From ABC to XYZ – All You Need to Know About Trade Finance

In this tech-savvy era, where every other thing is given that Midas touch of technology,

From ABC to XYZ – All You Need to Know About Trade Finance

Did you know that over 80% of the world trade relies on trade finance?

In this tech-savvy era, where every other thing is given that Midas touch of technology, trade finance has bloomed by that technological touch too. Heavily reliant on paper, phone calls, emails, and many more, trade finance had been on a quieter side of finance.

But over recent years, FinTech has shaken up the ‘Sleeping World’ of trade finance by making the finance simpler, faster, and much efficient. Negotiating financial terms, securing letters of credits, and obtaining invoice financing are now just a one-click away.

Around 60% of financial institutions view FinTech firms as potential partners.

And what has made all this possible?

Well, the answer lies in the ABC & XYZ. So, let’s dig in and figure that out.

A- Artificial Intelligence

Through the analogs, natural language processing, and chatbots, Artificial Intelligence has brought a revolution in the current framework of finance. Machine Learning or ML which is another subset of AI has made the processes much faster and error-free than humans. AI has been constantly providing predictive analysis for problems, discovering new opportunities in the market, understanding trading partner’s requirements, and making electronic configuration of trading documents. Therefore, it’s won’t be wrong to say that Artificial Intelligence has been a boon for trade finance.

Chatbots will save banks $7.3 billion by 2023.

B- Blockchain

Blockchain has majorly focused on reducing cost, boosting speed, and elevating the transparency of cross-border trade. The reason for this being Distributed Ledger Technology or DLT which has paved the foundation for digitalization in trade finance. Owing to this, sellers get their payment in time and can make effective use of their working capitals. Not just that but the back-office automation in drafting documents slash overloads, chances for frauds, and hoax trading are reduced and a new global trading utopia has been created.

Over 77% of financial service

incumbents are expected to adopt blockchain in FinTech for in-product processes or systems by 2020.

 

 

C- Corda

In general, Corda is an open-source blockchain platform built and released by R3 in 2016. And since its development, R3 has brought over 70 companies like Marco Polo, Voltron to bring trade finance onto the blockchain. There has been a significant reduction in transaction times, mitigation of risks, and has made trade finance much easier. The prototype has integrated a standard user interface and with further enhancement, it would provide wider access to financing techniques. Owing to these benefits, we at WebMob have a focused team of certified Corda specialists, who tirelessly handle our projects.

X- xRapid

xRapid is a cryptocurrency-driven payment product by Ripple. The product provides on-demand liquidity to financial institutions for international payments without having a correspondent relationship from both ends. The transactions can happen in minutes and at a much lower cost than traditional methods. And all of this is possible through XRP- a cryptocurrency by Ripple which acts as the bridge between fiat currencies. Currently, being complementary to Swift, xRapid with the help of modern technologies is sure to replace its competitor.

Y- You

Yes. None other than you yourself as a customer are equally a part of trade finance. There would be no trading without customers and bank-led solutions are already long gone now! The entire FinTech industry has become customer-centric with the technological transformations taking place around. For each of our projects, our trade finance platforms are highly customer-oriented and flexible.

Over 77% of traditional financial institutions plan to increase their focus on innovations to boost customer retention.

Z- Generation Z

The natural ability of Generation Z to evolve with the latest technology and work thoroughly with it has made a positive impact on the trade finance sector. Gen Z has more access to credit but they do not take much of it, and this is the most dynamic difference between them and the older generations. They are more likely to take risks as compared to Millennials and are

significantly better at handling their finances. Eventually, Gen Z finances will continue to shape economic trends and society is sure to benefit from their new ideas and lifestyles.

It just doesn’t end here!

Around the globe, financial institutions, banks, and FinTech startups are constantly been working on new tools and applications to bring a major transformation in trade finance. They do say ‘Blockchain is the future’, but the fragmented nature of global trade hasn’t been much support in favor of this digital transformation!

