Based on a technology report at cnbc.com, Wells Fargo and the Commonwealth Bank of Australia recently used blockchain – the technology that drives bitcoin – to process and execute a shipment of cotton from the U.S. to China, in a move that could provide a significant breakthrough for international trade.
According to the report, blockchain works like a huge, decentralized ledger for the digital currency bitcoin, recording every transaction and storing the information on a global tamper-proof network. Banks can use this technology in areas from remittances to securities exchanges to help cut costs and create a fraud-proof record of transactions without the need for third-party authorization.
Australia’s Brighann Cotton Marketing bought the shipment, which was going from Texas to Qingdao, China.
This process typically requires large amounts of paper work, back-and-forth communication between all parties via e-mail or fax, and the need to ensure that the records of all parties involved are up-to-date and the same.
