Blockchain Empowers Risk Mitigation and Management in Digital Trade Processes

Abstract

As information technology gradually empowers traditional trade processes, the development of digital trade in new forms, especially the hot topic of innovative combination of “blockchain + digital finance”, requires attention. This paper aims to study how information technology can assist in legalizing digital trade processes, enabling trade entities to avoid trade risks, reduce transaction costs, and enhance their willingness to trade; how blockchain technology can be integrated into legal frameworks, and how it can be incorporated into policies. Applying blockchain technology to asset evaluation, credit evaluation, and information monitoring can greatly benefit the efficiency and security of digital trade processes.