A new blockchain-based trade finance platform has just launched in Russia. The platform known as Factorin has been developed on a private version of Ethereum and already has a major Russian retailer Dixy as its first client.
The system which has undergone 6 months in the pilot phase with 12,000 test transactions during the period has already commenced production with Dixy.
Dixy suppliers before now took at least two weeks to receive payments but with the new system, payments can be completed in one business day, according to Factorin co-founder Andrei Maklin. Already, Factorin has connected with two banks in Russia, Alfa Bank and Pervouralskbank and many factoring companies, Maklin said.
The platform connects works with several banks and settlement facilitators between retailers and multiple suppliers (factoring companies) on just one interface and is currently available for both mobile and desktop users worldwide.
Already, the platform has 20 nodes on it, 2 of which are full Ethereum nodes, Maklin said. The company is still working on adding three more. So far, Dixy is the first client and a major one – a supermarket chain that recorded $5 billion in revenue last year and holds 2 percent of Russia’s market.
Speaking on the quality of service provided by Factorin, Dixy’s chief financial officer, Julia Zhuvaga said:
“Tech visionaries like to thrill the public with the stories of the beautiful future, but in reality, top management in any company wants to see better results not in a couple of years but as soon as possible. This platform allows us to see the change here and now.”
Blockchain technology finally seems to be getting attention from the mainstream sectors and is evidently making life easier for those who use it.
The more efficient and cheaper platforms built on blockchain technology have proven to be much better than existing platforms and this is bound to spread. Factorin is considering expanding its service to cover more companies with different needs.