Vodafone’s Digital Asset Broker (DAB) announced the completion of a proof of concept (PoC) in collaboration with Sumitomo Corporation, Chainlink Labs, and InnoWave. This PoC focused on enabling blockchain interoperability for digital bills of lading.
The PoC utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and other technologies to connect messages across both permissionless and permissioned blockchains through a decentralized network. This approach mirrors the solution used in a recent Swift PoC for tokenization trials.
Bills of lading are crucial documents representing cargo title during transit. Typically, when an exporter loads a container onto a ship, the ship issues a bill of lading to the exporter. In the most basic scenario, the exporter might courier a physical bill of lading to the importer for cargo collection upon arrival.
However, electronic bills of lading are also pivotal in trade finance. Consequently, they are often transferred among banks and across various systems, many of which employ blockchain technology. Numerous trade finance platforms, multiple shipping solutions, and the majority of electronic bill of lading offerings use blockchain. This diversity in blockchain solutions can be burdensome for logistics firms that prefer not to integrate with numerous different systems.
Despite their importance, these digital solutions are not yet widely adopted. Last year, only 2.1% of the 45 million bills of lading were digital. Several shipping trade bodies, including Swift, have obtained commitments from major cargo shipping carriers to transition to digital, with an initial deadline set for 2025.
Interoperability is key to this transition as it simplifies the adoption process for all logistics companies, helping shipping carriers meet their digital commitments.
Jorge Bento, CEO of Vodafone DAB, commented on the collaboration: “Vodafone DAB and Chainlink are demonstrating how to merge their platforms to navigate this sea of incompatibility, connecting traditional markets with advanced decentralized platforms.” He emphasized that this fusion facilitates secure and seamless data and service exchanges across the global trade ecosystem, valued at over $30 trillion last year.
Delving into Vodafone’s DAB, it’s a system that links Internet of Things (IoT), blockchain, and smart contracts to foster automation in the so-called Economy of Things. IoT devices are equipped with SIM cards and digital identity software, functioning as DAB digital passports. Vodafone illustrated this with an example where an IoT device attached to cargo could alert an insurer in the event of a fire, triggering an automatic claim. This technology has also been explored in the automotive sector.
Vodafone has recently spun out DAB, with Sumitomo Corporation acquiring a 20% stake in the venture. Additionally, Vodafone DAB plans to operate a validator node on Chainlink’s Network.
“Interoperability” simply means making different systems work together. You can learn more about it here. When we talk about “logistics companies,” we’re referring to businesses that help move goods from one place to another. Find more information on this website. “Vodafone DAB” might relate to digital services offered by Vodafone. Check out their site here. “Chainlink” is a technology that helps ensure that the information entering a blockchain is reliable. For more details, visit their website. “Decentralized platforms” are websites or systems where control and decision-making are spread out rather than held by one single group or person. Understand more at this link. “Internet of Things” refers to everyday objects that can connect to the internet and communicate with each other. More can be found here. “Blockchain” is a secure, online record-keeping system that’s very difficult to tamper with. Learn more about it here. “Smart contracts” are like traditional contracts, but they run automatically as coded agreements on the blockchain. You can get more info here. “Economy of Things” is a concept where connected devices can make transactions on their own, potentially boosting the economy. More information is available here. “Sumitomo Corporation” is a big company involved in multiple industries. You can find more about them at their website.
Leave a Reply