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DLT will revolutionize not only Finance but also International Trade


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1 hour ago, KarmaCoverage said:

I have been noticing this for a long time, even with people who I know have invested directly in Ripple the company, seem to refuse to even mention Ripple/xrp in media.

They always speak generically about "crypto" and the great potential, but always under the guise of "bitcoin" even when I know bitcoin cant technically even do what they are saying. It's been entertaining.

I've had conversations about crypto with friends where it's clear we're all talking about sending value the way you'd send an email / cross-border transactions / IoV but no one mentions XRP or Ripple. My own reasonings... crypto tends toward tribalism, and I'd rather not upset someone who's deeply invested in another coin (vice versa, I'm sure).

For publicly-traded organizations, they probably don't want to scare off cryptophobic investors (which seems to be the majority of them).

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A few days ago, I opened a topic regarding the vast positive effects in regards to the FX market and International Logistics. One of the key elements I highlighted was the Letters of Credits issu

Thanks! I can't speak on behalf of R3. Also I assume R3 do not have to say they would use XRP for Trade Finance transactions. First XRP is the (or one among others) digital asset R3 can use

And there it is!  

25 minutes ago, codiusrex said:

...and they keep on saying it. If they want transparency then XRP is superior to Bitcoin but masses will consume whatever rhetoric the BTC maximalists will feed them.

“[Bitcoin] is a better currency. It’s decentralized, open, it’s transparent. Everybody knows what happens on the blockchain,”  —Tim Draper

https://www.foxbusiness.com/markets/bitcoin-5-global-market-share-earth-tim-draper

6723BE4D-D7DF-49D8-AEAA-5D09DADD80C5.jpeg

"Everybody knows what happens on that blockchain." 

We also know what happens on the BCH and BSV blockchain. This is derivitive value that will be 'fractalised to death.' Consolidated agreement vs. a general consensus algo.

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16 minutes ago, JannaOneTrick said:

Please guys stay on topic.

I have a question.  I hope this is "on topic"

Would it be as profitable for a big bank to invest in maintaining a market maker at the end of an XRapid corridor in their country of residence as to maintain vostro accounts for correspondence banking abroad?  Of course they could do both.  But I was thinking maintaining a liquidity service in your own country is perhaps better use of money than trying to provide liquidity  in foreign capitals?

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19 minutes ago, Julian_Williams said:

I have a question.  I hope this is "on topic"

Would it be as profitable for a big bank to invest in maintaining a market maker at the end of an XRapid corridor in their country of residence as to maintain vostro accounts for correspondence banking abroad?  Of course they could do both.  But I was thinking maintaining a liquidity service in your own country is perhaps better use of money than trying to provide liquidity  in foreign capitals?

I don't think it is on the topic of the LC. Also I don't understand both your questions I don't have an answer.

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@JannaOneTrick it certainly appears that this is an area that is crying aloud for blockchain - perhaps Ripple/XRP/Codius could solve this knotty problem for international commerce. I think you're really on to something here! 

On 4/17/2019 at 3:25 AM, JannaOneTrick said:

As I see it, I am definitely convinced DLT, and Ripple, will dramatically enhance International Trade as we know it and alleviate its highly fragmented system.

608b838fa2c74b6a3938ac9cebf6aa9c.png

 

 

 

 

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On 5/9/2019 at 5:38 AM, JannaOneTrick said:

Third, it might not be their priority to say they will use XRP, it could be obvious to them they would use it, so there is no point in stating it, maybe also they do not think about XRP every time they breath in and out.

Good Saturday afternoon @JannaOneTrick,

So I emailed and called the R3 press release guy Charley Cooper a few times this week to see if he could shed a little light on if XRP was used in their LC trials or if he could even confirm that NDAs were in place. No response to my emails and he’s not so good at answering his phone-so I got nothing.

I’ve reread R3’s press release and your follow up and got the light bulb in my head to finally flicker on even if the wattage appears low.

The LC concept continues in their beta but it removes labor, delays, errors, makes any errors that do exist instantly apparent for resolution, standardizes the process for all participants end-to-end in an optimal manner, etc.

The result is less cost, increased speed and not that I can see it but I perceive it: the ability to handle greater volume.

While I can’t see a cost analysis, my guess on the part of the cost analysis is the cost of poor quality and possibly to a lesser extent the cost of labor. The cost of poor quality is the fewer goods capable of flowing in the current LC process that takes 5-10 days vs 24 hours. In theory that could be a five fold decrease in trade loss capability on the low side today provided the LC process is the constraint (which I have no idea if it is). The cost of labor is all the people required to do the manual processing, reconciling due to non-standard processes between institutions, error finding and correcting, expediting, etc.

I don’t know the true magnitude of this but I gotta believe simply by the topic of International Trade that it’s an enormous layer of the IoV. And I’m curious if it turns out to be one of the easier transformations to make rapid progress in wrt not having the governmental clustering effect of regulatory reform and delay.

