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Transoil International and Solaris Commodities are the last companies to use the blockchain for commodity trading. The two companies used the blockchain to regulate the trade of 25,000 tons of 11.5% black protein sea grain that was shipped from the Russian port of Novorossiysk.
On 12 November, S & P Global reported that the two companies used a blockchain-based agri-commodity trading and financing platform that was constructed by the Swiss company Cerealia for the transaction. According to the same report, this is the first time that the grain of the Black Sea has been exchanged via blockchain. It is not yet known what value the load was worth, nor who regulated the financial side of the transaction.
Like many companies in the global supply chain, Transoil and Solaris probably want to take advantage of the efficiencies that blockchain has the potential to create. Global commodity trading is archaic in many ways, and blockchain could be the technology that changes a business that has remained mostly static for centuries.
Blockchain makes sense for raw materials
By all accounts, the blockchain-based trading platform created by Cerealia has worked well.
S & P Global reproduced this declaration of Cerealia in its report, "An independent reviewer reviewed all the important details of the trade from the blockchain and validated the smart contract, the digital signatures, the signed document is timestamp. (The auditor) also confirmed that the data was encrypted, that no other data was stored and that all data is updated. "
Unlike the complex paper-based business finance system that is still used in most countries today, blockchain provides immediate access to all parties involved in a shipment. This can help resolve disputes as they arise and could simplify tracking during the shipping process.
Growing worldwide
The global food logistics network is complex. Countries have the ability to connect over great distances, but keeping track of loads can be difficult.
Commonwealth Bank of Australia (CBA) has developed its blockchain-based tracking that integrates commercial finance, which was tested at the start of this year. The CBA worked with an almond grove in Victoria, Australia, to send almonds to Hamburg, Germany.
The shipping process involved a number of companies, which had real-time access to the almond position as they moved across the planet. Integrated CBA and Internet-of-Things (IoT) tracking system based on their blockchain-platform, which makes chain-of-custody monitoring much easier.
The implementation of the real world is here
Walmart is another important company that is moving towards the use of blockchain on a daily basis.
As one of the largest food retailers in the United States, Walmart has to keep track of a huge amount of products. So far this has been difficult, which is why they are asking all their green leafy vegetable suppliers to use a blockchain tracking platform designed by IBM.
Instead of having to dive into a paper-based document retention system that can literally take days to track down where the lettuce comes from, the new IBM blockchain platform does the same thing in seconds. Not only that, but also allows Walmart to identify other stores that may have the same products for sale.
There are periodic outbreaks of food poisoning that could be mitigated by the system that Walmart is deploying, which means green leafy vegetables may be the first of many types of food to be brought onto the blockchain.
Making the food distribution system safer and more efficient is a great thing from a business point of view, but saving lives makes the adoption of blockchain a breeze.
Incredible speed
Depending on how you want to measure your age, blockchain has at most a decade. Realistically, the technology is much younger than that, which makes the speed with which it is entering the global market extremely dramatic.
With each new use case that shows the value created by blockchain, the confidence that must be created increases. The next few years will be very interesting for blockchain development and companies that adopt it in advance will probably stand up to take full advantage of an amazing technology that is becoming a reality.
