Transoil International and Solaris Commodities based in Switzerland conducted a black grain blockchain pilot transaction, S & P Global reports on 12 November. Both companies are involved in trade in international agricultural products such as wheat milling, vegetable oil and flour.
The two companies completed the pilot project using the agro-commodities trading platform and the financing platform of the Swiss Cerealia startup.
Transoil and Solaris have completed a sale for a shipment of 25,000 tons of 11.5% protein black wheat on an FOB loading base from the Russian port city of Novorossiysk. This is said to be the first trade agreement based on the Black Sea grain blockchain, while the exact monetary terms of the transaction were not disclosed.
By implementing a blockchain-driven platform, the parties seek to minimize the risks and conflicts that may arise as technology allegedly improves dispute settlement and monitors the various stages of a transaction. Quotations S & P Global Cerealia:
"An independent reviewer reviewed all the important details of the blockchain trade and validated the smart contract, digital signatures, signed documents and timestamps. [The auditor] it also confirmed that the data was encrypted, that no other data was stored and that all data is updated. "
The agricultural and food products sector is gradually embracing the blockchain worldwide. As reported previously by Cointelegraph, the four largest farms in the world, commonly known as ABCD, have collaborated to digitize international grain trade using blockchain and artificial intelligence (AI) technologies. Blockchain and AI will initially be used to automate the post-trade execution processes of cereals and oilseeds, which are a highly manual and costly part of the supply chain.
In September, a national dairy cooperative in the United States – Dairy Farmers of America (DFA) – collaborated with the food fintech startup mature.io to pilot a blockchain project aimed at improving the food supply chain. Reportedly, the DFA intends to evaluate the technology and explore how the organization can benefit from its use.
Also in September, Albert Heijn, the largest Dutch supermarket chain, revealed that it uses the blockchain to make the production chain of its orange juice more transparent. Reportedly, the system will store data revealing the quality and sustainability ratings held by various producers of agricultural products, as well as information on the fruits themselves.