Over the weekend, Australian blockchain bank guarantee platform Lygon Ark was officially launched. The initiative results from a three-year collaboration between ANZ, Commonwealth Bank, Westpac banks, property company SCENTRE and IBM resulting on incorporating a company five months ago.
Lygon’s system doesn’t simply digitize the guarantees. It does so without the need to trust a central party.
The fact that guarantees are paper-based makes them painful. They are subject to fraud and spoilage. They’re expensive, time consuming because they often require someone to visit a bank in person, difficult to amend and have some environmental impact. On that point, it is estimated that in Australia, during any year, over four million pieces of paper are used in bank guarantees supported by 80,000 courier deliveries and a million transport journeys.
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