Following the completion of a six-month pilot phase program, Factorin, a Russian blockchain startup, proudly announced the launching of its ethereum-based trade finance platform. The new system will enter the market with Dixy, the country’s fourth largest retail company as the key player.
DIXY is a crucial participant in the launching of the trade finance platform because it holds 2 percent of the nation’s retail market. The company specializes in everyday products such as foods. They have chains of supermarket stores in Moscow and St. Petersburg. They also dominate the federal district markets of Central, Northwest, and Urals as well as the Kaliningrad region. With all the assets combined, DIXY controls supplies more than half the demand for everyday products and foods in the Russian Federation. In 2018, DIXY filed a staggering $5billion in revenue.
Despite its massive success, the company is still working on growth and expansion with plans for opening new supermarket stores in the countries’ remote regions. With this goal, it is not surprising why the management welcomes the idea of using an ethereum-based trade finance platform in its trade finance operations.
Factorin developed the new system on a private version of ethereum. According to the co-owner and developer, Andrei Maklin, the platform will allow DIXY’s suppliers to receive the due payments within one business day after the transaction. Previously, the suppliers of the company had to wait for two weeks.
How Does the Platform Works?
Mr. Maklin explained that the platform uses a single interface. It connects with several banks and other companies that facilitate payment transactions between the retailer and the suppliers. He also mentioned two of the pioneer Russian bank participants, the Alfa Bank and Pervouralskbank. The utmost convenience is also guaranteed because, according to the founders, the platform is accessible via desktop and mobile devices.
At the moment, the platform has 20 nodes in its network. Two of these serve as “full-fledged” nodes on the server of the participants. Mr. Maklin confirmed that they are working on setting up three additional nodes.
The Preparations and Trials
Since December last year, Factorin had been testing the new system. The product had already performed more than 12, 000 transactions over the six-month trial period. During the testing, the developers had recorded a significant amount of time saved in payment settlements. Judging by the result, Factorin is confident that their product is ready to enter the market.
Julia Zhuvaga, the chief financial officer of DIXY, expressed the company’s fascination in the new system. According to her, tech visionaries like Factorin love the feeling of being able to excite the public. While most of them promise a glorious future, she stated that management companies need to see better results right away and not in the years to come. Factorin’s ethereum-based trade finance platform allowed DIXY to see change, and it was the main reason why they have given their absolute trust to the blockchain startup.
Factorin admits that DIXY is their first significant player. However, the team behind the platform is confident that other prominent participants will soon join the trade finance revolution.