Banks And Energy Groups Support Global Blockchain Technology Platforms

Global blockchain technology seems to mark the beginning of the fourth industrial revolution as all sectors are slowly deviating towards this digital transformation. Several worlds leading banks and energy traders are looking forward to launching two new blockchain powered platforms replacing the old trade finance industry foundations.

According to Financial Times, it is stated that financial institutions like Société Générale, ING, ABN Amro and, Citigroup along with energy groups such as Royal Dutch Shell and, Mercuria and Gunvor and supporting global blockchain technology by unveiling two new platforms. The market leaders are investing in blockchain ledger in the hopes of a better and efficient system which is faster, secure and cheaper. Blockchain technology helps in digitizing letters of credit, contracts, invoices, and paperwork which are currently sent by emails, post or fax.

Souleima Baddi, Chief Executive of Komgo, a blockchain based platform stated that this new technology is the solution of the existing needs of key participants in commodity trade. The prominent feature of this platform is digitization customer identity documents and issuing of electronic letters of credit.

The fundamental trade format still relies on the exchange of physical document but there is a significant delay which results in high cost. Also, this practice has an increased risk of fraud and theft. Banks are playing a major role in this by adopting blockchain within their systems which will effectively reduce both cost and time.

Blockchain Technology And Banking

Global blockchain technology is foreseen as a major transformation for the banking system. Several banks have already implemented this platform in their system which is gaining popularity in cross-border remittance.

Neha Narula, director of the Media Lab’s Digital Currency Initiative stated that banks can consider using global blockchain technology for reducing the time of a transaction or may issue a digital currency, but everything still would pass through banking channel. (Via Wired)

The blockchain bandwagon is not yet joined by everyone as of now.

 

 

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