Black Sea Wheat Traded on Blockchain-Based Platform

Black Sea Wheat Traded on Blockchain-Based Platform

The commodity trading industry has, in recent times, seen a spike in the number of companies deploying blockchain technology for day-to-day business. The latest companies to get onboard this moving train are Solaris Commodities and Transoil International. Both of these companies “used blockchain to settle the trade of 25,000 metric tons of 11.5 percent protein Black Sea Wheat that was shipped from the Russian port of Novorossiysk.

According to a report by S&P Global, the companies made use of a blockchain-driven “agri-commodities trading and financing platform” built by Cerealia, the Swiss firm, for the transaction. The report goes further to add that the Black Sea Wheat is being traded via blockchain for the first time ever. There are, however, no reports on who settled the financial aspect of the transaction or the worth of the cargo.

This news should not be surprising to followers of blockchain technology. By this action, it is apparent that the two companies are looking to reap the efficiencies associated with using blockchain. The global commodities industry has for long been lampooned for still being stuck in the dark ages. It seems the blockchain could breathe new life to the trade and bring about a much-needed change.

As for the blockchain-based platform, Cerealia has this to say: “An independent auditor has reviewed all the important details of the trade from the blockchain and validated the smart contract, digital signatures, signed document, and timestamps. The auditor also confirmed that data has been encrypted, that no other data has been stored and that all data is up to date.”

Why is the logistics/commodity trading industry embracing blockchain?

Most countries still use the trade finance system that is based on paper. Apart from being cumbersome and time-wasting, it is also complex. Blockchain, on the other hand, gives all parties involved in a shipment instant access to monitor it in real-time. The benefits of this are that it simplifies the tracking and ensures that disputes are quickly resolved as they arise.

To summarize

Solaris Commodities and Transoil International have become the latest firms to deploy blockchain technology to commodity trading. The two firms settled a trade of 25,000 metric tons of 11.5 percent protein Black Sea Wheat with blockchain. The goods were shipped from the Russian port of Novorossiysk. Cerealia, a Swiss firm, developed the blockchain-based agri-commodities trading and financial platform used by both companies.

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