Ornua – formerly known as the Irish Dairy Board – has written its name in the history books by becoming the first organisation in the world to complete a trade transaction using blockchain.
At an unprecedented pace, companies and organisations are moving towards blockchain as the future means of conducting business, offering accuracy and security on major transactions in a fraction of a second.
In Ireland, established financial institutions have begun moving towards the technology. In April, Bank of Ireland announced it was to begin experimenting with blockchain technology, while Deloitte opened a new blockchain office in Dublin in May.
Now, in what appears to be a world first, Ornua has announced that, following a partnership with Barclays Bank, it has completed a trade transaction using blockchain.
The credit transaction between Ornua and the Seychelles Trading Company is the first to have trade documentation handled on a platform developed by the fintech company Wave.
Cheeses and dairy chain
Using distributed ledgers, a blockchain transaction ensures that all parties can transparently transfer titles, and transmit shipping documents and other original trade documentation, through a secure, decentralised network, eliminating many of the current inefficiencies in international trade.
Engaged in international trade among 110 countries, Ornua was selected for the pilot transaction due to its expansive export coverage and what Barclays saw as a strong focus on innovation.
“Moving to paperless trade would be hugely beneficial in supporting the supply chain, through reduced costs, error-free documentation, and fast transfer of original documents to our customers worldwide,” said David O’Rourke, group trade finance manager at Ornua.
Dairy cow image via Shutterstock