According to the press release of the European Investment Bank 56 coders from 15 countries in 12 teams took up the challenge: an innovative blockchain event.
A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.
The 48-hour challenge: to use blockchain technologies to redesign the transaction processing of commercial paper.
A reward of EUR 5 000 and a contract with the EIB for the winners – the EY team – to develop its POC (proof of concept).
Building on their partnership and common conviction that blockchain will profoundly impact all industries including the financial sector, the European Investment Bank (EIB) – the financing institution of the European Union – together with Telindus (digital expert and provider of ICT, fintech and telecom solutions and services) for technical support, held a two-day Blockchain Challenge gathering 56 coders (12 teams) from 15 countries at its Luxembourg headquarters.
The exercise was the first of its kind for the EIB and for the treasurers and representatives of more than 20 financial institutions which joined the event to interact with the coders while holding their annual forum – this year on the topic of blockchain.
Is blockchain a new fashion or a real disruption, an evolution or a revolution in the way the banking industry operates? What are the challenges at stake for the regulators, the infrastructure, the industry and the employees? The European Investment Bank, a strong supporter of innovation, addressed these themes over two days, combining a hard challenge for the coders with its annual conference for European bankers dedicated to treasury issues.
The EIB had invited its 25 main counterparties in the banking sector to its annual forum dedicated to treasury issues with a specific objective this year: to find out what blockchain is and what it can bring to their business.
While the conference was running, the coders were in the adjacent room with a 48-hour challenge: using blockchain technologies to improve the transaction process of commercial paper – a short-term financing instrument (debt securities issued on the money market) that is used worldwide in treasury operations and still relies on an ‘archaic’ and complex process.
For the EIB, the challenge was to explore the potential of blockchain for such an instrument and demonstrate to the participants of the seminars the potential benefits of blockchain technology for their own activity. The bankers, treasurers and lawyers participated in regular exchanges with the coders, providing expert information on the financial processes. According to the coders, that was key to the success of the challenge and made it a unique event.
For further information: EIB