Blockchain Technology’s influence is growing by the day and even the traditional banks have understood that the technology is going to rule the future. Recently Italy based Unicredit completed their first commercial transaction on Blockchain, opening the gates for other firms and businesses to adopt the technology in their current system.
Unicredit made use of “we.trade” platform to allow the metal packaging manufacturer ASA Group to buy a tinplate game from its supplier, Steelforce using the blockchain platform which was earlier supposed to be done by KBC bank based in Belgium.
Luca Corsini, Head of Global Transaction Banking at UniCredit said,
“We Believe that over time the platform can help redefine trade relations between SMEs by removing the obstacles that typically make international transactions difficult and costly, with tangible benefits for our customers”
UniCredit made use of the smart contract to fulfill the payment, where the two parties involved in the transaction had predetermined the timing which was set in the smart contract. The money was held in the escrow which was released when the ASA group received the required package.
Due to the use of blockchain technology and smart contract, both the parties were satisfied and the process was not just completed in time, but also quite fast when compared to traditional banking systems.
More Business and Banks Are looking Towards Blockchain Space
With the blockchain technology proving its worth and finally getting out of the shadows of the cryptocurrency space, many big businesses and banks are looking towards it for an efficient and cost-effective cross border payment portal.
The impact of the blockchain in such a short period can only be compared to wildfire metaphorically. The technology is not just spreading its wings to various sectors and businesses, but also making a lasting impact which has turned many critiques into a fan.
As per a recent report by CISCO, blockchain technology is expected to capture at least 10% of the world’s gross domestic product. The feat is mind-boggling since the technology is relevantly new and is expected to make more progress given the interest of the community.
The recent use of blockchain platform to facilitate commercial transactions has opened the gates for other Italian businesses and the global community as well to add blockchain based services to their existing portfolio.