TRADE-Chain, a permissioned “global trade-finance” blockchain for the world’s banks and financial institutions has been launched by Primechain Technologies Private Limited.
TRADE-Chain is built on Hyperledger Sawtooth and enables the issuance and sharing of letters of credit in a secure and confidential manner.
Speaking at the launch, Shinam Arora, CEO, Primechain said “TRADE-Chain can reduce the time taken for the exchange of export documentation from the current 7 to 10 days to less than a day”. She added “TRADE-Chain will enhance transparency, security and synergy and bring efficiency to trade finance, ensure cost effectiveness, quicker turnaround and unlock liquidity for businesses”.
TRADE-Chain features a completely API driven system that can easily be integrated with legacy systems. It enables real-time supervision by the regulators and ensures data privacy using strong encryption.
A letter of credit is like a promissory note that represents an obligation taken on by a bank to make a payment once certain criteria are met – once the terms are completed and confirmed, the bank will transfer the funds. Simply put, a letter of credit ensures that the payment will be made as long as the services are performed.
Example: An Indian exporter receives an order from an American importer. The exporter is not sure about the importer’s ability and willingness to pay once the order is delivered. The exporter requests for a letter of credit from the importer. The importer then applies for a letter of credit from its bank (where it has adequate funds or credit line). Once the goods are shipped, the bank pays the exporter subject to fulfilment of relevant terms and conditions.
Letters of credit are crucial in international trade due to the distance involved and potentially differing laws in the countries of the businesses involved.
About Hyperledger Sawtooth
TRADE-Chain is built on Hyperledger Sawtooth. Hyperledger Sawtooth is an enterprise blockchain platform for building distributed ledger applications and networks. The design philosophy targets keeping ledgers distributed and making smart contracts safe, particularly for enterprise use.
Sawtooth simplifies blockchain application development by separating the core system from the application domain. Application developers can specify the business rules appropriate for their application, using the language of their choice, without needing to know the underlying design of the core system.
Sawtooth is also highly modular. This modularity enables enterprises and consortia to make policy decisions that they are best equipped to make. Sawtooth’s core design allows applications to choose the transaction rules, permissioning, and consensus algorithms that support their unique business needs.
Sawtooth is an open source project under the Hyperledger umbrella.
About Primechain Technologies
Primechain Technologies is a blockchain startup that operates the 37-member BankChain community and also maintains “Blockchain Security Controls”, the world’s first security controls and recommendations for blockchain implementations.
For details, email Sahil Malik on firstname.lastname@example.org
Primechain Technologies Pvt. Ltd.
410, Supreme Headquarters,
Near Audi Showroom,
Pune – 411045 (INDIA)