Chinese CITIC Bank has developed a system for the settlement of credit based on blockchain technology, ETH News reported.
Called ‘BCLC’, the network enhances the efficiency of credit operations by transmitting messages in a few seconds. According to Sina News, the system has been developed in collaboration with Minsheng Bank.
On the first day, a 100 million letter of credit transaction was carried out on the platform. Based on the Hyperledger Fabric, BCLC transforms the issuance and delivery of the letter of credit into electronic format, thereby saving time and delivery cost.
“The BCLC system is the first consortium blockchain that connects two national business bank of similar size. With the decentralization, consensus and traceability mechanism of blockchain, the two banks are free from issues like data storage location, identity identification, data-tampering etc. The launch of BCLC is a landmark on the development of blockchain applications”, Sina News reported (translated by 8BTC).
BCLC connects buyers with banks on the network to carry out tasks including issuing, notifying, accepting, and paying with full transparency. It allows buyers and sellers to track the letter of credit traffic by following each node and avoid errors and fraud.
CITIC bank said that it will continue to improve the blockchain-based system and expand the scope of blockchain applications by boosting research into emerging technology.
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