State-Owned Bank, S7 Airlines, and Blockchain-Based System

Sberbank is the largest state-owned bank in the Russian Federation. This fact underlines the importance of this bank. Interestingly, Sberbank is working with a famous Russian airline company to introduce a blockchain-based ticket sale system. 

It is worth mentioning that, Sberbank is collaborating with S7 Airlines regarding a new ticket sale platform. This platform will enable corporate clients with instant settlement through smart contracts and tokens. 

Interestingly, they plant to unveil the new system in September 2020. Notably, for the first time in history, virtual tokens will be used for payment as well as settlement in Russia.

People should take into account that only corporate clients will be able to use this platform at the current stage of development. Notably, the blockchain-powered system wants to cut settlement timer from as many as 10 days to 20 seconds. 

Blockchain-based system and new opportunities

Let’s have a look at the new system. The new ticket sales system uses a proprietary blockchain platform that allows companies to develop their blockchain applications and to create smart contracts. 

Moreover, S7 Airlines already placed its blockchain ticketing app on the platform by Sberbank. Importantly, at the moment it is not clear how tokenization will take place within this new initiative. Russia’s largest state-owned bank will purportedly act as the owner of the tokenization platform. This platform will tokenize money from a corporate client’s account using smart contracts. 

Also, Sberbank as well as S7 Airlines are working towards blockchain development. Importantly, S7 Airlines reportedly executed the world’s first blockchain-powered ticket purchase in cooperation with Russia’s largest private bank, Alfa-Bank in 2017.

 Interestingly, by July 2019 the firm processed more than $1 million in payments through the platform. People should take into account that S7 Airlines is a member of the global aviation alliance Oneworld. Furthermore, other airlines in Russia should also introduce such platforms.