To keep pace with the world of technology and accelerate its digital journey, RIL led its first investment in a blockchain-based technology company.
RIL has acquired a 5.56% stake in the startup blockchain VAKT Holdings Ltd (VHL) for $ 5 million.
The company in a regulatory file stated that the investment will accelerate the digital tour of the company by actively participating in the emerging and advanced blockchain solution for the energy markets.
Headquartered in the UK, VAKT has been led by nine leading energy companies and banks that are committed to embracing Blockchain technology, working together to develop an industry-wide solution for the age-old problems we all experience every day.
VAKT aims to transform the life cycle of complete trade. Leveraging the blockchain, it promises to eliminate reconciliation and paper processes, improve efficiency and create new commercial financing opportunities, according to the company.
Reportedly, Reliance plans to build a dedicated team for emerging technologies such as artificial intelligence, machine learning, and blockchain technology.
Blockchain is basically a digital ledger for data storage. Technology decentralizes information without being copied.
The information is stored on blockchain through a shared database that can be accessed in real time. This database is not stored on physical servers but on the cloud. It promises to increase profitability and potentially unlock liquidity for businesses.
Cryptocurrency is considered one of its most popular applications. Reliance Jio also announced to launch its cryptocurrency: JioCoin. However, the company has not issued official comments on development.
At the beginning of the year, Finance Minister Arun Jaitley had talked about plans to adopt blockchain technology. We will explore the use of blockchain technology proactively to usher in the digital economy, he said.
The state governors of Telengana, Maharashtra and UP have also shown interest in the use of blockchain technology.