Country's largest lender State Bank of India (SBI) is set to launch beta versions of blockchain-enabled smart contracts by next month. It will be followed by blockchain-enabled Know Your Customer (KYC), according to an ET report.
Smart contracts are ones which deploys blockchain technology, a distributed and decentralized ledger, to maintain contracts between groups. The code and agreement are public and that is why can be traced and is also irreversible and thus do not require any enforcement agency.
Blockchain, the technology behind cyber currency Bitcoin, follows the concept of a centralised registry. Accessible to all members, and has every event is registered as an unalterable 'block'. It is also been recognized as the latest disruptive technology that could change the way transactions and data flow records are maintained.
"By next month, we should have two beta production solutions ready for use by the 27 banks. We will also invite further participation. The beta production that will be ready are smart contracts and second is KYC," Sudin Baraokar, Head of Innovation at SBI told ET.
A group of 27 banks have teamed up to build blockchain solutions for banking. SBI is a founding member of BankChain, which now has 22 Indian banks and five Middle East-based banks.