Blockchain and International Trade

Innovations in technology have the potential to enable and disrupt international commerce (e.g., online shopping and drone delivery services). Along with emerging technologies such as artificial intelligence and the Internet of Things, blockchain may change the conduct of international trade, including how it is financed, how companies manage supply chains, and how border officials vet imports. Congress may face questions about the potential benefits and risks of this new technology and whether, or how, blockchain should be regulated.

Blockchain is a distributed record-keeping system (each user can keep a copy of the records) that uses encryption to provide for auditable transactions. Using blockchain, each transaction is traceable to a user, each set of transactions is verifiable, and the data in the blockchain cannot be edited without user’s knowledge. These blockchain features allow two or more parties without a trusted relationship to engage in reliable transactions without relying on intermediaries or central authority (e.g., a bank or government).