BANK of America Merrill Lynch, HSBC and the Infocomm Development Authority of Singapore (IDA) announced on Wednesday that they have developed a prototype solution that could change the way businesses around the world trade with one another.
Based on blockchain technology, the solution digitises the sharing of information among exporters, importers and their respective banks, making trading transactions more efficient, secure and transparent.
In simple terms, blockchains, which were developed to keep track of Bitcoin transactions, are similar to Excel spreadsheets. The difference is that these “ledgers” accept inputs from different parties and can be changed only when there is a consensus among the group running the blockchain. This, potentially, makes them more secure and does away with the need for a central authority clearing or approving the transactions.
For more on this story visit the following link: Consortium develops prototype blockchain application for banks
Source: Business Times