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New Blockchain Solution Aimed at Supporting Dubai in Global Trade
Dubai Customs has turned to Blockchain Technology to improve their internal processes, while offering a concrete solution to companies involved in the supply chain vertical.
In his Press releaseDubai Customs said the launch of the blockchain solution is an attempt to digitize trade processes in the Emirates and the wider Gulf region. The solution is expected to help businesses track items in transit as promote transparency and reducing the bureaucracy traditionally associated with the supply chain process.
On the other hand, the government sees multiple benefits in the launch, apart from improving supply chain processes. For starters, Dubai Customs says the platform will be instrumental in speeding up the customs clearance process through smart contractssaving companies a fortune in time and expense.
With detailed description of items listed in distributed ledgers, customs officials believe that fraudulent cross-border activities and innocent mistakes will be minimal. Another benefit associated with blockchain for officials is improved compliance, while others point to increased levels of security as a result of decentralization.
In addition to the immediate benefits for customs processes, Dubai officials have their sights set on Transform Dubai in a smart city.
“This innovation reflects our vision of making Dubai a global hub for trade and logistics,” the announcement reads. “We believe that the adoption of modern technologies such as blockchain will significantly contribute to improving the business environment and strengthening Dubai’s position as a major hub for global trade.”
The city has done significant progress in advancing its smart city goals, leaning on artificial intelligence, digital assets and a host of emerging technologies. While the master plan appears to be making steady progress, government officials are investing a fortune in educating residents to provide talent for the sweeping changes in the emirate.
“This initiative represents a critical step towards a bright and spectacular future for trade and government services, ensuring the emirate continues its innovation and global leadership journey,” said Dubai Customs Director General Dr Abdullah Busnad.
Critics criticize the offer
Despite the forward-looking nature of the project, several skeptics have argued that a series of challenges could ruin the blockchain initiative. They revolve around the core of their arguments scalability problems that typically plague the blockchain during peak transaction periods.
Given the range of parties involved in custom processes, the spectrum of interoperability remains lurking in the shadows. Other issues associated with the project include implementation and management costs, potential data breaches, and energy consumption problems.
Watch: Blockchain-Based Supply Chain Traceability
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