The German bank partnered with chemical companies Evonik and BASF to test blockchain’s use in managing supply-chain processes.
The project is based on the mutual supplier relationship of Evonik and BASF
The two German chemical companies transmitted data to Commerzbank, which generated a “complete and tamper-proof depiction” of the business processes, with smart contracts validating the transaction. For this purpose, the partners were provided with programmable digital euros for trading on the distributed ledger technology platform.
The project is based on the mutual supplier relationship of Evonik and BASF, which have maintained an active business relationship for many years and regularly settle trade receivables. The companies have agreed to expand the project to other supply chain partners in the coming months.
Plans date back to 2017
It is not the first time these companies have been interested in blockchain technology, Commerzbank for example, announced in July 2017 that it was studying blockchain technology as a way to digitalize supply chains.
BASF on the other hand is already using blockchain technology in pilot projects for the secure exchange of data and information between multiple participants in complex value chains. The company has been involved in blockchain technology since 2017 and has studied its potential to use it for tracking shipments of goods.