The biggest bank in Australia has taken advantage of distributed leger technology, smart contracts, and the Internet of Things (IoT) to successfully execute a trade deal involving 17 tons of almonds.
Successful Implementation of Blockchain Technology
Commonwealth Bank of Australia (CBA) showcased an innovative blockchain-based platform, intended to facilitate tracking of shipments from the point of packaging to the point of delivery. The technology is underpinned by smart contracts as well as IoT technology, allowing for real-time tracking of important factors such as current location of the package, temperature and humidity within the containers, and others of the kind.
Furthermore, the technology allowed for a greater level of transparency, as well as efficiency in terms of the condition, location, and the authentication of the goods which are the object of transportation.
Speaking on the matter, Chris Scougall, Managing Director of Industrials and Logistics in Client Coverage at CBA, noted:
Our blockchain-enabled global trade platform experiment brought to life the idea of a modern global supply chain that is agile, efficient and transparent. We believe that blockchain can help our partners reduce the burden of administration on their businesses and enable them to deliver best-in-class services to their customers.
Blockchain to Solve Serious Issues in the Shipping Industry
The successful blockchain trade experiment which involved the shipping of 17 tons of almonds from Mildura to Hamburg had CBA partnering up with agriculture company Olam Orchards Australia Pty Ltd, the Pacific National, the port landlord of the Port of Melbourne, as well as hardware and software providers LX Group.
According to the Supply Chain Manager of Olam Orchards, Emma Roberts, blockchain technology manages to handle major logistic inefficiencies and hurdles, noting:
Trade inefficiency can be extremely detrimental to our business. It is vital that as an industry, we look at emerging technology for ways to enhance the supply chain to develop a more transparent and efficient platform. This project has shown that through collaboration from all parts of the supply chain that this can be achieved.
The platform in question took advantage of Ethereum’s main network, but it is supposedly going to be set up on its own private blockchain.
It seems that Australia is truly making serious advances in the field of DLT as, earlier in May, the country’s Digital Transformation Agency dedicated AU$700,000 specifically to blockchain research.
What do you think of CBA’s blockchain-based shipping platform? Don’t hesitate to let us know in the comments below!
Images courtesy of Shutterstock and Pixabay.
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Author: Georgi Georgiev