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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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World

Bringing clean water – Christopher Kenny’s Preservation Earth Project

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Science plainly shows that a human can survive three weeks without food, yet most individuals cannot survive three to four days without water! Dehydration sets in, and the person will go into shock and become vegetative even if they continue to breathe. In other words, water is an essential requirement. A living thing cannot thrive without it. Nonetheless, it is a horrifying truth that billions of people worldwide lack access to safe drinking water. 

In developed countries, when everything from technology to luxury is available, receiving clean water at home is as ‘natural’ as breathing fresh air. Most individuals in advanced nations may not pay much attention to it, but this is not the case for the rest of the globe. Many countries continue to lack access to clean water sources or water appropriate for human use. Safe drinking water, sanitation, and hygiene at home should not be limited to the wealthy or those who live in cities. These are some of the most fundamental human health requirements, and all countries must ensure everyone has access to them.

The Preservation Earth Project (PEP) made its way to Tsaile, New Mexico. Over time, uranium mining, fracking, and pesticide abuse damaged the water supply, resulting in a high occurrence of numerous illnesses. Approximately 35% of the Navajo people do not have access to flowing water, and some must go to a remote location to fill barrels with water from a polluted local spring. 

There is no doubt that climate change is boosting storm strength. Recent natural catastrophes have heightened the need for groups to step up and give support, answers, and relief to individuals affected by such natural disasters. The Preservation Earth Project is a non-profit organization that provides support, education, and solutions to help society transition from fossil fuels to renewable energy.

A look back at Christoper Kenny’s life

Chris Kenny was born in Summit, New Jersey, on May 4, 1961. He was one of twelve children. In 1980, he received a B.A. in economics and finance from Warren Wilson College in Swannanoa, North Carolina. He also attended New York University, earning a commercial real estate management degree from the Schack Institute. Since 2018, he has served as the head of Strategy and E-trading at Hartfield, Titus, and Donnelly. Kenny started his career in the U.S. In 1985. He worked as a Treasury Bond Broker. He formerly worked at Bonds.com as the director of fixed income sales and technological development. His academic background is in business and finance. Chris is passionate about developing and promoting renewable energy, mainly when it is used to assist people in need. The potential to aid those in urgent demand as a result of a human-caused environmental or natural disaster is not just a philanthropic act but also a once-in-a-lifetime educational opportunity.

He used solar power on mobile platforms as a backup power source for emergencies, water purification, and water pumping.

His academic credentials are in business and finance. Chris is passionate about developing and promoting renewable energy, mainly when it is used to assist people in need. The potential to aid those in urgent need as a result of a human-caused environmental or natural disaster is not just a philanthropic act but also a once-in-a-lifetime educational opportunity. He has over 38 years of experience in finance as a salesperson, broker, trader, and investor.

Making clean water available to everyone

In 2012, Kenny founded The Preservation Earth Project, a 501(c)(3) non-profit organization. It provides assistance, education, and alternative energy solutions to help society shift to renewable energy. It was involved and aided Haiti several times after the 2010 earthquake, providing portable solar electricity for water purification and medical facilities. In 2020, the business devised a solution for the Navajos’ contaminated water source. They collaborated with engineers and local officials to build, produce, and install a solar-powered water filtration system for the Navajo people of Tsaile, New Mexico. Other activities have included providing portable solar power to the “Cajun Navy” for rescue and clean-up in areas devastated by the 2015-2021 hurricane season in Louisiana. 

The project designed, delivered, and installed a solar-powered filtration system that will provide clean drinking water to the local Navajo community 365 days a year for many years to come. Several more initiatives are in the works to provide safe drinking water to Native American communities on the Navajo Reservation.

President’s letters of gratitude

President Jimmy Carter sent Chris two heartfelt letters encouraging him to continue his charitable work. He suggested calling Habitat for Humanity and asking if they were interested in collaborating on a few projects. He and Kenny both helped out at the charity. 

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