Blockchain is changing the way information is stored while also radically altering access to information for everyone. The advancements in blockchain technologies indicate that accessing information will become much easier for anyone with internet access. This technology appears to be a step further in the democratization of data access than the internet. Millions of computers owned by people all over the world will be able to access millions of smart contracts, including trade agreements, articles, art pieces, and a variety of other information and documents.

One of the most fundamental assumptions of the perfect competition market theory is equal access to information. Economists argue that perfect competition is only a model for measuring competition and cannot be observed in real life. Blockchain could cause a dramatic shift in competition by making it easier for everyone to access complete information. This situation is expected to drastically alter international trade and trading transactions. Access to information for everyone can help people improve their income and living standards through trade. It also has the potential to reduce trade transaction costs because storing information using blockchain technology may result in new trading tools that can replace traditional trade transactions that require lengthy legal processes.

What More Democratic Trade Means

Being able to access information means being more competitive in the marketplace. Nowadays, SMEs face a lack of sufficient information to enter a new market or gain access to a market in another country. Most SMEs lack the capacity to export their products to another country, owing to a lack of knowledge of the cost structures and important facts influencing market mechanisms in these markets. They can hire consulting firms to help them enter these markets, but information in international trade can be highly expensive.

Finally, international trade necessitates the development of trust between trading parties as well as the fulfillment of numerous financial and bureaucratic requirements. These conditions can result in extremely high transaction costs, which many SMEs cannot afford. However, using smart contracts in international trade and storing trade data on blockchain networks may reduce the cost of SMEs participating in international trade.

Equal Opportunity in International and Economic Development

When SMEs begin to benefit from blockchain in international trade and are able to reach markets they could not previously reach, they will have a faster growth opportunity. Because SMEs are important parts of their communities, when they make more money, they can provide better and more job opportunities in their area. Similarly, developing SMEs means developing regions because production factors and resources can be used more efficiently and people can earn more money. As a result, improving SMEs by giving them access to new markets and making them more competitive can be a driving force in regional economic development. Finally, blockchain technologies appear to have the potential to usher in a new era of trade and economic development.

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