How the advent of blockchain revolutionize the way businesses operate internationally?

One of the major applications of blockchain technology is international payments that are not only quick but are also secure by nature for businesses that ponder international trade. It is because the particular technology is said to provide international businesses with a transaction medium that is bounded with tamper-proof log of sensitive activity when a business is making transactions for resources with suppliers or from other companies that offer B2B services (Awwad et al., 2018). The technology is said to completely automate the transaction process that helps in boosting a company performance in the international markets, which further can be used as a source of competitive edge and branding among reputed players within respective industries. The particular application from the technology is being widely used by numerous banking brands due to the trust and faith upon on the technology that was first utilised by Banco Santander to develop and launch the world’s first blockchain-based money transfer service known as “Santander One Pay FX” in 2018 (Valkanov, 2018). The service is said to be supported with the application of Ripple’s xCurrent system that allows customers to make same-day or next-day international money transfer all across the globe.

Blockchain also has great significance across financial and capital markets as well since the adoption of the technology is said to improve capital markets with three of the major benefits. These benefits are faster clearing and financial settlement, overall operational improvement due to effective allocation of financial resources within organisational premises, and consolidated audit trails within businesses (Ganne, 2018). The blockchain technology is said have developed a way of managing equity swap transaction effective through the integration of distributed ledger network that allows both sides of equity swap to be synchronised throughout their lifecycle. Blockchain technology allows has significance and application within the international HRM processes as well. The technology can be used to strengthen and secure the transfer as well as storage of sensitive data that are personal and financial such as an employee’s personal credentials and salary details respectively (Fachrunnisa and Hussain, 2020). When HR teams within companies are said to credit wages to employees throughout the organisational premises, the adoption and application of blockchain technology for that purpose is said to make the operation faster as well as secure with least aspect of data leakage or theft during the process.

The concept and advancement seen across the particular technology has widen the scope of international HRM practices across the aspect of advanced hiring and recruitment processes within companies that equip employees from international talent pools. It is expected that not every employee that are being expected to be hired within a new workplace, can be found transparent during the recruitment and selection process. Thus, the application of the particular technology is said to verify job qualifications and conduct authentic background checks of every employee during its application for job in a company (Lai, 2020). It is possible since the technology offer companies with a feature of shared database that has been explained above, which is not limited only for financial transactions and process but also has implication to verify candidate’s performance and professional experience. The application of the technology is not limited across recruitment and selection practices of human resource management within workplace since companies can use the technology also across vendor tracking, contractor payments, and advanced as well as during streamlined payrolls (Chhetri, 2022). The technology replaces all sort of manual works, which are witnessed during wage distribution to employees within the workplace through the data automation process that also had been explained above.

Team management and task automation is also found to become effective and advanced due to the integration of blockchain technology across project management system that are being preferred by companies. The use of cloud server or rather tools that are composed with Bigdata analytics are said to be fuelled with the particular blockchain technology that comes in handy for teams and project managers for tasks that are of both longer and shorter durations (Fridgen et al., 2018). Trade finance before the advent of blockchain technology was found to be slow and a painful process for businesses since the trade finance process was found to interrupt business operations and make liquidity harder to manage effectively (Michailidis, 2018). However, due to the features of shared database and quick data processing as well as management, blockchain has been found to revolutionise implication of trade finance within companies, eliminating the aspect of slower process that was existent in the past, as mentioned above. The application of the technology is also found to be existent across financial governance aspects of a company as well. Blockchain technology can be used for effective regulatory compliance and financial audits. It is because the transaction and transfer of every data based upon the particular technology is most secured compared to other mediums that are existing in the market as well as well-known by businesses and humankind.

In terms of financial activities and processes that are adopted within a firm, most of them are said to be threatened by a negative risk that is well known as money laundering. The technology and its wide application within businesses allows companies to keep them secure and protected from such money laundering aspects that are frequent within firms of large sizes. One of the most famous system or rather concept that had been developed due to the particular technology is “Know Your Customer” that is abbreviated as “KYC”. Most of the companies are said to build relation with their clients by building trust when they ask them to fill up the KYC forms that are stored in digital servers and clouds, secured with strong encryption provided by the end of blockchain technology (Kapsoulis et al., 2020). When a customer is found to approach a bank loan purposes, they are first asked to be indulged in activity of filling up the KYC, even before they are being asked regarding the purpose of the loan that customers are seeking from the respective banks.