Home News Australian government awards $4M in grants to two blockchain startups

Australian government awards $4M in grants to two blockchain startups

533
0

The Australian government is committing millions to two blockchain-based pilot projects to explore the technology’s potential in supply chain solutions.

Funding in the amount of 5.6 million Australian dollars (4.1 million US dollars) was received in the form of grants from blockchain validation startup Everledger and consulting firm Convergence.tech.

The consulting company Covergence.tech received approximately $ 2 million for research in the field of automation of tax reporting processes for trading companies, including those that sell alcoholic beverages. The Convergence project aims to provide companies with ways to reduce the cost of compliance control associated with the creation, storage and transportation of their products.

And the startup Everledger, which specializes in creating a global diamond registry; allocated $ 2.24 million to develop solutions for the mining sector that will increase demand for Australian products on the global stage in the future.

“These two successful projects will demonstrate opportunities to improve the technical and regulatory environment on blockchains in Australia. Increase blockchain literacy and support collaboration between the Australian government, the private sector and blockchain companies”, Porter said.

Why is the Australian government investing in blockchain?

Blockchain is a distributed database that stores information about all transactions of system participants in the form of a “block chain”. So, all users have access to the registry. Acting as a collective notary who confirms the truth of the information in the database. Blockchain used for financial transactions, user identification, creation of cybersecurity technologies, etc.

Blockchain technology has the potential to transform established business processes and radically change how regulators work.

For example, the government says in a press release that the research these companies are doing will help ease the burden of regulatory compliance.

In addition, these companies will increase the productivity and competitiveness of critical sectors of the Australian economy. Such as mining, food and beverages.

Christian Porter said the grants will demonstrate the potential of blockchain. So, it will help businesses reduce costs and red tape throughout the supply chain.

Blockchain grants align with the country’s 52-page national roadmap for blockchain. Focusing on regulation and standards, skills, opportunity and innovation, and international investment and collaboration.

Note also that interest in blockchain continues to grow. Back in 2016, many banks, exchanges and fintech companies announced the launch of their own technology development projects. Blockchain remains one of the hottest topics in financial services and stock markets. And there is every reason to expect its speed to grow.

Technology is truly capable of protecting the data we have to work with while making it more accessible and transparent. In addition, blockchain can significantly reduce costs and minimize the time it takes to solve emerging problems and eliminate errors.

Confidence in the blockchain is also supported by the fact that any data changes are possible only if the network participants confirm the legitimacy of the transaction in accordance with general rules and protocols.

Previous articleCrypto crackdown targeting USD access points has begun: Caitlin Long
Next articleJihan Wu: Regulatory crackdown may be good for crypto