Coal miner Contura Energy says it is pursuing blockchain-based innovation in partnership with an Amazon subsidiary to transform the way letters of credit (L/Cs) work for the company.

Contura mines coal basins in the US states of Pennsylvania, Virginia, West Virginia and Wyoming.

Anticipated benefits

The company says it is pursuing blockchain options because they enable parties to execute transactions without the need for a central trusted authority.

Blockchain also ensures that transaction records cannot be changed and provides each party with an up to date copy of the appropriate data. This could enable end to end digitalisation and automation of the L/C process by cutting down more than 50 per cent of processing time.

The US miner says verification of strict compliance could be accomplished without manual review, and errors flagged could be corrected quickly and automatically while smart contracts enable business logic to be embodied as part of a blockchain.

Amazon partnership

Contura says it is partnering with Amazon Web Services (AWS) to help the company build a scalable blockchain network that trading partners can easily join from anywhere in the world.

The company also reckons partnering with a company as well known as AWS in providing cloud-based solutions gives Contura a head start in terms of credibility and scalability.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.