FinTech innovators and financial institutions the world over are exploring how to steer blockchain and distributed ledger technology in various directions, indicating that the market could see use cases for the tool far beyond cross-border payments.
BuyCo.io is one of these firms looking for less obvious ways to use distributed ledger technology. Reports published Monday (Feb. 22) said the firm, known as the world’s first dCommerce marketplace — which stands for decentralized commerce — has introduced a new solution to its consumer and business customers.
BuyCo.io is rolling out a form of collective buying, which uses distributed ledgers and smart contracts that facilitate buying and selling directly from suppliers to people and independent businesses.
It’s a form of eProcurement with distributed ledgers as its underlying technology.
“Traditionally, buying cooperatives are time- and labor-intensive to set up and run,” said Jamie Burke, the site’s founder, in a statement. “BuyCo.io gets buyers set up in a matter of seconds, and the entire process — from order processing, supplier management, governance, escrow and payment processing — are all fully automated through smart contracts built on Ethereum blockchain technology.”
Ethereum is a name that’s beginning to gain recognition within the market.
The biggest supporter thus far of Ethereum is Microsoft, which is collaborating with ConsenSys to establish an Ethereum Blockchain-as-a-Service solution that allows app developers on Microsoft Azure to use the blockchain technology to develop tools.
BuyCo.io’s use case is a bit more defined. According to reports, the company is working with Uphold to power the service. The platform said that it can reduce costs related to eCommerce as much as 15 percent by nixing the type of processes involved in traditional online purchasing through platforms like Amazon.
Businesses and individuals can hold up to 25 currencies through Uphold’s open API, Uphold Connect. The financial service company allows users to convert their money into other currencies at mid-market exchange rates and send funds across borders.
In a statement, Uphold Vice President of Product Success Byrne Reese said the technology is “almost eliminating legacy complexities, such as currency conversion and money transfer.”