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3 Reasons International Trade is still resisting Blockchain, According to HadariOshri

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Deep rooted culture creates barriers when it comes to modernizing the oldest industry in the world.

But just because technology is available, does not mean that it will be fully adopted. Take international trade for example. It would seem that blockchain would solve many of the legacy and manual processes in selling and shipping containers. To help us better explain why there is still resistance to this technology within international trade, we reached out to serial entrepreneur HadariOshri. With a background in buying and selling containers of fast fashion excess inventory, Hadari has pivoted to helping hospitals and other organizations source much-needed medical supplies and PPE from suppliers around the world.

Virtually sitting down with Hadari, I asked her some questions to better understand why there is still such resistance to adoption of blockchain technology. Hadari shares three factors that she says explains why.

  1. Cultural resistance

Hadari shared that part of the resistance to blockchain when it comes to import and exports is rooted in the culture of the shipping industry. “Sometimes the deals are closed just because the partners have been doing business together for many years,” she explained. “Many older players just don’t seem to be open to change.” She tries to talk with them about the benefits of blockchain, and how it can help support transactions by building trust. But most are not ready to listen, or simply stop the conversation saying that it’s just not going to happen.

The idea of digitization for some is a direct threat to the way that they have always done business. Some fear that it takes the personal elements out of the transactions. Hadari tries to explain how blockchain could help to build more trusted relationships through transparency.

“Digitalization is already happening in the industry, but mixed with older more traditional methods, the issue becomes how to ensure that the digitized data is not only highly secure, but also accessible throughout the whole process, allowing for existing relationships to strengthen not separate.”

  1. Imports and Exports is data driven, with manually inputted data

If you boil it down, there are two parts to global trade. There are the things that move and the tracking data about those things. Tracking these moving parts for containers that are shipped globally are traditionally maintained in ledgers. The primary method of maintaining these ledgers has been a manual process done by humans, documenting on paper, and more recently on computers.

“Blockchain is a digital decentralized ledger, where multiple transactions are put into a block and stored across multiple devices,” Hadari explains. “Hence the name blockchain. They are good at maintaining informational states and if used could help the shipping industry create ledgers that are more transparent and trustworthy. Over time, if ledger data is entered into the blockchain, it lessens the chance for human error, making it nearly impossible to create false information.”

“The biggest problem is that the current antiquated system of manually filling out multiple data points along the supply chain is that it creates a significant risk of human error,” said Hadari. “It does not have to be malicious, it could just be a mistake. But one mistake could cause a lot of problems that ripple through the supply chain. Imagine if a human error resulted in shipments being put on the wrong ships or containers with perishables that sit on a dock so long that they go rotten.” This is one of the core reasons that she believes that the adoption of blockchain will improve on existing processes in a number of ways. But even if she got the buyers and sellers to buy into the idea, there are still the banks to convince.

  1. Resistance from banks

Hadari told me that above all else, “This is a cash-in-hand industry.” She shared a story about a friend who is an independent broker who is bullish on using cryptocurrency, and he suggested using crypto in some of her trade transactions. She laughed and explained that the guys she deals with are very adverse to anything other than cash. She sees the lack of understanding in sellers, buyers, and brokers being a major hurdle to broad adoption of cryptocurrencies becoming mainstream as a means to pay for trade deals.

To try to get banks on board, Hadari looks for opportunities to point out how the blockchain can help improve speed of transactions. She talked about the fact that with larger deals, you are oftentimes transferring money between banks that take multiple days, which leaves the buyers

and sellers monies tied up and vulnerable to unfavourable changes in exchange rates. With the blockchain and verified transactions, money can be moved much quicker.

She explained that there are also a lot of issues around interbank trust. You can trust your buyer, but the sellers bank might have issues in completing the funds transfer. The use of blockchain enables a transparent repository of funds in escrow which can also help build trust.

In conclusion

Using blockchain technology in the imports and exports global industry leads to a higher level of confidence for all. But that is not enough to convince the industry to change. One of the challenges for anything driven by technology is to make that technology easy to understand and use. If it is going to work, Hadari says that blockchain will need to interface with how people are used to do business in a seamless way. And right now, that is not a reality, at least until there is a major cultural shift, an understanding how the technology can build trust, and banks that are willing to deal in cryptocurrency.

Jenny is one of the oldest contributors of Bigtime Daily with a unique perspective of the world events. She aims to empower the readers with delivery of apt factual analysis of various news pieces from around the World.

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Experts Recommend People to Interview Their Accident Attorney Properly Before Hiring Them

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Accident attorneys are working on stringent deadlines with huge work loads. It is advised the construction accident attorney needs to be hired as soon as possible. They will study, investigate the complete case and the potential client before taking up the case. So the sooner they get involved the better the case outcome will be.

If the construction accident attorney is hired at a later stage then costly mistakes are bound to happen. Filing an accident case has deadlines and it is different from state to state. It is important to understand that as the accident happens the medical and hospital bills start mounting plus there is loss of wage. It can get really costly if the attorney is called in late. The best advice the experts will give you is your attorney should be the first person to be contacted when the accident takes place.

Sooner the attorney reaches the cases, the better. If you do not have contact of any New York Construction Accident Lawyer with you, ask a coworker, friend or family to suggest one and do not go beyond the first 2 weeks of the case to get the attorney involved.

The employer’s representative and the insurance company will try to negotiate a deal and get you to sign papers before an attorney reaches you. But never sign any papers without the consultations and presence of an attorney.

Do not worry about the attorney fees because most of them work on contingency fees and also provide free consultation on the case. Be sure to ask all your doubts before hiring the attorney. Get all the detailed information and facts about the construction accident and all of your injuries and financial losses as possible when meeting the attorney. They will have detailed questions about the case for you and so should you.

You should be prepared to understand whether the attorney will be best for your case. Every attorney specializes in different areas of accidents. Some handle the scams and frauds while others are experienced in getting hold of accident cases. Know your attorney before you hire one.

Hire an experienced construction accident attorney well versed in the relevant state and national workplace safety, transportation, negligence, or product liability laws.

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