Agrocorp and Cargill, two international giants in the agriculture industry, have made a deal with Indonesia through blockchain technology. The agreement involves the trading of $12 million in wheat being shipped from North America to Indonesia.
Many Moving Parts Organized By Blockchain
The transaction itself was made through a blockchain platform called dltledgers, based in Singapore. The dltledgers platform itself leverages the Hyperledger Fabric as a base for its system.
An important thing to note is that the deal doesn’t just entail these to actors. An international cooperative bank, going by Rabobank, will be partnered in the transaction. Alongside them stands the Amarante ship owner firm and the Transmarine shipping giant.
Cutting Down On Admin Time And Fees
The trade itself was settled on the 1st of April, 2020, after five days of negotiation. The trade’s blockchain format has reported saving time due to manual processes, as well as increasing the overall transparency and security of the transaction. The transaction itself had a reduction in paperwork, and completely nullified the complex processes of a traditional trade settlement.
The key facilitators of Rabobank, Olivier De Jong and Mario Cortinhal, stated that the time they had to spend processing various documents had been cut in half. This was due to the use of blockchain technology to facilitate trade.
Mainstream Integration Inevitable
The blockchain platform of dltledgers has managed to facilitate more than $2 billion in trades, doing so for 45 banking partners, 400 companies, thousands of partners situated in the crypto ecosystem. Samir Neji, the CEO of dltledgers, stated that the significant cross-continent wheat trade serves as proof of dltledger’s ability to enter mainstream markets as an effective solution.
Agrocorp, in turn, has been working with blockchain-based trades for more than a year, now. Abhinav Vijay, the Sustainability Manager of the company, has been reported in giving a public statement about the company’s use of blockchain. Vijay explained that, when one considers the logistical challenges of moving physical documents across the globe, as well as the current world climate, this will just be the start in the use of blockchain. Vijay explained that the company hopes to execute more trades through this platform.
This trade, being of such magnitude, stands as an important proof-of-concept for the crypto industry at large. With this deal as validation for the efficiency of blockchain technology, the mainstream world will start to take notice of it more and more. Cryptocurrencies are the future, but it seems that the technology it’s based on, blockchains, and distributed ledgers, will see widespread adoption before the cryptocurrencies do.