It seems that the blockchain technology can be applied everywhere as we are seeing more and more projects based on this new technology bringing innovations to the existing industries and even creating new ones. The cryptocurrencies remain in the center of attention, but numerous companies around the world are developing their own blockchain solutions in order to improve their business.
As a result, we are seeing new turning points in the most important industrial fields this year. When it comes to agriculture, we have seen the first cargo delivery of soya performed using the blockchain technology. According to Reuters, the trade was executed digitally by using the Easy Trade Connect (ETC) blockchain platform. ETC created a series of contracts and certificates necessary to perform the international trade of agricultural products.
The shipment from the United States to China involved five different parties, including Louis Dreyfus Co, Shandong Bohi Industry Co, ABN Amro, ING and Societe Generale.
Louis Dreyfus is a multinational company operating in the agricultural industry. The company supports the use of the blockchain technology in their sector because it improves the efficiency of the processes. Robert Serpollet, the head of operations of Louis Dreyfus, estimates the use of the blockchain technology to process and verify the contract has considerably decreased the usual time necessary to authorize this kind of trade. Serpollet said: “We have noticed a significant increase in efficiency, far beyond what we had expected.”
Using the ETC platform, Bohi bought the shipment of soya from Louis Dreyfus, while the banks provided credit certificates necessary to execute the sale. Freight forwarders were also involved and they have dealt with the documentation necessary to prepare the shipment, while the Ministry of Agriculture of the United States of America issued a sanitary certificate.
Anthony van Vliet from ING thinks the use of the blockchain technology in this specific industry could be widely accepted because of the savings it makes: “This is a solution, since we are involved in a business that has high turnovers and low payments. If not in a few months, then in a year of maximum two years, I think the world in this environment will look completely different.”
The blockchain technology is mostly used as a basis for transactions, such as bitcoin and other cryptocurrencies. However, with the development of Ethereum, it can technically be used for a lot of other purposes, such as creating contracts that can be executed on blockchain networks.
As we have seen in the aforementioned case, a large number of different parties can be involved in the complex business processes around the transactions. By using the blockchain technology these processes are faster and cheaper, which will involve other industries and sectors as well. Blockchain platforms protect all the involved parties and inform them during the entire process.