It’d be great to find a huge area of improvement to implement and demonstrate XRPs usage and benefit when unhindered by bureaucracy. 

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On 5/11/2019 at 12:47 PM, Roaring_Twenties said:

Good Saturday afternoon @JannaOneTrick,

So I emailed and called the R3 press release guy Charley Cooper a few times this week to see if he could shed a little light on if XRP was used in their LC trials or if he could even confirm that NDAs were in place. No response to my emails and he’s not so good at answering his phone-so I got nothing.

Heya @Roaring_Twenties

Thanks for contacting them, eventhough i hardly see them giving an answer. Disclaiming the use of XRP, in such or such Strategic Business Unit (R3 is developing an insane amount of projects), can be confidential as it is purely strategic.

On 5/11/2019 at 12:47 PM, Roaring_Twenties said:

I’ve reread R3’s press release and your follow up and got the light bulb in my head to finally flicker on even if the wattage appears low.

The LC concept continues in their beta but it removes labor, delays, errors, makes any errors that do exist instantly apparent for resolution, standardizes the process for all participants end-to-end in an optimal manner, etc.

The result is less cost, increased speed and not that I can see it but I perceive it: the ability to handle greater volume.

While I can’t see a cost analysis, my guess on the part of the cost analysis is the cost of poor quality and possibly to a lesser extent the cost of labor. The cost of poor quality is the fewer goods capable of flowing in the current LC process that takes 5-10 days vs 24 hours. In theory that could be a five fold decrease in trade loss capability on the low side today provided the LC process is the constraint (which I have no idea if it is). The cost of labor is all the people required to do the manual processing, reconciling due to non-standard processes between institutions, error finding and correcting, expediting, etc.

I don’t know the true magnitude of this but I gotta believe simply by the topic of International Trade that it’s an enormous layer of the IoV. And I’m curious if it turns out to be one of the easier transformations to make rapid progress in wrt not having the governmental clustering effect of regulatory reform and delay.

It’d be great to find a huge area of improvement to implement and demonstrate XRPs usage and benefit when unhindered by bureaucracy

Voltron indeed aims at standardizing the whole bureaucratic process by bringing the 4 key actors I mentioned before on the same platform.

I found an interesting video that could e interesting to not only the people who is reading this topic but also to everyone who thinks of the concept of aUI for banks and such for using xRapid or the traditional Swift channel.

This video details a bit the process of the LC.

For the purpose of ease of understanding, I will use the term DC on this post, as the author of the video calls it this way.

You will see the 4 major participants in the DC, (Documentary Credit), another way to call an LC ("Crédit Documentaire" in my mother tongue).

Voltron will be used by:

  • Applicant (Buyer / Importer)
  • Beneficiary (Seller / Exporter)
  • Issuing Bank (Importer's Bank)
  • Nominated Bank (Exporter's Bank)

The process on Voltron follows the typical process of a traditional DC:

  1. The issuance of a DC must be a draft (as it may be asked for edit later in the future), is done by the Buyer. You will see many criterion from the traditional DC (Documents required, field 46A in a paper version DC, see image at the bottom of this post, like the Bill of Lading, which is a shipping document (ocean or multi-modal), the invoice, a packing list...).
  2. The Beneficiary must review the content of the issued draft of the DC from the Applicant.
  3. The Issuing Bank issues the draft of the DC.
  4. The Nominated Bank advises it.
  5. Optional amendment, but happens very frequently (because it is a legal contract, everything must be clear and formal), can be requested from both sides. As an example, the Applicant can ask the Beneficiary to send 3 copies of the Airway Bill (shipping transport), instead of just 1, correct a minor typo etc...
  6. Optional, agreement to the amendment by the opposite party, sent for confirm to the Banks.

Shipping

After dispatch of the goods, the exporter delivers the required documents to its bank. The documents are examined against the terms and conditions stipulated in the DC.

Payment

  1. If the requirements have been complied with, the exporter will be able to obtain payment (from the Nominated Bank).
  2. The exporter's bank (Nominated Bank) sends the documents to the importer's bank (Issuing Bank) and receives payment either at sight or term.
  3. The importer's bank (Issuing Bank) delivers the documents to the importer upon reimbursement, after which the goods may be handed over.

The last part is where obviously XRP logically could come in play if Corda Settler is used with Voltron.

So, as you said @Roaring_Twenties, the process is standardized by all participants as they are all united onto the same very simplistic UI. Banks have some fees (commissions) related to the verification of the documents, amendments, I do not think these will change.

Every additional document can be viewed through Voltron (in this example, the Invoice and the Bill of Lading), everything will be digitally available through the platform.

Here is a paper version of a page of a DC I found, where you can see some fields covered in the video above:

lcsys-demo-output-documents-1-638.jpg

Edited by JannaOneTrick
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That’s actually a great demo video @JannaOneTrick. It’s short, sweet and to the point. It provides what the standardized process looks like for those in the process.

