Business consulting and software service provider GFT has launched a prototype app for commodities using blockchain technology.
The new commodities consensus computing app demonstrated how to track physical commodities assets using a distributed ledger business model, in a bid to create more control over physical inventories, helping to prevent fraud in the commodities market.
The app is designed to reduce the opportunity for fraud by identifying ownership and location of physical commodities early in the trading process. The technology can also improve management of the data and attributes associated with each asset parcel.
According to GFT, the technology could bring significant value to commodities market participants, especially if providing proof of ownership and location are important to their operations.
The app was developed by GFT’s ongoing ‘Project Jupiter’, which supports disruptive business ideas and puts forward solutions around blockchain technology. The project produces prototypes of potential blockchain solutions, demonstrating opportunities for market evolution.
It was also supported by GFT’s think-tank create@GFT, which analyses and reviews new ideas and concepts.
Commodities specialists reviewed the front-to-back processes for bringing commodities to market, including mining and refining, warrant trading and settlement, and identified an opportunity for blockchain to be used to transform the current business model.
Nick Weisfeld, joint head of GFT’s UK data practice says: “GFT recognises that, whilst blockchain has the potential to transform how people do business and co-operate with one another, such improvements cannot be made with technology alone.”
“The current blockchain phenomenon has encouraged traditional industries with rigid and established legacy processes to look at how they do business though a new lens, promoting some truly disruptive thinking. At GFT, we encourage all consultants working on active client engagements to explore their ideas and to not be limited by traditional modes of operation or convention.”
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