There is good news for those who believe in blockchain technology as Russian S7 Airlines and Alfa Bank have signed a deal. There is however, mixed rea
There is good news for those who believe in blockchain technology as Russian S7 Airlines and Alfa Bank have signed a deal. There is however, mixed reaction about blockchain and bitcoin technology. In fact the deal witnessed the practical use of blockchain technology for effecting letter of credit settlement. This is as per the statement of Deloitte which donned the role of advisor for the deal. Smart contracts were made use of as far as opening and execution of letters of credits were concerned. The main objective was to check on the reliability, capability of smartcoin operations.
It Might Reduce Transaction Costs
It is believed that the use of this technology will help in reducing cost of transactions and also improve the information exchange reliability and quality. Though many such experiments are going on in the world, it is being tried out in Russia for the first time. It would be pertinent to mention here that while the government is testing blockchian which also is known as distributed ledger technology, it is at the same time planning to ban bitcoin to ruble exchanges.
Things Are Moving Forward
It would be pertinent to mention that in spite of political uncertainty, quite a few Russian banks are for blockchain applications. In July a group of Russian Banks formed a consortium whose main objective was to focus on blockchain application. There are many banks including QIWI, Khaty-Mansiysk Otrkitie Bank, B&N Bank, MDM Bank, Tinkoff Bank, Accenture and Alfa Bank. It would be pertinent to mention that over 60 banks have become a part of this consortium.
It Is Catching Up In Popularity
The blockchain technology is gaining in popularity with tech savvy companies according to Artem Tolkatchev, Director, and Legal Services for technology projects at Deloitte. It is supposed to be legally on a sound wicket and according to Dmitry Kudelkin, the transaction will help to understand as to how technology could improve business processes and document flow efficiency. Further cooperation with Alfa Bank is expected in this area.