We know that data’s important, especially when there’s a pandemic affecting us globally. We value data more than almost anything. Yet there’s more to data than merely collecting it, and blockchain coould help us to centralize and collate valuable data.
This will encourage globalization in a time of global fear, to create a climate where we can share our data securely but transparently with others online. Here’s how.
Data and globalization – what do they have in common?
According to the World Economic Forum, globalization encourages ‘freer trade, increased foreign direct investment, and the international use of patents and copyrights.’ It requires a distribution of data and investment across the globe and can benefit countries internationally.
This is the prime opportunity for blockchain technology. But what exactly is it that makes blockchain so perfect for globalization? There are two primary reasons:
Trust is at the core of all business transactions, which is why, in most cases, businesses use intermediaries to make deals. However, in the current climate, this is difficult and can drain company’s budgets. Therefore, having trust assured through technology is the perfect way to save costs and improve efficiency at the same time.
Blockchain assures trust by providing a decentralized, transparent and traceable platform so that people can know the data they’re viewing is correct. This, in essence, makes blockchain the intermediary – allowing both companies to ensure trust while also protecting themselves.
This can also apply to the wider distribution of data in situations such as the coronavirus. Blockchain provides trust that the information is coming from a trustworthy source.
Blockchain is compliant with global procedures. Managing cross-border transactions can be incredibly difficult for many global companies. This applies across finances such as tax, border rules and production laws.
As such, blockchain can ensure the transfer of assets across borders without difficulty. Because you can make information public on the ledger, it’s easy to also demonstrate that the company isn’t committing fraud. This saves costs when it comes to auditing as well.
We need to promote globalization online
Because we can no longer trade easily and share the same spaces, it’s necessary for us to rely increasingly on technology. This means implementing blockchain in our companies and supply chains to encourage trust and to ensure the safety and security of our data. Moving digital is the only way to solve this global problem.