Blockchain Technology Applications
The fintech industry has continued to grow for a while, and the growth can be attributed to the emergence of innovative technologies. Blockchain, Artificial Intelligence, Cloud Computing, Big Data, Cryptocurrency, etc. are contributing immensely to the underlying functionalities of fintech companies, hence, we see new fintech companies and solutions springing up in different parts of the world. The adoption of the blockchain technology for different use cases is indicative of the fact that blockchain has unique features that can effectively support the operations of each of the use cases where they have been applied.
Large Retail Company Goes Blockchain
In a recent development, Russia saw the launch of a finance platform that is ethereum-based, and Dixy, the third largest retail company in Russia has been identified as a major participant. Before the launch, the project went through 6 months of testing in order to identify possible flaws that could affect the project both on the short and long run. After dealing with any available flaws, the project was launched, and on the 5th of June, 2019, it was announced that the system would be integrated into a popular retail chain in Russia called ‘Dixy’.
The trade finance platform was developed on a version of the Ethereum blockchain that is private, and it will make it possible for companies supplying Dixy to get their payments within a day, as opposed to waiting for two weeks. Furthermore, the platform is in partnership with different banks and companies that propagate the settlements that take place between multiple suppliers and the retailer, all taking place on one interface.
Some of the first participants of the project include Pervouralskbank and Alfa bank, and several other factoring companies in Russia. It may interest you to know that the platform had been made available for users on both mobile and desktop interfaces. Between December and June, the platform was used to test 12,000 transactions, and they could deduce from the tests that the use of the platform has a positive impact on the settlement time, by reducing it significantly.
According to the Factorin, the Russian blockchain-based startup behind the platform, at the moment, the network has about 20 nodes, and two of the nodes are full-fledged and functional on the participants’ servers, three of the nodes are being set up, while the rest of the nodes are functioning in the cloud.
The first major client that Factorin has is Dixy, and the team behind the idea is optimistic that Dixy would not be the last major client they will have. According to Factorin, working with Dixy was proof of big companies beginning to adopt the use of emerging technologies and innovations for business. In the near future, there are preparations to ensure that the platform becomes scaled and made to be adopted for different types of business.
It is interesting to see that a lot of companies are beginning to see just how good blockchain is, and are beginning to adopt the technology for use in different industries and sectors.