A consortium made up of some of Japan’s largest corporations will demonstrate the applicability of blockchain technology as a way to streamline and upgrade cross-border trade operations.
Made up of companies such as IBM Japan and global shipping operator MOL Group, the transport-oriented consortium will input information of trade transactions, using a blockchain-based application. Considered one of the most secure means of data sharing, the companies will share a variety of documents, including trade agreements and logistics/insurance documents among participants.
In launching this program, the companies are setting in motion one of the largest logistics-based blockchain tests, one that could yield important results in the years ahead. Supply chains are notoriously insecure, given the number of companies involved in any given shipment, and by securing the data and providing privileged access to verified parties, blockchain eliminates the potential for fraud and theft.
“By comparing against current operations, the test is intended to verify the effectiveness of blockchain technology for enhancing security and reducing the time required to settle cross-border trade transactions, discrepancies among related documents and administrative costs,” MOL Group stated. The shipping company also said that, “looking to commercialization, the technology will be evaluated for its viability in cross-border trade business operations.”