Friday, April 14, 2017

Did You Know? Blockchain + Cheese

Did you know that the first international commercial transaction to use the blockchain as a verification mechanism was for cheese?

Back in September, Irish cheese cooperative Ornua (purveyors of Kerrygold for those hip to the know here in Wisconsin), sold a $100,000 letter of credit for cheese and butter to Seychelles Trading Company using the blockchain.

How did it work? The blockchain is a secure and inherently authenticated record-keeping mechanism. Thus, much of the lengthy contract due diligence of confirming who the parties are is short-cut merely by using the system. Second, now that the parties are authenticated, secure documents can be transferred digitally. Finally, the transaction is posted to the blockchain ensuring transparency and confirmation of the transaction.

[S]uch transactions typically involve a complicated paper trail that requires international courier services, is vulnerable to document fraud, and can take as long as a month to be completed. ... [U]sing blockchain technology, [] a process that normally takes between seven and 10 days [was cut] to less than four hours

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