THE WHAT BASF and Evonik are taking part in a blockchain project in partnership with Commerzbank, testing blockchain programmable money for supply chain payments.
THE DETAILS The chemical companies joined forces in November 2020 to test blockchain technology and programmable money for bilateral supply chain processes handling.
With the pilot project a live environment, the data was transmitted to the Commerzbank blockchain, supported by supply chain integrator Elemica.
According to Ledger Insights, a tamper-proof record of the business process and data was registered to trigger the automated payment.
THE WHY A Commerzbank rep stated that programmable money has potential to aid supply chain digitalization.
Heinz-Günter Lux, Senior Digital Strategist at Evonik Digital, said, “The payment process via blockchain and by means of programmable money along our existing process chains is definitely more transparent, quicker and more reliable. It is an important building block towards the development of fully autonomous supply chains.”
The two companies are said to be looking to expand the use of the payment method in collaboration with other supply chain partners throughout the year.