Business Idea - Crypto International Trade Settlement - Verification Institutions
In traditional international trade, banks act not only as the payment settlement facilitator, also as guarantor of fulfillment via a method of payment called documentary credit. In over-simplified terms, the bank guarantee the availability of fund upon documentary credit issued, and will check the confirmation documents to verify fulfillment before releasing payment. Usually, at least 2 banks are involved, and each may charge up to a few percentage of the total payment amounts. Smart contract may become a cost efficient way of doing international commerce.
To facilitate smart contract operation in the upcoming future, the current verification via confirmation documents will be obsolete. So, all the third-party verification must transit into operates in crypto smart contract way. Many new opportunities may arise, and current institutions need many new talents or equip current talents with appropriate skills.
PS: Every year, trade transactions of over US$1 trillion are conducted on the basis of these ICC rules on documentary credits—now known as UCP600. Starts from 2019, International Chamber of Commerce (ICC), the institution that stipulate common rules of international trades & payment rules, already working on the framework of including BlockChain technologies to the rules: https://iccwbo.org/media-wall/news-speeches/tag/blockchain/
Still, banks are highly involved.
To facilitate smart contract operation in the upcoming future, the current verification via confirmation documents will be obsolete. So, all the third-party verification must transit into operates in crypto smart contract way. Many new opportunities may arise, and current institutions need many new talents or equip current talents with appropriate skills.
PS: Every year, trade transactions of over US$1 trillion are conducted on the basis of these ICC rules on documentary credits—now known as UCP600. Starts from 2019, International Chamber of Commerce (ICC), the institution that stipulate common rules of international trades & payment rules, already working on the framework of including BlockChain technologies to the rules: https://iccwbo.org/media-wall/news-speeches/tag/blockchain/
Still, banks are highly involved.
1. Smart Contract Analysis, Verification & Interpretation for "Physical Commerces" Consultation & Training
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These talents/consultants will be needed in all related parties.
2. Development of "GUI"/"EDI" for Smart Contract Confirmation Operations
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3. Legals professions also needs to understand smart contract & able to verify the code of smart contract is/are the same as the intention of both (or more) contract parties. Also, determine the related R&R for all parties involved.
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4. Bridging the physical & crypto-digital operations
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5. Cargo Inspections, Verifications & Confirmations in Smart Contract
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6. Logistics Operations
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7. Freight Insurance
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8. To be continue...
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I used to be a marketing & operation manager in commodity (stainless steel) industries, so have had some experience dealing with trae commerce operations.
Will take some time to expand it.
PS: have been listening to James' podcast for years. Great show!
Great show, and love the behind-the-scene peek.
Working on some other start-up ideas, around content creator, hope will have chance to cross path with you & learn from you.
There are still a lot of components (talents, operations etc) & cultural needs to be change. I just hope putting up democratized ideas & probably taking some actions could help the progress.