When ordering parts to fix a car or buying ingredients to run a cafe, we’re typically so used to having a functional supply chain that we don’t think twice about it.
However, unfortunately, global supply chains today face a number of stressors that are putting these worldwide industries at risk. From weather-related disruptions to global conflicts in recent years, supply chains have been trying to bounce back from events.
In turn, delays and disruptions are having a knock-on effect on everything from construction and healthcare through to business and retail. This is because a 10-day disruption in a firm’s production leads to at least 300 days before its inventory is back to normal.
Furthermore, small and medium-sized enterprises (SMEs) account for 90% of businesses worldwide, however their participation in international trade remains limited. This is because operating within global supply chains and navigating the complexities is a much higher bar for startups and SMEs. This means they lose out on trading opportunities, while also creating an unbalanced supply chain that is over-reliant on a small number of larger suppliers.
One reason for this is the fact that the majority of supply chain processes still rely on paper-based documents for import and export processes. Given the vast nature of global trade and the many stakeholders, this ends up generating a huge number of documents each day that are also harder to track and verify.
Cutting-edge technologies and digital infrastructure have the potential to make it easier to participate in cross-border trade by giving SMEs the tools needed to trade securely and maintain regulatory compliance. In turn, this will help to make global supply chains more resilient in the face of external stressors as many more businesses unlock the ability to participate in trade.
This potential looks likely to become a reality in the near future thanks to a newly launched accelerator called XDC Labs that is focused on leveraging Web3 and blockchain technologies for global trade.
Making global trade processes digital
Crescite and XDC Labs this week announced a new global accelerator to fast-track the development of promising Web3 innovations that address the challenges in the global trade industry.
XDC Labs is looking to bring global trade into the digital age and help more SMEs and startups participate here. For example, something as simple as exporting a frying pan can require a four-page customs form. As a result, it’s estimated that global trade networks generate a staggering 4 billion documents each day.
Governments and businesses have long used electronic documents–but international trade has been a holdout. Cutting out complexity across global trade will help to improve resilience and over delays that leave important industries like healthcare and construction in a vulnerable state.
The U.K.’s Electronic Trade Documents Act of 2023 came into effect on September 20th, but progress in the future relies on the global uptake of an electronic trade system.
XDC Labs hopes to bring us closer to this goal by helping to develop the core digital infrastructure needed to deliver secure, traceable trade transactions using online blockchain ledgers.
A new accelerator program to transform global trade
XDC Labs is looking to make global trade more prosperous for more stakeholders around the world. To give innovation in this area a jump start, the newly launched accelerator is currently looking for 100 founders to participate in a range of tailored programs.
“This initiative could not be more important. Global trade is essential to the future of nations. Unstable, unreliable supply chains are a major risk that, if pushed past the breaking point, could see everything from healthcare to access to food under threat,” commented Edward Cullen, CEO of Crescite, one of the founding organizations behind the XDC Labs accelerator.
The XDC Labs Venture Studio stands as an incubator of cutting-edge innovation, fueling the growth of visionary startups set to reshape the future of global trade and revolutionizing the $28 trillion global trade industry.
This is Washington’s pioneering blockchain startup accelerator that ignites innovation, fostering disruptive solutions that will reshape the future of international commerce.
Featured photo of Edward Cullen
This article includes a partner of an Espacio portfolio company
