Singaporean Companies Explore Blockchain Applications
Pacific International Lines, PSA International and IBM Singapore have signed an MOU to trial blockchain-based supply chain technologies.
Blockchain is a decentralised ledger technology used by a business network to securely exchange digital or physical assets. Each member of the network is granted access to an up-to-date copy of this encrypted ledger so they can read, write and validate transactions. Once a transaction is validated using a consensus process, it is instantly committed to all ledgers in the network.
The net result is faster, private, confidential and auditable business-to-business interactions among suppliers, distributors, financial institutions, regulators or anyone wishing to make a secure exchange. Blockchain creates a permanent, digitised chain of transactions that are grouped in blocks and cannot be altered.
The three companies are evaluating the technology's potential to achieve better security, efficiency and transparency in regional supply chains as well as connections to trade finance solutions that can facilitate faster approval and fraud prevention.
IBM plans to leverage the Hyperledger Fabric platform, its Supply Chain Business Network, and expertise from the IBM Center for Blockchain Innovation in Singapore to pioneer projects with the potential for widespread impact across industries in China and Southeast Asia.
Tan Chong Meng, Group CEO of PSA, said, “A more transparent, secure and robust certification system and document flow will benefit the whole supply chain as well as have enormous potential for application in sectors such as food, pharmaceutical and trade finance.
“Across the global movement of goods and cargo, many activities continue to operate in silos. Blockchain has the potential to reduce inefficiencies and gaps within the supply chain, promote more cost-efficient transactions and facilitate the continued growth in world trade.”
IBM and Maersk are planning to digitize and simplify global trade using blockchain technology, and the Hong Kong-based company 300cubits aims to partially replace U.S. dollars in the container shipping industry with a token soon to be launched on Ethereum - an open-source, public, blockchain-based platform.