In a report from Kommersant, a Russian business newspaper, the collaborative effort between four different parties will change the way that blockchain is handled. Specifically, the partnership between Gaxprom Neft and Priorbank of Belarus (the Russian subsidiary of Raiffeisen Bank International) are declaring a guarantee on blockchain technology.
According to the report, the purpose of this guarantee was to allow four different parties to conduct a trade finance transaction. The four parties included were Raiffeisen, Gazprom Neft, Belarusian firm Mozyr Oil Refinery, Priorbank of Belarus. The Russian oil company retained Raiffeisen as their advising bank, though Priorbank of Belarus ultimately issued the bank guarantee with blockchain technology.
Raiffeisen Russia’s head of documentary transactions and trade finance, Tatyana Ivashkova, said, “Four nodes participated in the transaction, that is, all parties were fully connected to the platform.
Typically, an internal system would be used for the guarantee release, and the client would only know after the transaction has completed. However, blockchain technology ensures that the participants are able to see the documents at the time, tracking it through the entire process. Furthermore, the time spent processing is significantly shorter.
Raiffeisen has experience with testing blockchain already, though they previously were involved with an electronic mortgage. This transaction involved blockchain platform Masterchain, which was created by some of the biggest players in the market to involve a decentralized network with their data. Soon after, the bank announced their intention of collaborating with a state agency called Rosreestr, which collects information on the real estate industry for a smoother e-mortgage process.
Blockchain is being adapted for multiple users around the world. Just a day ago, CoinTelegraph wrote about multiple oil companies that are setting up a platform for energy commodity trading. This technology is ideal for trading, improving transparency in the industry and creating trust amongst new partners. Right now, the network includes ABN Amro Bank, ING Bank, Societe Generale Bank, and multiple trading houses. Their network is set to go into effect by the end of this month, specifically for the North Sea oil market.