Trade finance has been the backbone of the world economy for many years, but recently, due to globalization and the growing use of the Internet, it is thriving at a greater pace . The volume of goods and services traded across borders has increased, which has led to an increase in banks and companies lending money for them. The whole process of this distributive trade not only requires merchant and seller, but also requires a large number of intermediaries. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay On the other hand, process participants are vulnerable to commercial and business risks that emerge from different sets of factors that include delayed processes, different regulations in different geographies, less fluidity in documentation and payments, hurdles in logistics. Banks that finance such companies also expose themselves to risks and thus increase costs which ultimately lead to unfavorable contractual conditions. This dark cloud of inefficiencies, risks and legal issues hangs over the trade finance market and is seriously impacting global trade. With the advent of Blockchain in recent times, banks and companies are incorporating millions to reap the benefits of this technology. Blockchain, which began as the underlying process of Bitcoin, now has the potential to streamline tasks by processing data in real time, reducing logistical hurdles and also nearly eliminating any charges from third-party intermediaries. Thanks to its security, distributed ledger technology and open consensus system, Blockchain can almost revolutionize the trade finance market. Time, being a very important resource in the financial market, can be drastically reduced by the use of this technology. With real-time review of required documents, Blockchain can greatly reduce the time it takes to complete the entire process of shipping and receiving goods. The entire documentation process by banks and other companies, which takes almost a week, will be reduced to a few seconds when participants upload their documents and the checking will be done in real time. The encrypted security it provides helps in recording and recording all business transactions. maintained without any fear of theft. This technology creates a tamper-proof database as the data once entered cannot be modified later as any new record inserted will contain a hash code of the previous block and therefore it becomes very difficult to modify the previously entered data. You can also implement a private key encrypted database for added security that can only be accessed by specific personnel. Blockchain will help combat fraudulent practices by keeping a check on double entry of the same goods, preventing consumers from falsely claiming poor quality of goods. The consensus mechanism of this technology will deprive each individual entity of full control over the process, which in turn will eliminate any kind of risk of manipulation. Transaction fees charged by banks and other merchant sites will be completely canceled and thus there will be more favorable contract costs which help both the merchant and the seller. Blockchain would also play a crucial role in advancing the activities and processes that form the backend of trade finance such as identity authentication, contract management including financial, legal, insurance and other regulatory bodies. Keep updated.