Bidsonline has embraced blockchain technology! A bit of background: Bidsonline owns 50% of a company auctioning flowers in Kenya. The company runs Dutch auctions for rose growers in Kenya. Roses are shipped mainly to Europe by airfreight.
Being a new company trying to mange risk and cash flow we requested letters of credit only to find that it takes 3/5 days to issue one, so we asked for payment in advance: that too can take 3/5 days! To keep roses fresh they need to be picked and despatched within 2 to 3 days – too quick for our bankers!
Like many people I was struggling to understand blockchain technology and then I read about Ethereum smart contracts and realised this was the solution to our problem automated letters of credit using smart contracts. So excited by this revelation I immediately commissioned our development team to begin a pilot.
We worked through Christmas, 12 hours a day and finally on Thursday 18th January it all came together – a working automated letter of credit. So we have formed FreshChain Pty Ltd. This company will develop and promote automated letters of credit and syndicated finance for the perishable trade.