IBM explores blockchain for logistics industry

dubai — As part of Dubai’s plans to execute all its transactions on a blockchain by 2020, IBM has announced a blockchain initiative that will see it working with leading businesses including Emirates NBD, du, Aramex and Banco Santander.

As part of the initiative, IBM will collaborate with Dubai Customs, Dubai Trade and its IT provider Dutech to explore the use of blockchain for a trade finance and logistics solution for the import and re-export process of goods in and out of Dubai.

The blockchain solution transmits shipment data, allowing stakeholders to receive real-time information about the state of goods and status of shipments.

The solution aims to replace paper-based contracts with smart contracts; and integrates all the trade process stakeholders from the ordering stage, in which the importer obtains a letter of credit from their bank, through the intermediary stages of freight and shipping, and ending with customs and payment.

“IBM believes that blockchain will do for transactions what the Internet did for information. Dubai is at the forefront of adopting this transformative technology as government agencies and businesses realise the need to have a shared secured ledger that establishes accountability and transparency while streamlining business processes,” said Amr Refaat, GM of IBM Middle East and Pakistan.

— rohma@khaleejtimes.com