Although blockchain technology-based innovations in agriculture are many, the innovations are far away for gaining the global agricultural commodity trading acceptance. Blockchain application can bring unique challenges to this trading. There are two underlying problems viz., grain blending along the supply route and digital documentation lacking within the supply chain.
The Knowledge Exchange Division Manager of a financial services company called CoBank Tanner Ehmke said, “Previous attempts to digitalize trade finance with tools like bank payment obligation have been slow to take hold, raising doubts among some market participants about new digitalization efforts like blockchain. Nonetheless, banks and agribusinesses remain keen on finding distributed ledger solutions to deploy industry-wide and potentially achieve efficiencies from faster transaction speeds, less cumbersome documentation, and simpler and faster payments between buyers and sellers around the world.”
Digital solutions evolve at a rapid pace. The solutions create an environment. Blockchain technology can have a chance to become more feasible in the future agricultural commodity trading in the environment.
Bitcoin operates on the blockchain technology. The blockchain is also known as a distributed ledger technology. It facilities a broad range of computers to store records related to transactions, PR Newswire reported.
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