC. International trade
across APEC can make use of the blockchain technology in its trade transactions. The
blockchain technology has distinct characteristics that can help the international trading
system across APEC. The characteristics and how these can help APEC in international trade
are as follows:
Cryptography- It is the technology that has an important role in the case of addressing
specific types of vulnerability related to information. APEC comprises 21 member countries
and trade between these nations requires a transformation of volumes of information
(Mueller-Eberstein, 2017). The security of this information is necessary and thus
cryptography can help in this above scenario. It can help in ensuring that the confidential data
are safe and undisrupted.

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Consensus- In the trading system across APEC volumes of transactions are made and these
need to be recorded for the financial statement. Consensus is a critical characteristic of the
blockchain technology and it refers to certain algorithms that help in determining the
sequence as well as the validity of the day to day transactions being made.
Validity Rules- In the case of international trades there need to be certain validity rules
determining which of the transactions is valid and which are not. This facility is there in
blockchain technology and is used in the case of trading across APEC.
The deployment of the blockchain technology needs to have a certain framework of
regulations that are effective in recognizing the validity of the blockchain transactions on a
legal basis. As APEC comprises of 21 countries, therefore, it should be kept in mind that the
cross-border regulations need to be followed in case of the use of blockchain in the
international trade. The blockchain technology permits access to volumes of information or
data set by the players of the industry, individuals, and government (González & Jouanjean,
2017). The process and control procedures are predefined. The responsibility to access the
data is predefined as well. There are various existing rules and regulations that are applicable,
for example, the regulations on cybersecurity such as that of the EU’s Networks and
Information Systems, the laws that related to the internet and the associated laws related to
privacy and protection of data, for example, the EU General Data Protection Regulation.
Blockchain technology stores the immutable data and the data stored cannot be changed
easily. This aspect of blockchain will beneficial for the transactions across APEC economies
as it also allows the data to be shared easily. Transparency is maintained in the records with
the help of the blockchain technology as the stored data can be easily tracked and traced.
Across APEC there are numerous kinds of businesses thus at every stage verification of
authenticity is required.

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
There exist APEC Cross-border privacy rules 15 and OECD privacy principles 16 along with
some broader laws protecting the customers against the risks of the misuse of the data of the
customers, negligence of the corporate and other such criminal offenses. The disadvantages
of technology can disrupt trade across APEC (Notheisen, Cholewa & Shanmugam, 2017).
The disadvantages of using blockchain technology in trade across APEC are as follows:
1) It is difficult to update and eliminate errors. Trade involves financial transactions that
are liable to changes but with this difficulty, it creates a problem in international trade.
2) Difficulty in developing technology is another aspect. As discussed above consensus is a
critical element in the blockchain technology that can be used in trade across APEC but it
requires applying complex protocols to achieve the same.
Research Methodology
Data Collection Method:
The study will be based on the collection of primary and subordinate data origin. Data
that will be gathered through various sources like a survey or interview is called primary data.
All kinds of data available online or in printed form are termed as secondary data (Crosby,
2016). Both kinds of data will be used for studying this paper.
Data Analysis Method:
The quantitative data’s analysis will be gathered from the survey, the gathered
information will be altered into percentages and numeric in order for gaining a comparison
and comprehensive data from the information collected. These data will be changed into
graphs and charts for presenting a pictorial or graphical representation. The thematic
technique will be used for evaluating qualitative data (Pilkington, 2016). The data collected
through the interview will be written regarding several themes that are related directly to the
research paper.

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
Ethical Issues:
Stern ethical rules will be pursued in the research. Participation in the survey will not
be mandatory for anyone for primary data collection. Every contributor will sign a form for
making sure of their willing participation. No organization’s symbol or logo will be used in
the paper and the research will only focus on educational purposes. For avoiding any kind of
plagiarism, referencing is essential in secondary data (Swan, 2015). Thus no actions should
be taken in violating the rules and regulations of the guidelines of ethics.
Research Limitations:
There are many limitations in a research study, irrespective of how properly it is
designed. The time stand is a problem in every research in the first instance. Resources
availability is also a factor. However, some resources might not be available or not
accessible. The outcome received from the contributors may not be sufficient for getting an
expected result (Zyskind and Nathan, 2015). In addition, getting permission for the surveys
for the interviews can be a problem.

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BLOCKCHAIN TECHNOLOGY IN INTERNATIONAL TRADE IN APEC
References
Allen, D. W., Berg, C., Davidson, S., Novak, M., & Potts, J. (2019). International policy
coordination for blockchain supply chains. Asia & the Pacific Policy Studies.
Crosby, M., Pattanayak, P., Verma, S., & Kalyanaraman, V. (2016). Blockchain technology:
Beyond bitcoin. Applied Innovation, 2(6-10), 71.
Gilpin, R. (2016). APEC in a new international order. In From Apec to Xanadu: Creating a Viable
Community in the Post-cold War Pacific (pp. 14-36). Routledge.
González, J. L., & Jouanjean, M. A. (2017). Digital Trade.
Hofmann, E., Strewe, U. M., & Bosia, N. (2017). Supply chain finance and blockchain technology:
the case of reverse securitisation. Springer.
Iansiti, M., & Lakhani, K. R. (2017). The truth about blockchain. Harvard Business Review,
95(1), 118-127.
Mueller-Eberstein, M. (2017). The next radical Internet transformation: How blockchain technology
is transforming business, governments, computing and security models. ACM
webinar. Innovation Economy Institute, Rutgers University.
Notheisen, B., Cholewa, J. B., & Shanmugam, A. P. (2017). Trading real-world assets on
blockchain. Business & Information Systems Engineering, 59(6), 425-440.

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Pilkington, M. (2016). 11 Blockchain technology: principles and applications. Research
handbook on digital transformations, 225.
Swan, M. (2015). Blockchain: Blueprint for a new economy. " O'Reilly Media, Inc.".
Zaki, C. (2015). How does trade facilitation affect international trade?. The European Journal of
Development Research, 27(1), 156-185.
Zyskind, G., & Nathan, O. (2015, May). Decentralizing privacy: Using blockchain to protect
personal data. In 2015 IEEE Security and Privacy Workshops (pp. 180-184). IEEE.