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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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3 Reasons Why Positive SSL Is Perfect For Simple Websites

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Figuring out the best SSL for your site is never a good time. For small website owners, it can especially be a minefield. With so many different price points and all this talk of validation levels and multiple subdomains, it’s natural to feel overwhelmed. Do you really need all that stuff for your site? The answer is probably not. That’s why this article is going to argue the virtues of the PositiveSSL certificate from Sectigo Certificate Authority (CA).

Whether you have a blog, an online portfolio, or a personal website, a Positive SSL is the perfect choice for bringing web encryption to your site. Here’s why:

  • Your site will be more secure

This is the case for SSL certificates in general, but it never hurts to stress the importance of web encryption. An SSL certificate will help create an encrypted connection between your site and anyone using it. This means that malicious actors will not be able to intercept any information sent over this connection. This is good for you and good for your users. When they visit your site and notice the padlock symbol in the browser address bar, they’ll immediately feel at ease.

  • It’s cheap and fast

When it comes to SSL certificates, the varying price points can be a little confusing. Different prices are due to many reasons, such as the CA or reseller you’re purchasing from, the number of domains and subdomains you have, and the validation level. 

Positive SSL tends to be the most affordable option no matter where you’re purchasing it from because it’s for a single domain and has the lowest level of validation, known as domain validation. With domain validation, the CA will only check that you own the domain you wish to secure. Because this level of assurance has fewer checks than the other kinds, Positive SSL certificates tend to be issued faster, too. For a simple website that doesn’t require logins, filling in forms, or conducting business transactions, this kind of SSL is all you need.

  • It’s from a trusted CA

Having been in the cybersecurity business for over two decades, Sectigo accounts for over 34% of the global commercial SSL certificate market. For this reason, it’s a name that is synonymous with trust. Not all CAs are created equal, so when you come across a new CA, it’s vital to do your research to ensure that their certificates work with major web browsers. With Sectigo, this won’t be an issue.

Conclusion

These days, due to tightening security rules from web browsers and search engines, websites of all sizes need an SSL certificate, even your tiny, unassuming blog or personal website. Keep things affordable, easy, and — most importantly — secure by opting for a Positive SSL.

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