It is a highly complex process to get oil from the ground and into cars.
Copyright 2018 The Associated Press. All rights reserved.
A consortium of commodities traders, banks and the world’s largest goods inspection company have joined forces to launch a blockchain platform in Switzerland, which is intended to ease the administrative burden of shifting oil, grain and other products around the world.
This content was published on
2 minutes
I write about the rapidly evolving artificial intelligence technology and its possible impacts on society.
Originally from England, I spent some time at the BBC in London before moving to Switzerland to join SWI swissinfo.ch.
The Komgo venture will be based in Geneva, which is home to many of the world’s best-known commodities trading companies and is one of the most important global hubs for the industry.
Commodities trading has long been held up as one of the more promising sectors for blockchain technology. This is because the shipment of goods across the world requires constant monitoring by multiple parties and involves complex financing measures.
Blockchain acts like an interactive database, controlled and updated by its members rather than a central authority. It also has a built-in function for users to jointly validate transactions which cannot be altered once agreed upon.
Swiss-based companies, such as Gunvor, Mercuria and inspections outfit SGS were named as part of the consortium on Tuesday. The group also includes Shell and a variety of banks such as Citigroup, BNP Paribas and Société Générale that specialise in the financing of such trades.
The platform will initially launch in November with two options: the first to standardise and facilitate the Know Your Customer (KYC) process while the second product will allow users to digitally and securely submit letters of credit to finance deals.
“The potential that distributed ledger technologies (DLT) have in transforming the commodities sector is clear,” said Komgo’s Chief Technology Officer Toon Leijtens in a statement. “We can now achieve a long-term ambition to improve security and operational efficiency in the commodity trade finance sector.”
The Ethereum-based platform was co-developed by blockchain software specialists ConsenSys.
Popular Stories
More
Life & Aging
Zurich: how the world capital of housing shortages is tackling the problem
Living longer: What do you think about the longevity trend?
The longevity market is booming thanks in part to advances in the science of ageing. What do you think of the idea of significantly extending human lifespan?
Swiss cantons spared duty to create new traveller transit sites
This content was published on
Swiss cantons will no longer be formally obliged by the government to create new transit sites for the travelling community.
Swiss politicians bemoan limited access to EU treaty details
This content was published on
Protests that only a few Swiss parliamentarians will be able to read the contents of a new agreement negotiated with the EU.
This content was published on
For the first time, most Swiss residents favour withdrawing their pension pot as a lump-sum over regular annuity payments.
This content was published on
The cost of buying a home in Switzerland rose by 4.1% year-on-year in the last quarter and by 0.7% compared to the previous three months.
Landslide threatened Swiss village of Brienz faces many more evacuations
This content was published on
The population of the Swiss village of Brienz/Brinzauls isn warned to expect more landslide evacuations in the coming years.
This content was published on
Swiss International Air Lines will avoid Pakistani airspace until further notice due to rising tension between India and Pakistan.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Inside a Swiss blockchain factory
This content was published on
Blockchain is not just a platform for bitcoin. IBM researchers in Switzerland are churning out a number of different use cases for the technology.
This content was published on
The town of Zug has launched a trial blockchain voting system that could be rolled out to cover public votes in future years.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.