How blockchain technology is revolutionizing cross-border e-commerce: a new chapter in payment and supply chain management

Blockchain, a chained data structure that links data blocks in chronological order, not only uses cryptography to ensure that the content cannot be tampered with and forged, but also defines a new distributed infrastructure and computing paradigm. This technology is gradually penetrating into the field of cross-border e-commerce, especially in payment and supply chain management, showing great potential.

Characteristics of blockchain technology and its application in cross-border e-commerce

The core features of blockchain include decentralization, openness, autonomy, information non-tamperability and anonymity. These characteristics make it an ideal tool to solve many challenges in cross-border e-commerce. Taking the supply chain as an example, under the traditional model, the phenomenon of information islands is serious, resulting in high costs of time and money. By introducing blockchain technology, a transparent and credible information platform can be created to realize real-time data sharing among multiple parties, thereby greatly improving the efficiency of supply chain management.

Changes in the cross-border e-commerce payment field

Faster transaction speed

Blockchain-based cross-border payment solutions enable almost “real-time” transfers and provide round-the-clock service. Taking the Ripple payment protocol as an example, transactions that originally took several days to complete can be completed in just a few seconds, significantly shortening the waiting time and improving the user experience.

Significant cost savings

Traditional cross-border payment procedures are complex and involve a variety of fees. However, with blockchain technology, transaction costs are expected to be significantly reduced. It is estimated that the average cost per transaction can be reduced from US$26 to about US$15, mainly due to the reduction of intermediaries, lower compliance costs and simplified error investigation processes.

Improve liquidity

Unlike the traditional model where banks need to reserve a large amount of foreign currency to maintain liquidity, within the blockchain framework, financial institutions only need to use digital currencies to meet demand. Although there is still a situation where multiple digital currencies coexist, this provides the possibility of flexible choices in the future.

Equal trading opportunities

The application of blockchain technology marks a fundamental change in the trust mechanism. It allows banks of any size to compete on the same starting line without being limited by the barriers or high fees of joining the SWIFT system. This trust model based on technology rather than institutions creates a more level playing field for cross-border e-commerce.

To sum up, blockchain technology is changing the operating model of the cross-border e-commerce industry in an unprecedented way. Whether it is from the perspective of improving payment speed or reducing costs, it has shown broad application prospects and value. .