The world’s first large agricultural transactions using blockchain completed. A runaway success!

The world’s first large agricultural transactions using blockchain completed. A runaway success!

Theoretically, you can create an infinite number of applications based on the blockchain.

Every year we hear about all the great ways it can be used in business and trade. Crypto-currencies remain in focus, and multinational companies promote their solutions business optimization using the blockchain.

In 2018 for the first time in the global agricultural industry, using the blockchain, was made shipping. The transaction was carried out in a digital mode using a blockchain platform Easy Trading Connect (ETC) . ETC includes a number of contracts and certificates for international trade in agricultural products.

In the shipment from America to China involved five different parties: Louis Dreyfus Co, Shandong Bohi Industry Co., ING, Societe Generale and ABN Amro.

Company Louis Dreyfus, a multinational agricultural trading company, welcomed the use of Blockchain technology in the trade because of its efficiency. Head of commercial operations Robert Serpolet suggested that the use of the Blockchain to handle the contracts and certificates will significantly reduce the standard time that would be required for approval of such transaction.

“We appreciated the significant effectiveness, which far exceeded that which we expected.”

Using the platform ETC, Bohi has purchased soybeans from Louis Dreyfus and financial institutions (ING, Societe Generale and ABN Amro) provided the certificates required for sale. Shipping companies (the Russell Marine Group and Blue Water Shipping) also took care of needed to send documents. The Ministry of agriculture, the United States granted certificates of compliance with sanitary requirements.

Anthony van Vliet, responsible for trade and commodity Finance at ING, believes that the use of the Blockchain in this particular industry may be widely spread due to its economic advantages.

“This is important because we are in the business with large volumes and very low margins. I think that the global industry will look very different, if not months, then a year or two”.

The Blockchain technology is mainly used for conducting transactions like Bitcoin and other cryptocurrencies. However, since the pioneer was Ethereum, it can be used more technically, using the contracts.

The last example of the sale of soybeans proves that several different parties can be involved in a complicated business transaction. Using Blockchain technology, the process is accelerated, becoming cheaper, which will no doubt be attractive to other companies. The use of a blockchain platform also allows each stakeholder to be osvedomlennym throughout the process.

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