To keep up with technology world and accelerate its digital journey, Mukesh Ambani-led RIL has made its first investment in a blockchain-based technology firm.
RIL has acquired a 5.56 per cent stake in blockchain startup VAKT Holdings Ltd (VHL) for $5 million.
The company in a regulatory filing said that the investment will speed up the company’s digital ride through active participation in emerging and evolving blockchain enabled solution for energy markets.
VAKT, which is based out of the UK, is claimed to have been driven by nine leading energy companies and banks who have committed to embracing Blockchain technology, working together to develop an industry-wide solution to age-old problems we all experience every day.
VAKT aims to transform the full trade life-cycle. Leveraging blockchain, it promises to eliminate reconciliation and paper-based processes, enhance efficiency and create new trade finance opportunities, according to the firm.
Reliance reportedly planned to build a dedicated team for emerging technology such as Artificial Intelligence, Machine Learning and blockchain technology.
Blockchain is basically a digital ledger for storing data. The technology decentralizes information without it being copied.
The information is held on blockchain through a shared database which can be accessed on a real-time basis. This database is not stored on physical servers but on the cloud. It promises to cost-effective and potentially unlock liquidity for businesses.
Cryptocurrency is considered one of its most popular applications. Reliance Jio has also been said to launch its own cryptocurrency- JioCoin. However, the company has not made any official comment about the development.
Early in the current year, Finance Minister Arun Jaitley had talked of plans to adopt blockchain technology. We will explore the use of blockchain technology proactively for ushering in the digital economy, he had said.
State govts of Telengana, Maharashtra and UP have also shown interest in using blockchain technology.