Blockchain applications now will contribute to making international grain trading more transparent and efficient. And this is going to be possible because the four largest agribusinesses in the world are collaborating to digitize and standardize international grain trading with the help of most advanced technologies including artificial intelligence (AI) and blockchain.
The four companies or the ABCD’s of global grain trading are Archer Daniels Midland Co, Bunge Ltd., Cargill Inc., and Louis Dreyfus Co. According to the ABCD group, their effort introduces more efficiency and transparency in the international commodities trade and also contributes to reducing costs. These companies are aiming to replace a system that has been relying traditionally on invoices, manual payments and paper contracts with the latest and most automated electronic system.
The four companies are yet to disclose more details about how soon they are rolling out the new system. Many trade analysts believe that these companies are trying out new avenues of technology to combat the competition they are facing from the industries and companies that are using blockchain in supply chains to make them more traceable. The blockchain is a shared record of data which is maintained by computer network on a decentralized platform and hence does not require any intermediary or third party.
According to the CEO of Louis Dreyfus, Ian McIntosh his company completed its blockchain applications-based first agricultural commodity transaction in January, Reuters reported. Initially, the companies are planning to use AI and blockchain to automate oilseed and grain post-trade execution process.
It is a highly manual work and is one of the costliest parts of the supply chain. Integration of blockchain can certainly help in reducing the cost and will make execution much quicker.
ABCD intends to integrate blockchain applications on various levels of supply chain including customer experience, shipping, and storage, Cointelegraph reported. According to McIntosh, blockchain can contribute hugely in developing the agriculture industry as the technology has the capacity to reduce the time spent on data processing and manual document and can generate efficiencies.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]