ICICI to use Blockchain Technology
ICICI is the first bank to use Blockchain Technology to transfer funds. They have partnered with Steller to use their network to power transactions both in domestic market and international cross border transactions. They are the first ones in India and among first ones in the world who have adopted this bitcoin based Blockchain Technology.
To brief you about Steller, it is a common financial platform, non profit payment protocol, which is designed to be open and accessible to anyone. As such it is reviewable and open source. Their mission is to give freedom to individuals to send, receive or even save money, in currencies of their choice, in a way as easy as they send an email. It removes all hassles and even the transaction fees are drastically reduced as compared to conventional fee norms.
With Blockchain Technology ICICI will be able to carry business with new customers seamlessly. Steller provides platform to conduct business faster, cheaper and with lower error rates. Even vulnerability to cyber threats will be much lower in this case.
ICICI Bank will be able to exchange messages and authenticate remittance transaction messages along with exchange of the international trade documents such as Invoices, Bill of Lading, Pos and Insurance related documents electronically on blockchain in real time.
Blockchain Technology– the core technology behind Bitcoins
Bitcoins, the most popular digital currency, is based on Blockchain technology. This technology creates an open ledger of all the transactions. This ledger will therefore act as proof of such transactions or trades. Everytime a transaction is completed, it is added to the blockchain ledger in the form of a “Block”. These blocks gets added to the last block added in the form of a chain in linear and chronological order. This blockchain ledger will be accessible to all the computers in the network.
With this blockchain technology, ICICI will be able to complete an export transaction within few minutes, which conventionally used to take about three days.
Steller has not only tied up with ICICI, but has partnered with three more companies. Other companies are Coins.ph which is a Philippines based mobile financial service provider; Flutterwave – a pan-African financial platform; and Tempo Money Transfer — a French remittance service provider.
Overall Blockchain technology is going to change the whole world and the way we live. Not just ICICI, many more banks such Axis and Kodak are on their way to use this technology. Blockchain technology is slowly picking up and becoming backbone of the fourth industrial revolution. This blockchain technology is also finding use in other areas such as Healthcare, Real Estate etc.