Technology giant IBM has announced a partnership with Indian conglomerate and multinational Mahindra to develop blockchain solutions to revolutionize supply chain finance in the country.
The two companies aim to develop a cloud-based solution that is a notable departure from existing traditional banking protocols in India, to enable trade finance transactions from suppliers-to-manufacturers through a permissioned blockchain.
Market observers and researchers of blockchain applications in the financial industry frequently tout trade finance as a sector primed for blockchain disruption. If successful, a blockchain solution for small and mid-sized enterprises in India could have a telling impact in the way the innovation can streamline and fasten business transactions while reducing risks and errors.
Announced today, the IBM-Mahindra blockchain solution will fundamentally enable all parties involved in a supply chain finance solution to act on a singular shared ledger. The supplier and manufacturers will update their individual parts of the transactional process to contribute to a rounded transaction in a process that will ensure increased efficiency and transparency.
IBM elaborates on this with the example of