Blockchain Technology Demonstrated in Crossborder Operations
A group of Japanese companies are starting a demonstration to verify the applicability of blockchain technology as a way to streamline and upgrade crossborder trade operations.
The participating companies will input information of real trade transactions using a blockchain-based application, by which a wide variety of documents, including trade agreements and logistics/insurance documents are digitized, recorded, and shared among participants. 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 crossborder trade transactions, discrepancies among related documents, and administrative costs. Further, looking to commercialization, the technology will be evaluated for its viability in crossborder trade business operations.
The participating companies are Sumitomo Mitsui Financial Group (SMFG), Sumitomo Mitsui Banking Corporation (SMBC), the Japan Research Institute (JRI), Mitsui & Co., Mitsui OSK Lines (MOL), Mitsui Sumitomo Insurance Company (MSI) and IBM Japan.
In the demonstration test, SMFG, SMBC, and JRI aim to use new information technologies proactively, thereby adapting to a fast-changing environment, and ultimately to become a more competitive and innovative financial group and continuously upgrade the quality of customer service. The demonstration test was planned with Silicon Valley Rep. Office. that conducts research on new technologies. Through the application of blockchain technology to the safe-keeping of legal information, SMFG is committed to adding value and offering innovative new financial products and services.
Mitsui & Co. provides trading services, offering safe and optimized delivery of goods and services desired by customers worldwide. In the demonstration test, the company aims to combine the experience and know-how gained from its long-standing global trading business with the cutting-edge blockchain technology, and achieve better productivity in trade transactions and gain new business opportunities.
MOL group is a leading global marine transportation operator. As a provider of integrated transportation services, the group, meeting diverse needs for transportation, has earned a global reputation for safety. MOL is expected to offer related expertise to the demonstration test, and aims to become the corporate group that customers think of first when they choose a logistics business partner, by drawing upon ICT technologies to enhance its services.
MSI’s business offers safety and security to resolve various social challenges. The company, through this trade platform, aims to provide services developed using advanced technologies, such as blockchain and IoT.
Seeking to develop various business applications that meet the business sector’s demand for high-level security, IBM participates in Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies hosted by The Linux Foundation. The demonstration test will use Hyperledger Fabric, a blockchain framework and one of the Hyperledger projects.
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