Blockchain will reduce supply chain risk significantly - effectively eliminating fraud while at the same time levelling the playing field for companies in the digital space. According to Louise Wiggett, MD of Global Trade Solution, multinational organisations lose up to 5% of revenues to fraud each year. “Research has indicated that half the companies in the UK have been affected by fraud or other economic crime in the past two years,” she said. “Blockchain combats fraud because the ledger is constantly reconciled and can only be updated when verified by both parties or users.” She said because Blockchain allowed for “permissioned” networks it also levelled the playing field in the digital environment, empowering users to determine what personal data and information they wanted to share, where and with whom. Wiggett said the general consensus the world over was that blockchain had the potential to facilitate a more efficient and seamless global trade, with many arguing that it could play a significant role in expediting customs procedures, reducing expenses and boosting global trade volumes. This outlook was supported by the latest research by economists. “As trade improves in Africa so does the need for the easier movement of goods, services and people across borders. Technologies like blockchain will enable and drive this growth and expansion while reducing costs.” According to Wiggett this was being proved in a customsto-customs connectivity project between South Africa and eSwatini. This project has enabled the movement of data between the customs authorities, increasing trade facilitation and safety.
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Multinational organisations lose up to 5% of revenues to fraud each year. – Louise Wiggett