Blockchain

Blockchain is a decentralized distributed ledger technology that uses cryptography to link transaction data into immutable blocks in chronological order. In foreign trade, blockchain is mainly used to enhance supply chain transparency, simplify cross-border payments, verify certificates of origin, and electronic bills of lading. Use cases include: automatic execution of letters of credit and smart contracts, cargo traceability and anti-counterfeiting, and confirmation of accounts receivable in trade finance. Precautions: Blockchain is not a panacea; it needs to be combined with technologies such as IoT and electronic signatures; different countries have varying legal recognition of the validity of smart contracts; the authenticity of data before it is uploaded to the chain still requires offline verification. Compared with traditional EDI or centralized databases, the core difference of blockchain lies in decentralization, immutability, and traceability, which can reduce intermediary links and trust costs, but throughput and privacy protection remain challenges. Foreign trade practitioners should pay attention to its integration with digital currencies and electronic bill of lading rules (such as MLETR).