CRYPTO 101
Brief History of Crypocurrency and Blockchain
The earliest currency existed in the form of commodity currency, and then the later bookkeeping currency, and now Credit currency. As everyone knows, Satoshi Nakamoto has created bitcoin, but few people have noticed that there are still many digital currencies issued before Bitcoin. The reason why the bitcoin has become more famous is that Nakamoto introduced the technology of blockchain in Bitcoin. Technically speaking, the blockchain is a self- timed distributed database, and a distributed accounting system. From a business perspective, blockchain is a valued networking and a computable credit system. In the following paragraphs, we will give a more complete introduction about the blockchain and how to apply it into local international business.
The port of Vancouver is one of the largest ports in Canada, which has become a contributing factor in Canada’s exports. Based on Wikipedia, the port of Vancouver ranks 1st on the volume of foreign exports in North America. 95% of goods transported in the port has served in Canada’s exports and imports. Within an increasing demand from Pacific Rim countries, international trade has become more and more important. From the 2017 financial analysis, the revenue rises 5% to $246 million compared to 2016; also, the Earning before interest and Tax (EBITDA) increased 7% to 149 million in 2017. To develop international trade further, our group focus on some factors that may cause a negative influence on international trade. Finally, we found that there are still some difficulties faced by exports and importers involved in international trades.
The Current Situation
The Struggles of an Exporter
There is not a standardized payment method. In Vancouver, one of the most important exporting goods is mineral fuels. Based on the office of the united states trade representative, the value of the minerals fuels that export to the USA is 73 billion. However, the currency-exchange issue is a potential risk involved in international trade. Every country has their own currencies; however, traders in Vancouver have to exchange for dollars in banks to complete the trade. In the process, companies have to spend a long time negotiating with banks. These complex and redundant procedures may result in a long time and high transaction cost. The much worse byproduct is that the long process may cause a delayed trade, which causes a big loss for traders. Besides the middle step, exports have to burden large risks because of the fluctuating exchange rate.
Information is Power
Many customers are worried about the leverage of personal information during the non-transparent transaction. There are different trading patterns involved in each country, so exports and imports always about their privacy. It is obvious that these worries may impose a lot of barriers and constraints on international trade. Today, most private international transaction payments are completed on the Internet, and the payment method can only provide limited protection to customers. Moreover, because it is difficult for customers to keep track of their order all the time, they may easily feel unconfident in the non- transparent trade and worry about the value of goods.