Yep! I think that currently the root of the problem lies in the lack of trust between counterparties who dont know each other. The typical solution is a letter of credit or other bank guarantees, that is costly and that involves a daunting process. Typically:
- After negotiation, buyer and seller sign a contract.
- Buyer's bank supplies a credit letter to seller's bank, which guarantees seller will be paid whether certain conditions are met.
- Seller gives goods to a carrier and receives a bill of lading.
- Seller provides the bill of lading to its bank and receives the payment.
- Bank gives buyer the bill of lading, so that he can present it to carrier and receive goods.
My understanding is that the blockchain can really help here as smart contracts could be used to replace this time-consuming workflow process. And at a lower cost. How much could the process be sped up with a blockchain platform solution? And how much could a business save on average?