Swiss Companies Sell Wheat Using Blockchain
The Swiss companies Transoil International and Solaris Commodities conducted an experimental blockchain transaction in the sale of wheat from the Black Sea region, S&P Global Platts reports.
Both companies are involved in the sale of agricultural products, in particular, flour, milling wheat, and vegetable oil. They implemented the pilot project on the decentralized platform, created by the Swiss startup Cerealia, for the sale of agricultural products.
Transoil and Solaris arranged the shipment of 25,000 metric tons of wheat from the port in Novorossiysk (Russia). The participants of the trading operation state that this is the first deal on blockchain related to the grain, grown in the regions of the northern coast of the Black Sea. The financial terms of the agreement are not disclosed.
The transaction was examined and assessed attentively by an independent auditor, who confirmed the smart contract, digital signatures, and recorded time frames, Cerealia reports. He stated that all the information is encrypted and not subject to change.
The blockchain platform allows minimizing possible risks and conflicts, as DLT helps to control different phases of the operation better and regulate disputes that arise.
Manufacturers and sellers of agricultural products are paying closer attention to blockchain in conducting transactions. Earlier, four leading agricultural companies of the world (known as ABCD), decided to cooperate in order to use blockchain technology in the cereals trade.