Blockchain Contract Management Between IBM and Bank of Tokyo-Mitsubishi UFJ
IBM has announced it has signed a contract with the Bank of Tokyo-Mitsubishi UFJ to examine the design, management and execution of contracts among business partners using blockchain technology. The two companies will begin by piloting blockchain to automate business transactions between themselves. It is one of the first projects built on the Hyperledger Project fabric, the open-source blockchain platform, to use blockchain for real-life contract management on the IBM Cloud.
IBM and BTMU have built a prototype of smart contracts on a blockchain to improve the efficiency and accountability of service level agreements in multi-party business interactions. The bank plans to begin using it to manage contracts within their business in fiscal year 2017. In addition, IBM and BTMU aim to manage agreements between the two companies with the system by the end of fiscal year 2017. To help improve efficiency, IBM and BTMU will monitor delivery and usage of equipment with a sensor that embeds information into the blockchain. This will then automate invoicing and payment processes between the two companies.