According to the Wall Street Journal, the International Business Machines Corp. (IBM) plans on launching one of the largest commercial use cases of blockchain technology this September. The company believes it can relieve millions associated with dispute costs and holding periods between clientele.
Commercial Grade Blockchain Will Save $100 Million
IBM Global’s Jerry Cuomo, vice president of blockchain technologies, said the new blockchain-based internal dispute resolution software could save partners $100 million in tied up capital due to disputes. By removing third party arbitration, it will relieve its financing unit from hassles involved with disputes including paperwork, suspended transactions, and unit deals between partners. IBM Global’s Jerry Cuomo explains how the blockchain implementation will save the company money:
The business unit deals with 4,000 suppliers, financing customers and partners who conduct about 3 million transactions per year, worth $44 billion. About 25,000 disputes arise annually over issues such as the wrong number of computer parts in an order or deliveries that go awry.
Cuomo says normally it takes an average of 44 days to resolve such issues. Furthermore, employees use roughly six to seven software applications to verify steps taken in the arrangement as well as having to call banks, financial institutions, and associated partners. IBM Global’s vice president of blockchain technologies said the use of distributed ledger technology records faster and more accurately than IBM’s traditional resources. Cuomo details that testing over the past few months has resulted in a ten day resolution period.
Blockchain: Open for Business
The launch of the new software will make IBM one of the largest corporations to enhance trade operations using blockchain technology. This coincides with the company’s push towards the fintech space with the launch of its Bluemix garages in San Francisco and the latest addition in New York City’s SoHo district. The innovative spaces are aimed at progressing blockchain, Internet of Things, and overall financial tech R&D programs.
As well as the new tech garage, IBM and Crédit Mutuel Arkéa Bank piloted blockchain identity program to enhance the digital landscape. With the new blockchain-based dispute resolution platform IBM says in time it will be selling the software to interested corporations. IBM has been spearheading blockchain technology and believes it can provide enterprise solutions for its clientele and an industry standard for the rest of the world.
As the company’s blockchain-dedicated website details, IBM’s “blockchain is open for business.” There is little technical detail concerning the latest release come this September, but it’s safe to say IBM has been diligently trying to get ahead in this new market.
What do you think about IBM releasing its blockchain dispute platform this September? Let us know in the comments below!
Images courtesy of Pixabay, IBM