Distributed ledger technology (DLT)1 in trade is usually used for two primary purposes: 1) track-and-trace, to enhance transparency on how goods are being processed and 2) the digitalization of trade processes.
Track-and-trace itself has three main purposes. First, it can be used to increase transparency for customers and build trust. This is done by providing the customer with insight into DLT-verified records of the steps that a particular product took to reach their hands. Second, it can be used to prove the authenticity of particular products, combating the trade of counterfeit goods along the way. Third, it can be used by large corporations to quickly track and identify tainted products, allowing the corporations to identify potential hazards and resolve them quickly.
While the track-and-trace portion of DLT in trade is a fruitful and important aspect of the broader industry, it is not the focus of this publication. Instead this publication, similar to the previous edition, will be primarily focused on the digitalization side of DLT in trade, examining how it can be used in pursuit of the digitization of trade documentation, digitalization of trade processes, and the exchange of trade data.
Source: Deepesh Patel (TFG), Emmanuelle Ganne (WTO)