companies team up with IBM on blockchain project
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[February 07, 2017]
(Reuters) - Dubai, one of the world’s largest trading hubs, has linked
up with IBM to launch a scheme using blockchain computing technology to
process transactions and keep track of goods being shipped, IBM said on
The initiative will provide real-time information about the state of
goods and the status of their shipment to Dubai's customs and trade
agencies and companies involved in the trade process, IBM said.
Dubai, which registered 647 billion dirhams ($176 billion) of non-oil
trade in the first half of 2016, has cemented itself as one of the
largest re-export centers for goods flowing between Asia and the Middle
East and Africa.
IBM said it was also working with companies including du, a United Arab
Emirates-based telecommunications firm, Dubai's largest bank Emirates
NBD, Spanish lender Banco Santander, Dubai-based logistics firm Aramex
and an unidentified airline on the scheme.
Blockchain, which originates from digital currency bitcoin, works as an
electronic transaction processing and record keeping system that allows
all parties to track information through a secure network, with no need
for third-party verification
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FILE PHOTO - A
woman passes by the IBM offices in New York City, U.S. on October
17, 2016. REUTERS/Brendan McDermid/File Photo
Proponents think it could make transactions faster and safer, and have a wide
range of applications.
The Dubai deal follows a plan announced in February 2016 by the government there
to become a center of blockchain.
said the two banks taking part in the project would use blockchain for trade
finance transactions involved in the scheme.
Both banks already have links with the technology. Emirates NBD said in October
it was working with India's ICICI on a pilot project to use blockchain for
global remittances and trade finance.
Banco Santander has been involved in various blockchain projects, but in
November opted out of the latest fund-raising for blockchain consortium R3 CEV
after being an original participant in the consortium.
(Reporting by Tom Arnold; Editing by Mark Potter)
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