Cross-border trade is one of the most characteristic features of the globalization era. Lots of blockchain-based projects have already proven that this sphere can significantly benefit from the introduction of the new technology. However, the success of a project depends on a variety of factors, not only on the technological implementation. Support of the regulators may play a crucial role in the development of a blockchain-based project. The new Global Trade Facilitation platform launched by CrimsonLogic has the advantage of being government-backed.
Open Trade Blockchain is an inclusive and extensible blockchain service. The project has been developed to link ASEAN and China’s Digital Silk Road. The platform is created by The Global eTrade Services (GeTS) which is a full-owned subsidiary of CrimsonLogic. The Singapore-based parenting company is a big name on the local market: it is a leading provider of eGovernment products. Besides being an important company among the government-owned structures, CrimsonLogic is a major port operator.
The GeTS’s platform can be described as a permission-based network. The accredited participating companies will operate trusted nodes which create the blockchain network. The widespread of this platform will bring the trade and supply chain to the new level of transparency as it can enable safe and secure sharing of trade documents.
One of the benefits of Open Trade Blockchain is its simplicity: the drag-n-drop interface is expected to help in the adoption of the platform. One more advantage is its rich customization abilities. Even though the platform is related to as permissioned blockchain, the developers of Open Trade Blockchain have considered the possibility to create decentralized applications for specific needs. This option is essential for the trade community as it allows to expand the types of documents which can be viewed and transacted via the system.
The success of the Open Trade Blockchain Platform can change the trading situation in Asia. The initial destination of nodes providers across Asia creates an extensive network. The power of this network will increase significantly as it acquires the China’s “Digital Silk Road”. Lots of businesses situated in Asia will get an opportunity to work with European and African countries – and do this with the help of the blockchain technology.
Eugene Wong, chairman of CrimsonLogic and GeTS, has high expectations on the future of the new platform: “We believe that our blockchain technology can help create greater trust amongst cross-border traders in ASEAN and along China’s Belt Road Initiative and Southern Transport Corridor. Trade volume between ASEAN and China would become the single largest transaction between two regions and we hope to facilitate this.”
The Open Trade Blockchain Platform seems to be a well-thought technological solution. However, the stakeholders of CrimsonLogic contribute strongly to the success of the project. IE Singapore which is the biggest shareholder works under the Ministry of Trade and Industry – which explains the governmental support of Open Trade Blockchain. The second stakeholder is also intriguing. It is PSA International, the largest shipping firm in Asia. This company is not only a big player on the market – it has already been involved into a partnership with IBM on studying the blockchain applications in the trade sphere. The combined support of these two companies has allowed CrimsonLogic to develop a promising product that can improve trade and supply chain for ASEAN and China’s Digital Silk Road.