Brazil is to trial a new project involving blockchain that it hopes could streamline its customs processes.
According to contxto.com, the country's Receita Federal is launching bCONNECT to see if the technology can assist with security, identity verification and cost management.
In particular, the governing body is keen to ensure the integrity of any information shared concerning customs and exportation is not tampered with, and to verify the identities of those inputting information to the platform.
Only Authorized Economic Operators will be able to access the system and share information with other registered users.
It was reported back in May 2019 that Brazil was hoping to use blockchain to manage commerce between it and nations in the Mercosur agreement, but nothing came to fruition.
Now, although bCONNECT is likely to be in pilot phase for some time, Receita Federal is sure to be hoping blockchain technology can make the sharing of customs information faster, safer and altogether more efficient.
Blockchain was officially defined in 2016 as "an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value".
Essentially, it refers to a type of data structure that can identify and track transactions across a network of computers, resulting in information similar to that on a spreadsheet. Importantly though, it can be regularly and independently updated.
Blockchain has frequently been highlighted as having the potential to redefine and revolutionise trade, possibly improving interactions between businesses all over the world.
A 2018 World Trade Organization report said that despite more needing to be done to join up the various innovations taking place in blockchain, it "could well become the future of trade infrastructure and the biggest disruptor to the shipping industry and to international trade since the invention of the container".
The document went on to suggest it may lead to trillions of dollars in increased trade by 2030.
