Accounting giant Deloitte is adopting the Polkadot-based KILT blockchain to help streamline its logistics and supply-chain services with a specific focus on the shipping industry.
The accounting firm announced on Wednesday that it will use the KILT parachain to bolster its know-your-customer (KYC) and know-your-business (KYB) processes, which are measures responsible for safeguarding institutions against fraud, corruption, money laundering and other criminal activities.
Polkadot is a blockchain system designed to connect various blockchains. It has a main chain called the “relay chain” and many user-created chains known as “parachains.” The native token used on Polkadot is called DOT. Its goal is to enable different blockchains to work together seamlessly.
KILT issues decentralized identifiers (DIDs) and other verifiable credentials, delivering secure identity options for both enterprise and individual users. Its specific focus is on producing saleable business options in the emerging sectors of digital identity and data sovereignty.
According to KILT, the typical KYC/KYB process suffers from inefficiencies.
It often requires the verification of paper-based documents and the dispersion of customer data across multiple platforms, resulting in privacy risks. A certificate is issued after verification, but it can only be used once by the verifier with the customer never receiving the certificate.
With KILT’s identity infrastructure, reusable KYC and KYB credentials are generated and stored within users’ digital wallets. This grants users complete control over their data at all times. Users have the autonomy to determine how and which data points from their credentials they wish to share and with whom. To assist users in managing and sharing their credentials, Deloitte will provide a wallet as a browser extension.
“Digital credentials that are convenient, cost-effective and secure have the potential to open new digital marketplaces, from e-commerce and DeFi to gaming. Deloitte has the technology knowledge, reach and trust to issue credentials that are globally accepted,” said Micha Bitterli, head of Deloitte Managed Services.
So KILT and Deloitte just casually announced maybe the biggest real world integration of blockchain tech ever, with Nexxiot (I didn’t know who they were either, then I checked 🤯), Vodaphone, Happag Lloyd, and the 5 largest global transaction banks. Probably nothing.… pic.twitter.com/GWnBLcP5zR
— Mark Cachia (@mark_cachia_) December 6, 2023
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Big name companies spur on blockchain technology adoption
Deloitte has been involved in blockchain technology for several years. In 2019, the company introduced a plug-and-play product that allowed enterprises to create blockchain-based services for their clients.
Earlier this year, Deloitte joined a group of participants, including BNP Paribas, Cboe Global Markets, Goldman Sachs (NYSE: GS), and others, in fintech firm Digital Asset’s interoperable network. This network offers a decentralized infrastructure for institutional clients.
Shopping giant Hapag-Lloyd (FWB: HLAG) will be the first to implement its your KYC/KYB protocols, and telecommunications giant Vodafone Group (LON: VOD) (NASDAQ: VOD) will follow. Hapag-Lloyd plans to equip approximately 1.5 million containers with tracking devices to demonstrate their security and ensure they remain unopened.
In 2018, computing giant IBM (NYSE: IBM) collaborated with shipping giant Maersk to create TradeLens, a project aimed at enhancing supply-chain services in shipping through blockchain technology. However, in November 2022, they shut down TradeLens due to insufficient commercial adoption.
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