Solaris and Transoil International recently conducted a blockchain-based trading of Black Sea wheat on the platform of Cerelia as a part of the trial deal. The aim of the joint venture is to ensure that the risks during trading are minimized and all the possible conflicts that are a part of regular storage data are settled smoothly.
As per the report, the two companies traded Black Sea wheat Russian 25,000 mt. parcel containing 11.5 percent protein wheat at Novorossiisk on a FOB basis with the help of blockchain technology. The delivery meant for December was traded at an undisclosed price. According to the developer of the platform, this Black Sea wheat was a first of its kind deal.
With the help of blockchain, it is possible to display the transactions that previously took place chronologically and publicly. The trading platform is expected to erase most of the conflicts that usually arise while storing data.
The details about the contract or the loading rates/price are not visible to the general public during blockchain trading. But traders can see the details of the trade that has taken place as well as the terms of contracts that are uploaded on the system in an encrypted format.
In its press release, the Lausanne, Switzerland-based Cerelia startup stated that all the important details about this trade have been reviewed by an independent auditor including digital signatures, smart contract, timestamps, and signed document, reported S&P Global.
The press release also says that the data used during blockchain trading is encrypted and is up to date. The co-founder and CEO of Cerelia, Andrei Grigorov said, “The next stage is to support emerging market traders in their local domestic currencies using fintech,” More and more companies and industries are venturing into blockchain implementation. According to Cointelegraph, apart from the logistics and healthcare industry, agricultural and food sector has also slowly come forward to embrace blockchain.[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. ]