Blockchain company Skuchain has released the DLPC CorDapp, a component of its Inventory Control & Finance (ICF) product, with the aim of promoting interoperability between trade finance blockchain applications.

The component is compatible with the Bankers Association for Trade and Finance (BAFT) framework for a digital ledger payment commitment (DLPC), a set of standards that was established in 2018 by a neutral working group.

The DLPC assumes that trade finance needs to be interoperable between digital systems and between blockchains and Skuchain's new application claims to satisfy both of those needs.

Digital L/Cs and alternatives

The DLPC is the blockchain-based asset at the heart of ICF that enables buyers to use letter of credit (L/C) alternatives, pay suppliers later, reduce cost of goods sold, gain greater visibility and agility in their supply chain and insulate themselves from supplier bankruptcy and non-performance.

Skuchain's EC3 platform uses proof of provenance codes to track the flow of goods and secure smart contracts governing an entire purchase cycle which give corporates the ability to digitise L/Cs, purchase orders, invoices and bills of lading.

How it works

Enterprises submit purchase orders, for example, from buyers to suppliers with directives to create a DLPC for placement on the Corda network.

A smart contract is then triggered, which produces the DLPC and submits it to Skuchain's EC3-Corda gateway.

This gateway then talks to the Corda network, which then validates the DLPC and submits the transaction.

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