Dubai Chamber of Commerce and Industry, in partnership with the Dubai Future Foundation, has unveiled the Digital Silk Road project, which seeks to use blockchain technology to eliminate key weaknesses in the global trading system.
The project aims to further increase the transparency of supply chains through digital transformation and comprehensive process automation, the Chamber said in a statement.
It added that the Digital Silk Road will support entrepreneurs in enhancing their innovative capabilities, accelerate business transactions, increase security and reduce trade in counterfeit goods, and provide reliable information to parties anywhere and anytime to enrich the experience of customers.
The project is one among several Dubai 10X initiatives launched by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, with the mission of placing Dubai 10 years ahead of other cities of the world.
The Digital Silk Road project aims to reshape the global trading system through a secure, advanced and environmentally friendly platform using blockchain technology that helps overcome current trade barriers such as high costs, lack of transparency, diversification of legislation and lack of security in business transactions.
Dubai Customs is a key partner while the Chamber said it is also working with global partners, including entities from the Netherlands and the United States, to implement the initiative with the aim of starting the project in the next eight months.
"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 Hamad Buamim, president and 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."
He added: "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 platform will help to track multilateral transactions, reduce transaction time and enable digital authentication in an encrypted and secure manner. It enables devices to interact directly with each other and improves the knowledge of assets and liabilities, as well as the possibility of creating applications such as smart contracts, digital portfolios, safe digital transfer of assets and information.
Buamim said this will help reduce other disadvantages such as lack of transparency, security, manual errors, increased paper usage and time spent on procedures.
The Digital Silk Road will also help enhance customer service, especially when it comes to fast delivery, availability and diversity of goods, and contributes to reducing the cost of trade through the use of new business processes.
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