Dubai has quickly become a hub for blockchain innovation over the past few months. With the backing of the local government, there are a lot of opportunities waiting to be explored. One of the newest projects is known as Digital Silk Road, which is not connected to the dark web marketplace with which most cryptocurrency users are acquainted.
THE DIGITAL SILK ROAD IN A NUTSHELL
It is commendable to see Dubai take on blockchain-based ventures in such a prominent manner. With the help of the Dubai Chamber of Commerce and Industry, the Dubai Future Foundation has organized the Digital Silk Road project. This particular venture mainly focuses on using blockchain technology to eliminate key complexities and weaknesses found in the current global trading system.
Although the name “Digital Silk Road” sounds similar to “Silk Road“, the dark web marketplace, the two are not connected. Digital Silk Road has no ties to the dark web, nor does it have any connection to marketplaces or peer-to-peer trading. Even so, it is a project which could introduce a lot of positive changes moving forward.
To sum up the project, it’s meant to improve transparency of supply chains “through digital transformation and process automation”. It sounds like a few buzzwords thrown together at first, but there is a method to the madness in the case of the Digital Silk Road. This new project will allow entrepreneurs to enhance their capabilities, improve business transactions, and ultimately reduce the trade of counterfeit goods. That latter point is of great importance, as counterfeit goods have been a very big problem for quite some time now.
While reshaping the future of global trade will not happen overnight, blockchain technology can play a big role in this process. With an advanced and secure platform meant to overcome current trade barriers, the Dubai Future Foundation hopes to make a positive impact on this industry. It is also worth mentioning that this new venture is part of the Dubai 2021 plan, which primarily focuses on positioning the city as a major hub in the global economy.
The Dubai Chamber of Commerce and Industry CEO and President Hamad Buamim commented:
The Dubai 10X approach offers a way to overcome all the challenges and current constraints facing the trade sector by introducing a unique system. 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.
Under the hood, the Digital Silk Road is designed to track multilateral transactions, reduce transaction times, and offer digital authentication features. This will be done in an encrypted manner, while offering a fair degree of transparency at all times. Even so, it will be quite interesting to see how this concept plays out, as it will be up to individual companies and entrepreneurs to embrace this solution.