CURRENT AFFAIRS

Detailed explanation-1: -Axis Bank issued industry’s first letter of credit (LC) on the Secured Logistics Document Exchange (SLDE), a government-backed blockchain-enabled platform, in what could be a signal that the regulator and the government are adopting a positive stance on blockchain technology though they are averse to cryptocurrencies.

Detailed explanation-2: -Blockchain is basically a distributed ledger. It can store facts like, who owns a particular piece of land or say a bond. The technology can be used to keep an immutable record of ownership and enable transaction of the asset amongst distrusting parties.

Detailed explanation-3: -Blockchain technology facilitates the LC procedure by making it faster and simultaneously more straightforward. By enabling the LC procedure with the blockchain technology, the document exchange procedure will reduce from seven to ten days to only few hours.

Detailed explanation-4: -Blockchain can streamline banking and lending services, reducing counterparty risk, and decreasing issuance and settlement times. It allows: Authenticated documentation and KYC/AML data, reducing operational risks and enabling real-time verification of financial documents.