Irish dairy producer Ornua became the first company in the world, which held a real bargain using the technology of branched-chain registries blockchain (blockchain), according to Reuters. Payment by letter of credit for $100 million in export party cheese and butter Irish cooperative at the Seychelles trading company has provided to British Bank Barclays and Israeli start-up Wave.
As explained by the Agency, to conduct transactions on the platform Wave took less than four hours. Traditionally, this process takes from 7 to 10 days due to processing difficulties related documentation, including the exchange of original documents via courier services, but cryptographic protection and verification of the blockchain allowed to carry all transactions over the Internet without the need for third party verification.
System block allows you to speed up trading operations, to reduce costs and the risk of forgery, believe in Barclays. “We proved the applicability of this technology, our customer Ornua already asked when they can spend the next similar transaction. This proves how convenient for the client was the entire process”, — quotes Agency the head of the group Barclays trade and working capital Bahasa Baghdadi.
The banker is confident that the blockchain will be able to solve one of the main problems in world trade — giant document management, necessary for conducting transactions between multiple organizations. According to him, that is why the Bank was interested in cooperation with Wave in the field of application of this technology, “which will save time and money for our clients, and in the future — to transform trade Finance in the interest of companies around the world.” “I work in the industry for more than twenty years, and I never even dreamed of the decision by which the document will be carried out around the world electronically in minutes rather than days by couriers, transport and other things” — shared-Baghdadi impressions of the blockchain.
Barclays said that tends to attract other banks to support the implementation of the system Wave based on the fact that this may escalate into a large-scale modernization of commercial documentation, writes Finextra. However, Reuters notes, many experts believe that widespread use of blockchain technology will be included only in five to ten years.
Wave is not the only developer of platforms for carrying out transactions using this technology. In August, investment banks Bank of America Merrill Lynch, HSBC and the development of information and communications Singapore has announced that it has successfully demonstrated the use of the blockchain to replace paper letters of credit in trade Finance operations.
According to the company Juniper Research, which deals with the study of Telecom market in the first half of 2016 the investment in the development associated with the introduction of blockchain technology and bitcoin was close to $300 million.