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The subsidiary Overstock Medici Ventures is investing in a software company that tries to store grain transactions on a blockchain.
On Tuesday, the company announced the acquisition of a $ 2.5 million shareholding in GrainChain, a nearly six-year-old company that develops software tools to help farmers and buyers in the grain industry. The purchase of Doctors gives him a 10 percent stake in the company, with the possibility of buying another 10 percent at a future date.
While GrainChain originally developed software-focused internet of things, CEO Luis Macias told CoinDesk that the company began to study the use of a blockchain register about two years ago.
At that time, the company's systems were having trouble coordinating with "thousands of trucks on a daily basis", due to the number of contracts that had to be completed and executed manually.
To combat these problems, the company is developing a blockchain platform that makes it easier to track grains and connect with a larger group of buyers, Macias said.
He explained:
"What he is doing is not only leveling the playing field for the farmer but … giving a more accurate view of where that grain comes from, how it is paid and how it moves through the market. multi-level in the industry. "
There are about 500 farmers who fly the network at this time, with another 3,000 on the waiting list, he said. The company plans to go live with the platform within the first quarter of next year.
In addition to grain tracking, the platform uses a token, called GrainPay, to facilitate payments. The dollar-backed stablecoin is meant for internal use only and is used in conjunction with contracts entered into by farmers with buyers.
For example, Macias cited contracts involving farmers in Argentina. "This is a contract that is usually carried out months in advance," he explained. "When it is executed months later, the farmer is able to deliver the grain, receive GrainPay and convert it into dollars or the Argentine peso on the date [the contract] was created."
The token is used to stabilize currency fluctuations, ensuring that neither side loses due to volatility. It is also useful for cross-border payments, Medical President Jonathan Johnson told CoinDesk.
"It makes these cross-border payments easier, quicker and easier, and therefore the cross-border aspect of this is what makes it so attractive to many farmers," he said.
Image of wheat field through Shutterstock
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