The trade finance is set to reach newer heights, especially with the incoming of scalable FinTech platforms. And with us, you can get that vital push in the industry.

Why should you choose us?

A- We utilize the latest AI techniques for trade finance.

B- When it comes to trade finance platforms, Blockchain is our strentgh.

C- Not just Corda, but we use Hyperledger too for flexible trade finance platforms.

X- Along with xRapid, we deal with xCurrent too.

Y- As a customer, you and your finances matter to us.

Z- Our Gen Z team is always at your service.

So, why waste time just wondering when you can have ABC and XYZ of the trade finance at your fingertips with WebMob?

Feel free to join us, now.

Manually Configuring/Deploying Corda 4 on Network

As promised earlier, It’s time to show the world how we setup

As promised earlier, It’s time to show the world how we setup Corda 4. The prerequisites are same. In fact, setting up Corda 4 is the same as Corda 3 plus bit code and stuff. So for Corda 3 setup, follow my previous post and let’s head for bit code and stuff. Just so we are clear, whenever I say earlier or previous, I’m referring to my previous post here.

Let’s edit some configurations!

Before that, please tell me you have AWS instances ready in accordance with my previous tutorial. Done? cool!

Alright, so the goal here is, what you run locally should run on server and should be able to discover other nodes and communicate with them which were deployed and bootstrapped in same way. After we did exact same setup as mentioned in previous post, you need to change wee bit of configurations in clients/build.gradle. Wherever you see --config.rpc.host=localhost, config.rpc.port=PORT_NUMBER and config.server.port=PORT_NUMBER; replace rpc.host=localhost with rpc.host=0.0.0.0and rpc.port to corresponding RPC port of your node which you configured in build.gradle of your PROJECT_ROOT and finally the server.port. Don’t forget to change Client’s host as well.

The node configuration part is now over. Now let’s do some bashing!

The missing Webserver

You might have noticed that corda-webserver.jar file is missing. Remember that message they used to flash back in Corda 3? The node webserver is for testing purposes only and will be removed soon. Well, they just did so. No worries though. Some tweaks and it’ll work just fine. Apparently, Corda now uses Tomcat Server embedded as RPC client to the nodes. I’ll leave that to you as how to connect with webserver of your choice. For this how-to guide however, I’ll use the one which everybody gets out of the box(Tomcat Server).

So help me, how do you run server for you node? By running task, right? say ./gradlew runBankAServer. For the ones who are wondering, the server tasks are defined in clients/build.gradle. Now, you might have been successful in running corda.jar as a system service. But must have been searching for a way to do so for webserver. How do we do that when we don’t have a runnable jar at the first place?

Here’s little recipe to run your gradle tasks as a service. Let’s go back old school(init.d).

  1. Put builds and gradle scripts on the server. Basically everything minus code, in simple terms.
  2. Create a init.d script like this
#!/bin/bashcd /project/root/directory/;
case "$1" in
start)
   ./gradlew RUNNER_TASK &
   echo $!>/var/run/webserver.pid
   ;;
stop)
   kill `cat /var/run/webserver.pid`
   rm /var/run/webserver.pid
   ;;
restart)
   $0 stop
   $0 start
   ;;
status)
   if [ -e /var/run/webserver.pid ]; then
      echo webserver is running, pid=`cat /var/run/webserver.pid`
   else
      echo webserver is NOT running
      exit 1
   fi
   ;;
*)
   echo "Usage: $0 {start|stop|status|restart}"
esacexit 0;

Replace RUNNER_TASK with the task name corresponding to your node. e.g. ./gradlew runBankAServer. Then save it as /etc/init.d/corda-webserver

3. sudo systemctl daemon-reload then sudo systemctl enable --now corda-webserver

4. sudo systemctl start corda-webserver

Boom! 🔥 Easy, right?

Let me know if you have corrections/suggestions/comments. Give me thousand claps if I’ve helped you somehow. Thanks!