LONDON - (Bywire News) The development is a positive move towards enterprise adoption for the EOSIO blockchain. ConsolFreight is collaborating with EOS Dublin and commissioning Europechain. EOS Dublin’s CEO Sharif Bouktila is a co-founder of Europechain which has built a GDPR compliant blockchain using EOSIO software.
The POC project, titled “Trade Forward” also has support from Telefonica and its Kite internet of things (IoT) connectivity platform, and there is further collaboration with the Florida Blockchain Foundation.
The POC is investigating blockchain to enable trade finance transactions for international logistics operations, as per SeaNews reporting. It will track the movement of goods across international borders with trade finance provided by an independent freight forwarder instead of finance provided by traditional banks. Blockchain and its smart contract technology, combined with IoT, will secure and track transactions to reduce risk. ConsolFreight CEO Ernesto Villa says:
“In our model, the cargo is examined and approved at final destination before the funds are released from the escrow account. This is radically different from traditional finance in the form of line of credits where payment is made even in the case of goods becoming lost, damaged or even stolen.”
Villa says when payments in shipping are not released without approval “better, fairer, and swifter financial recompense,” is achieved when a problem occurs.
ConsolFreight has chosen blockchain and Europechain’s EOSIO software utilising platform for compliance, immutability, speed, zero costs transactions, and security. Europechain is also designed for the European market and GDPR compliance, where many other blockchains are potentially not compliant with Europe’s new data protection regulations. Villa says:
“We chose Europechain to protect our clients working in Europe. As a global operator we needed to offer a solution that is compliant with GDPR as well as a registered business with registered offices. This is critical to business.”
Europechain co-founder Bouktila says he welcomes the opportunity to trial the EOS blockchain in a real-world case and that:
“Freight Forwarders want an easy to use, fail proof system. We are offering them just that – and at a much-reduced cost. Technology, notable EOSIO blockchain, is solving the issue of expensive, inflexible and problematic trade finance.”
The POC technology combines the use of traditional application programming interfaces (APIs) with smart contracts. According to a ConsolFreight press release, the Trade Forward POC will provide “liquidity” and “new revenue streams,” and is a new model of collaboration between insurers, financiers, and logistics companies. It will bring better financial inclusion for SMEs, as well as providing transparency, streamlining data exchange and administrative processes and mitigating risks.
A recent first TradeForward shipment was conducted by freight company Tech Cargo in North America and further shipments are planned to “enable non-traditional trade finance” in Africa.
The use of EOSIO software in such a project demonstrates the blockchain’s growing reputation as a platform for enterprise as well as DApp development, and its potential ability to compete with and perhaps one day surpass the likes of Ethereum and Hyperledger. EOS and EOSIO have some issues to iron out but so far the positive momentum for the software and its creator’s Block.one is very encouraging.
(Written by Melanie Kramer, edited by Michael O'Sullivan)