Coinsilium Group Limited (AQSE:COIN) has signed an advisory partnership agreement with LC LITE, a firm developing a letter of credit platform, to advise on a token generation event (TGE).
The blockchain venture and advisory firm said it would support LC in the preparation and execution of the TGE, with chief executive Eddy Travia to join the advisory board of LC.
READ: Coinsilium updates on establishment of private crypto fund
LC LITE is seeking to develop a digital letter of credit system to importers and exporters that will connect buyers and supplier into a single ecosystem and create a faster and more efficient infrastructure.
LC LITE plans to use the Proof-of-Authority (POA) network, a public clone of the Ethereum protocol using a POA algorithm as its consensus system and will develop a private version of the POA network. In POA, blocks are produced by approved accounts called Validators. All Validators would be nodes, approved by LC LITE, and transactions would be free on the private network.
Travia said that the system would help make international trade “more accessible and viable for businesses”, with smart contracts and blockchain being used to "disintermediate a complex business process”.
Letters of credit are usually issued by banks to another bank, usually in a different country, to serve as a guarantee for payments made to a specified person under specified conditions.