Tech giant IBM is collaborating with a number of organizations to legally register a company on a blockchain, according to Trust Nodes.
The project partners include Swiss blockchain startup Proxeus, Canton Zug, Grunder Rechtsanwälte, IBM Switzerland, Kaiser Odermatt & Partner, Swisscom, VermögensZentrum, and Zwicky Windlin & Partner. Using digitized workflows and smart contracts, they aim to complete the registration process of a company in 3 hours, instead of the current 4-6 weeks.
The process was showcased during the DigitalSwitzerland challenge that took place in Zurich.
“What we demonstrated today is that without any legislative change, traditional paper-driven, highly iterative processes can be transferred to the blockchain securely and effectively, increasing efficiency and dramatically lowering costs,” says Antoine Verdon, cofounder of Proxeus. “But incorporating a company is only the first step: by tokenizing company shares and connecting them with crypto-identities, we will be able to automate entire areas of corporate law and financing.”
The trial involved shifting the existing registration process to a digitized one. Using Hyperledger blockchain and smart contracts, the various steps involved could be processed instantly, thereby reducing the time it takes to verify the multiple steps of registry.
“The bank will state that the capital money has indeed been paid; the notary will confirm that the necessary documents have been provided, read over, and approved; and the commercial register does the final check that everything is lawful,” Trust Nodes quoted the official release. “If all of the conditions are met, then the filing, which up until that point will have been provisional, will be officially registered with the Commercial Register and Official Gazette of Commerce.”
