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.
Paul Taylor Author
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