What is a blockchain's primary function in international trade?

The primary function of a blockchain in international trade is to serve as a secure digital ledger for transparent transactions. Blockchain technology enables the recording of transactions in a way that is immutable and transparent, meaning that once a transaction is added to the blockchain, it cannot be altered or deleted. This provides a reliable audit trail for all transactions, helping to reduce fraud and increase trust among parties involved in international trade.

Moreover, because blockchain operates in a decentralized manner, it does not rely on a central authority. This enhances security and minimizes the risk of single points of failure. In the context of international trade, where multiple stakeholders, including suppliers, manufacturers, logistics providers, and customers, are often involved, the transparency and traceability afforded by blockchain can significantly streamline operations, reduce disputes, and improve overall efficiency in the supply chain.

The other options do not align with the core functionalities of blockchain in this context. For instance, while social networking among businesses, taxation methods, and artificial intelligence applications in logistics are important concepts related to international trade, they do not encapsulate the unique capabilities that blockchain technology offers in terms of secure and transparent transaction management.