Open AccessBlockchain as a solution to the problem of illegal timber trade between Russia and China: SWOT analysis
Author(s) -
Arsenii Vilkov,
Guoshuang Tian
Publication year - 2019
Publication title -
international forestry review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 48
eISSN - 2053-7778
pISSN - 1465-5489
DOI - 10.1505/146554819827293231
Subject(s) - swot analysis , transparency (behavior) , business , china , blockchain , cryptocurrency , government (linguistics) , commerce , illegal logging , international trade , industrial organization , computer security , logging , forestry , marketing , computer science , linguistics , philosophy , political science , law , geography
Prolific illegal timber trade between Russia and China cannot be stemmed by present certification schemes and Russian governmental strategies. Blockchain could present a new technological opportunity, simultaneously addressing illegal logging, regulating timber trade and meeting the needs of environmentally-sensitive markets. SWOT analysis of blockchain applicability in Russian-Chinese timber trade is presented. Decentralisation based on smart contracts could ensure timber supply chain transparency through each log cryptographic encryption. However, it is considered complicated as cryptocurrency (on which trade depends) is beyond the legislative sphere of both countries and energy demands are enormous. Beyond cryptocurrency prohibition, huge businesses and governments cannot accept blockchain for international trade because of transparency and cost risks. Digitalisation through blockchain implementation could provide a highly transparent, non-editable system to handle decentralised big data characteristic of the forestry economy, realise Industry 4.0 and develop the "China-Mongolia-Russia" economic corridor. Fundamentally, a workable Russian-Chinese Government-Science-Business model must be cultivated for effective blockchain implementation.