18. May 2016 – 18. May 2016
The system of “Letter of Credit” exists in its current form for well over a hundred years. By in-stalling independent parties (banks) as middle-men, it ensures that the seller delivers goods in the promised quantity, quality and time, and that the buyer pays the seller for the goods as contractually agreed. Due to the fact that buyers and sellers are typically far apart (possibly in different time zones), Letters of Credit are cumbersome to manage, and rather time con-suming.
The Blockchain technology shows promise to radically simplify this buyer-seller coordination problem.
In our presentation, we will illustrate the current state of the Letter of Credit system with real-world examples, and highlight typical pitfalls. Then, we will make the case for using Block-chain Technology in its context. We will explain how all processes at the base of Letter of Credit can be massively accelerated and simplified by using “Smart Contracts” and leverag-ing the “Internet of Things”.