Dubai Chamber of Commerce and Industry (DCCI) is developing a new trading platform, the Digital Silk Road project.
The Digital Silk Road is intended to create a blockchain-based digital platform for international trade which will improve transparency and efficiency of many aspects of the trading transaction and processes.
The project potentially will bring a wide range of benefits to international trading processes, such as enabling tracking and authentication of transactions throughout the supply, increased visibility and efficiency in processing, reductions in transaction time and paperwork, and improved security and trust.
The platform will also form the basis for other digital solutions such as smart contracts, digital portfolios, safe digital transfer of assets and enhanced. Information.
The initiative is being developed DCCI in partnership with Dubai Future Foundation as a Dubai 10X initiative, part of Dubai government's plans to put itself ten years ahead of other governments. Dubai Customs is a key partner in the project, and DCCI says it is working with commercial partners in the US and Holland.
The Digital Silk Road is a digital platform using blockchain technology which will be open to traders (i.e. importers, exporters and re-exporters). The platform ensures that all transactions are transparent, secure and paperless, while it provides all parties with end-to-end visibility of a container's progress throughout the supply chain.
The platform allows for distributed and real-time multi-party tracking, digital ‘bills of lading' and letters of credit, machine-to-machine interactions, and better visibility of assets and liabilities. Smart contracts, digital wallets and secure digital asset and information transfer are accessed via the platform which help create a seamless process across the value chain.
For example, once an exporter readies their products for shipment, the shipping information would be added at this time to the blockchain. The platform would then confirm the transaction and execute a smart contract releasing the shipment. After this happens, the container is loaded onto the ship, delivered to the destination port and then cleared by customs. Once the importer receives the shipment, they sign electronically and this information is automatically relayed back to the blockchain.
Once the Digital Silk Road is up and running, the benefits of the new platform will be far reaching as it is expected to increase global trade, facilitate faster and cost-effective transactions, eliminate manual errors, boost transparency and security and build confidence within the trading sector.
"The Dubai 10X approach offers a way to overcome all the challenges and current constraints facing the trade sector by introducing a unique system," said HE Hamad Buamim, President & CEO of Dubai Chambers of Commerce and Industry. "We have been able to develop a project that is aligned with the vision of the initiative and meets Dubai's need for a platform that facilitates more cost-efficient, safer and faster trading. We can avoid all obstacles and unnecessary procedures and enhance our role as a trading chamber by using the latest technologies such as blockchain.
"Dubai is well known for being a record breaking city where we strive to overcome the most difficult challenges across different circumstances. We believe that the Digital Silk Road will be a competitive project that will achieve the best records and rewrite the history of world trade. The emirate enjoys a strategic location that links traditional trade routes and has an advanced logistics infrastructure that enhances its position in the global trading system," Buamim added.