Wells Fargo ,Commonwealth Bank and Brighann Cotton Pioneer Landmark Blockchain Trade Transaction

Trading firm Brighann Cotton and the Commonwealth Bank of Australia, Wells Fargo & Co. collaborated with each other regarding the shipment of 88 bales of cotton worth $35,000 from Houston to the port of Qingdao. The focus of the collaboration is not the value of the goods but the technology they leveraged to ensure hassle-free and transparent shipment of goods.

The leading bank and the trading firm leveraged Blockchain to do away with the pain points and cumbersome processes associated the traditional global finance system. With a Blockchain powered solution, electronic contract gets updated when upon unloading of cotton bales, port staff scans the bales, which is followed by transfer of ownership and allowing payment release. This becomes possible as the distributed ledger technology ensures storage and encryption of contract parameters. This ensures that all the parties are working in a synchronized way and no individual can tamper with it without seeking validation from other contracts.

Various stages of the transaction are coded into a smart contract, which automatically gets when certain parameters are met without any human intervention.