The Agricultural Bank of China (ABC), China’s third-largest lender by assets, has completed his first farmland mortgage loan based on blockchain technology.
A local financial news source reports that the blockchain system has been tested for the first time in one of ABC branches in China’s Guizhou province, issuing a loan backed by a piece of agricultural land as collateral. The worth of loan is 2 million yuan, around $300,000.
This new blockchain system is part of the ABC’s effort to bring access to loans for farmers. The system fully utilizes blockchain technology such as distributed data storage, point-to-point transmission, consensus mechanism, and an encryption algorithm.
The chain node, which cannot be copied and cannot be falsified, effectively guarantees the authenticity and security of the “two rights” data and customer information and avoids the risk of “two rights” repeated mortgages from the source.
The Chinese bank is not the only one which will exploit the blockchain technology:
Bank of America recently won a patent over an innovation based on a blockchain to increase their security and data privacy.
Spanish banking consortium Niuron wants to create a blockchain identification platform by the end of 2018. The new system will enable digital client identification verification.