Blockchain consortium R3 is preparing to launch its crucial Corda pilot scheme, in a move that will be seen as hugely significant for the group.
It comes just days after the confirmation of the conclusion of their latest funding round, which reached $100 million from a combination of new and existing partners.
Japanese financial titan Mizuho is at the forefront of developing what would be the first successful implementation on R3’s Corda system, and is being considered a crucial acid test for the technology and its potential usefulness in practice.
Designed as a solution for trade finance arrangements across the supply chain, it is hoped that the technology will make it easier to detect and eliminate fraud, as well as making it easier for firms to move toward paperless administration.
Professional services firm Cognizant is working in partnership with Mizuho to deliver the project, helping develop features which will allow for digital transmission of invoices, bills of lading and other key documents in the trade finance process.
According to Lata Varghese of Cognizant, the decision to build on R3’s Corda platform will help improve turnaround times and increase efficiency for those who rely on trade finance arrangements.
“This will increase trade finance process efficiencies by substantially shortening letters of credit issuance time, reducing trade paperwork processing costs and removing delivery delays by enabling faster creation and secure transfer of digital trade documents between participants.”
Mizuho is also exploring a range of other projects around distributed ledger technology, including some which would see bitcoin earn its place at the core of securities exchange. With the R3 implementation set to be the biggest to date, few would bet against a successful rollout in the near future.
Financial services is suggested to be one of the main industry beneficiaries from distributed ledger technology, with the blockchain holding significant potential in compliance, transactional and backroom functions.
Now, with Mizuho at the front line of Corda development, its pilot is expected to be closely watched by industry commentators, with a view to identifying opportunities for similar developments in the near future.