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Trade finance is one of the first areas of application where blockchain technology could be widely used in finance. In international trade today, it often takes weeks to reach an agreement: contracts are placed and sent, logistics must be coordinated and supplies with costly guarantees must be deposited, and so on. All of this could be faster and cheaper with the blockchain.
We.trade trading platform, based on blockchain technology, announced today that ten companies in five countries have completed the first live transactions. Four banks have been involved in the trades, he said in a release.
Easier and cheaper … but uninstructive
We.trade simplifies commercial finance processes for companies, especially administration, tracking and protection of stores. The jubilation in an episode is huge: they have "launched for the first time in the world a platform based on blockchain (…) that greatly improves the customer experience in international trade". At the same time, more details are missing: the cost savings or efficiencies that businesses are currently doing right now will not be announced. Likewise, the platform does not have information on how the system works in detail. Even from a bad video on the homepage that does not show up. We.trade is based on IBM Blockchain Hyperledger Fabric, we learn.
The trading platform was founded by Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe Generale and Unicredit. Banks are also the ones who are currently most afraid (or parts of their business) to become obsolete by the blockchain
Erste Group has already conducted live transactions in Batavia
. Bank, holding something in a blockchain consortium, to get a foot in the door in this area. The Erste group, for example, is a member of Batavia and also announced Livetrades a long time ago. But the best thing about all blockchain applications that banks are working on is currently the hope behind that. These have not yet really touched the mbad market.
R3, which includes Raiffeisen Bank International (RBI) and many major global banks, wants to launch a product next week. However, according to media reports, R3 also does not believe that banks will soon begin to be used for commercial purposes.
So it remains to be seen how many banks and businesses actually bite we.trade. Ten major European banks reported having geographical coverage in eleven countries at the moment. Suppose that among them are the nine we.trade banks. Of course, in a later stage, the institutions that join the network will have to be found in the show.
Based on the fact that all transactions in a chain of blocks are always stored by all subscribers, the accuracy of a transaction no longer has to be confirmed by individual central offices such as trustee, lawyer or bank, so that the next step in a business venture is triggered. In the relatively tamper-resistant technology, trading participants can rely on the counterparty, complicated test processes can theoretically be eliminated. (EML)
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