UN Trade Body Examines Blockchain's Potential in Supply Chains

A United Nations body that facilitates global trade is examining blockchain and smart contracts to see if they could play a role in its mission.

With developing standards for trade facilitation and supply chain automation already a core part of its remit, UN/CEFACT focuses on the "Smart contract, electronic notary and decentralised process coordination" features of blockchain, rather than its role in powering cryptocurrencies.

Within the supply chain industry, a number of types of data can be effectively transmitted over blockchains, according to the paper, including insurance, invoicing, consignment and shipping, and bills of lading.

While the organization can see "Clear value and use cases" for blockchain technology, it sees issues too.

"Blockchain technology does not solve the interoperability problem that UN/CEFACT standards have always supported," the paper says.

Further, blockchain introduces more electronic data that must be shared across supply chain participants.

The papers authors also see a potential for the organization to help clarify this potential deluge of data, saying that there is "An opportunity for UN/CEFACT to leverage its existing semantic standards."

While blockchain, as well as other technologies like IoT, can contribute to increased supply chain efficiency, the paper suggests that more work is needed to fully ascertain their potential in facilitating trade mechanisms.

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