Through the technology of Bitcoin, International Business Machines (IBM) is helping farmers and other small businesses in third world and underdeveloped countries to take part in global Trade. Just recently IBM in partnership with Fintech start ups Stellar.org and kickEx Group made known this project and explained why and how they will go about including the positive expected result.
These companies involved plan to use IBM’s blockchain technology tocarry out financial transactions across borders and currencies — a process which is often prohibitively slow and costly for small business owners, particularly those present in underdeveloped areas and smaller or poor banking infrastructures.The project is focused on what Stellar calls “underdeveloped payment corridors” — countries like Samoa and Fiji, where financial policies, currencies, and economic instability make it difficult for international business money transactions.
To Stellar’s existing work on global blockchain transactions IBM is basically bring scale and bank patnership as well as services of KlickEx Groups, a liquidity provider to ensure a bigger international banks work with these under previlede regions.
This announcement is the newest amongst somany other projects IBM is working on using the blockchain technology. Early in the year IBM announced a collaboration with food distributors such as Walmart, Nestle which is targeted at eliminating the spread of food- borne illnesses through more thorough tracking of the supply chain, from the farm to the store.
One of the best parts to this innovation is the efficient quick and secure money exchange across borders without need for a middle man.
The technology was first introduced by an anonymous creator known as Satoshi Nakamoto in 2008 about same period of that year’s financial crisis. The technology entailed a way of exchange of money outside the control of big banks and governments and was called Cryptocurrency.
Mean while bitcoin is just one use of the different functions of blockchain technology. The technology behind it is quite the same and so it’s decentralized digital ledger. This means that every transaction that happens on the blockchain is recorded across multiple computer servers. It’s considered to be extremely transparent and nearly fraud-proof.
From a businesses’ perspective, the new blockchain product can be used to manage both the legal and financial credibility of a transaction —starting from the establishing the terms of a contract, to managing documentation, putting up collateral, obtaining letters of credit, and finalizing terms with immediate payment, according to IBM.
“For example, in the future, the new IBM network could make it possible for a farmer in Samoa to enter into a trade contract with a buyer in Indonesia,” IBM said in a press release. This payment system is already at work in 12 different regions across the Pacific Islands, Australia, New Zealand, and the UK.