IBM has been exploring the use of blockchain in dispute resolution, according to the company’s vice president of blockchain technologies, Jerry Cuomo, in a recent interview with Forbes.
Disputes between IBM’s corporate treasury and clients of IBM Global Finance, the financing arm of IBM which facilitates the purchase of IBM products, are currently delaying payments of over $100m by up to 40 days.
By running test transactions using distributed ledgers, IBM found that delays were reduced to less than 10 days. The distributed ledger captures the entire lifecycle of the deal, which enables instant access to information by all parties. This does away with cumbersome phone, email and fax communication, making it possible to work backwards to the last point in the transaction at which all parties were in agreement.
A proof of concept was then launched with around six IBM Global Finance clients. Disagreements were resolved quickly and customer satisfaction levels also improved, Cuomo said.