Russia, known active proponent of blockchain, has started to use Ethereum with its biggest domestic airline named S7, with its live production.
According to report of local paper, S7 has begun selling flight tickets through ethereum’s blockchain this Monday.
As of posting, little details about the historic shift is provided except that the project is launched in collaboration with Alfa-Bank, Russia’s biggest commercial bank.
“The blockchain based payment system ensures receipt of proceeds from sales, minus the commission of the agent, immediately after issuing the ticket,” rather than waiting two weeks for settlement as in traditional payments.
Since last year, S7 and Alfa-Bank have been collaborating on exploring blockchain technology with test payments made during December 2016 when Dmitry Kudelkin, S7 Group Deputy General Director, stated:
“We traditionally use the most advanced solutions and technologies not only in the development of services for passengers, but also in business development.
This transaction allowed us to test the efficiency of smart contracts and to understand how this technology allows us to optimize business processes and increase the efficiency of document circulation. We plan to continue cooperation with Alfa-Bank in this direction,” the official said.
S7 considered as the Russia’s biggest domestic airline, manages some 70 fleets to around 80 destinations, handles numerous financial transactions in ticket selling, employee payments or supply purchases.
Also, the Russian airline are trying to streamline some of it, with Nadezhda Avdanina, director at Alfa-Bank, stating:
“Blockchain technology is an ideal solution for a business that makes transactions with a large number of participants, and if there are new participants in the transaction who do not yet trust each other.
The use of blockchain technology improves the speed and transparency of the payment process. The more market participants (banks, large counterparties, individuals) make transactions through the platform, the more transparent, faster and cheaper will be financial interactions.”
The news comes amid the Russia appears to signal a higher level of friendliness towards this space, with legislators there planning to legalize digital currencies as well as regulate ICOs.