International trade payments becoming almost instantaneous via Corda Settler and our XRPs has got to put a dent on the utility side of the equation. Looking forward to seeing if this can become a reality in our near future. Thanks!

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CordaCon 2018, London

Voltron: Lessons from POC to Pilot and road to Production

 

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These quotes are just some of the many very interesting statements from this panel discussion.

In the last quote, the representative from BNP Parisbas tells about Voltron being able to completely digitize the Letter of Credit transaction from its initiation to its settlement and how it is different from what Swift offers today, as the whole Letter of Credit process currently revolves around Swift ecosystem.

00:09:18 - Question

Quote

Eric, over to you, so can you talk a little bit about the collaboration with the partners, with peers. It can be extremely rewarding, it can also be very challenging.

Answer from Eric Henry

Quote

We want to create, to develop one single collaborative platform and i think that's exactly what our clients expect from us. Because we are talking a lot about the banks but I would also like to include our clients, our cooperate clients because we can develop the best platform, worldwide, if it's not used by our clients, we will fail, and that's definitely not our objective as you can imagine. So I'm talking about cooperate clients but I also want to include in this discussion the full ecosystem. When we are talking about Trade Finance, it's not only one buyer one supplier, two banks. No, it's much more complex and as Chris said at the beginning, we need to also involve freight forwarders, carriers, authorities, customs, insurers, inspection companies and so forth. So we know that it's a start, we know that it will be a long journey so we have started this collaborative work between us, it is great, but now we want to expand this work with our clients and our ecosystem. 

00:14:54 - Question

Quote

How's the Voltron Letter of Credit solution different from what Swift offers today ?

00:16:00 - Second part of the answer from Jim Bidwell

Quote

The key part for me here about Voltron is don't just think about this is a Letter of Credit. The first thing we are doing is establishing a user interface to transact the Letter of Credit but the key to this is building an infrastructure and an ecosystem that is interoperable across many many platforms and many of those doors already mentioned.

00:16:27 - Answer from Eric Henry

Quote

If I may add, it's also a way for us to digitize and to facilitate digital transformation for our clients but I think it's also a key component on this project because our clients are requesting more and more exchanging data and no more paper. So for the time being I do not see any solutions or initiatives offering such ingredient that Voltron is really unique on the market because it's a way for us to digitize a full transaction from its creation to its settlement including presentation of commercial documents, or data, required under this LC. And that's pretty new in the market.

 

Basically Voltron will be fully interoperable and will include all the participants from the ecosystem of the LC. You can think of it as the future of Supply Chain and Trade Finance, fully digitized, interoperable, user-friendly, all-in-1 solution.

The 10 banks which started the Voltron project want to gather all the rest of the world using this platform for Trade Finance (this one being specifically for LC).

They also mentioned another R3 product: Marco Polo, another Trade Finance initiative. Basically all Corda products should be fully interoperable, and so Corda Settler too.

Edited by JannaOneTrick
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I work in international trade for a bank who participates in the Voltron project. I can tell you first hand that trade services in their current guise, Letters of Credit are so archaic, cumbersome and not fit for purpose. This is an area of business which is crying out to be modernised via DLT, smart contracts etc. The information provided by the author is fantastic. 

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  • 2 months later...

Finextra & SEB

at the Ebaday 2019

Interview with Paula da Silva

Head of Transaction Banking at SEB

 

 

Banking is a very traditional business, we live with a lot of legacy systems and we need to get away from that and just develop new ways of thinking.

I think fintechs are showing us the way.

About blockchain:

We should be talking about use cases and how we can leverage off that new technology.

We are primarily using it for trade finance with R3 and several other friendly bankers embarking in our project called Voltron.

Voltron involves a lot of players such as transportation firms, legal firms and banks where we can help our customers get their goods and be paid for them.

She was involved in a panel on how banks can facilitate a change in the society and be embedded in the different ecosystems that we see emerging both to make it more sustainable and to make it real-time (human tasks, not settlements) so that you don't do your job and banking on the side.

It needs to be connected 

We have to develop real-time capabilities both within our own countries but also cross-border and not only for private individuals (ie. remittances) but also for corporates (ie. Import/Export)

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CORRUPTION!!! IMAGINE NOW, we as citizen pay billions of euros to state, and what you do is TRUST THAT MONEY IS USED WELL, thats right, you actually TRUST it, thats it, you dont know where **** goes how much was spend, its not tracked that well. I see highest usecase right after the machines paying machines to eliminate corruption and basically run state in well more ordered way where you KNOW WHERE MONEY IS , WHO SPEND IT, HOW MUCH, AND WHO GOES TO JAIL ONCE SOME MILLION GOES MISSING.

 

Corruption is such a big deal where im from, i would put out death sentences not just to corrupted politicians bud also to their family members who benefit from this crap. MILIONS AND BILLIONS go to ****. Someone has to pay for this waste, with life!

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