One of the most favorable industries for blockchain technology is commercial financing. Many of the world’s largest banks are devoting time to their research and development.
Thanks to a consortium of 71 global financial leaders, R3CEV, much has been discovered about the potential uses of blockchain technology.
Since 2016, R3 has run several pilot tests in the market to complement its research. They will continue to improve these strategies until they are ready to fully enter the market.
So what are some of your potential use findings? This is the future of commercial financing with blockchain technology companies.
Monitor status and conditions in real time
One of the members of R3, CBA, is one of the main collaborators in the research of blockchain technology. They are currently carrying out 3 different projects to analyze the use of the blockchain.
They are doing a test with exporters who ship cotton. A humidity monitor is placed inside the container, which is linked to IoT and GPS.
This monitor allows consumers to track their shipments with the status in real time. In addition, they are able to assess the status of their product as it transits.
Other national blockchain technology companies are running pilots, similar to this study. In Singapore, Hellosent is conducting similar tests. However, they are studying the import of French wine.
Eliminate unpaid settlements
A growing problem for cereal farmers is a financial loss due to commercial insolvency. It is estimated that $ 50 million was lost in 2014 due to this activity.
A farmer takes approximately 4 to 6 weeks to receive payment for his shipments. In this case, conflicts often arise between farmers and buyers due to payment complications (failure to pay the right amount, late payment, etc.).
The Australian start-up, Full Profile, has taken the issue into its own hands.
Its blockchain platform allows farmers to now receive automatic payment on grain delivery. This will significantly reduce the risk of disputes between farmers and buyers.
Once the Full Profile application is fully functional in a home environment, it will be extended to foreign trade.
Using blockchain technology can also be beneficial in reducing financial losses and risk. In a later development, you will be able to digitize sales and legal agreements.
Trade financing is a difficult industry to manage, relying heavily on settlements and contracts. Today, most of these agreements are managed in the old fashioned way: paper copies.
Blockchain technology will eliminate the need for this paper-based system. This ultimately reduces the risk of financial loss, as documents are often lost, mishandled, or soiled.
Electronic documentation can be tracked much more efficiently. In addition, it eliminates the need for a third-party verification system.
Interested in learning more about Blockchain technology companies?
Blockchain technology creates transparency in financial trade between buyers and sellers. From the time an order is placed until payment is made, the blockchain is able to simplify the business process.
Do you want to enter the world of international trade? You are in the right place. It would be great to know your thoughts and comments.