IBM Tests Smart Contract Prototype With Mitsubishi UFJ

Multinational technology company IBM has recently announced a blockchain collaboration with the Bank of Tokyo-Mitsubishi UFJ (BTMU). As part of this partnership, the two plan to research the execution of contracts between companies using blockchain technology.

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Blockchain-Based Automated Agreements Between Both Companies

The two firms plan on piloting distributed ledger concepts to automate transactions between each other.

The companies say this is one of the first projects to utilize the Hyperledger Project architecture. The blockchain facilitates real-time contracts using the IBM Cloud. The prototype purportedly uses smart contracts to improve efficiency and accountability of agreements “multi-party business interactions.”

Mr. Motoi Mitsuishi, Deputy Chief Executive Officer of BTMU Asia & Oceania said:

Blockchain technology has the potential to change not only the financial world, but also other areas of the business world, leading to improved efficiency of the end-to-end business process.

BTMU Will Utilize the Prototype Next Year

BTMU plans on using the protocol to manage contracts in 2017. Additionally, both firms will monitor the delivery and utilization of equipment with a sensor connected to the blockchain. The companies state this will automate the invoicing and payment processing between the firms.

Mr. Mitsuishi says they are embarking on this mission to exploit the potential of distributed ledgers. BTMU is pleased with the R&D efforts by IBM Global Business Services and believes the giant tech firm will bring blockchain applications to fruition.

IBM has steadily expanded its blockchain services and capabilities to many clients. BTMU says the company understands “what it takes to make blockchain ready for business.”

IBM Says With the Hyperledger Fabric, Blockchains Will Be Accessible to All

Industry leaders have been enamored by blockchain technology as of late. The blockchain streamlines business relations faster, adds transparency, and has immutable aspects in some designs. Many companies are on the fast track to harness distributed ledger resources to better their businesses.

“IBM continues to invest billions of dollars into research on emerging technologies that hold transformative potential for our clients. Blockchain will reinvent complex multi-party and contract-based business models, especially in banking and financial services,” said Bridget van Kralingen of IBM. The senior vice president, of IBM’s Industry Platforms, van Kralingen, adds:

This expands our expertise in helping clients identify the right projects and build out blockchain solutions to solve day-to-day business problems more effectively. We are delighted to be expanding the scope of our partnership with BTMU with this blockchain initiative.

Through open source contributions within the Hyperledger infrastructure and Bluemix, both companies believe this is advancing the science of blockchains. IBM says it wants to remove the complexity and make this technology accessible to everyone. The tech firm claims through the use of distributed ledgers financial services, supply chains, IoT, risk management, digital rights management and health care services will be transformed.

What do you think about IBM and BTMU’s collaboration? Let us know in the comments below.

Source: Yahoo Finance

Images via Shutterstock, and Pixabay.

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