According to a December 4 press release, a $2.5 million stake in GrainChain, a blockchain based agricultural project, has been purchased by Medici Ventures, the arm of Overstock.com Inc. GrainChain has a blockchain-based system that allows different parties in a supply chain to track the process of agricultural harvest. It also has a financial settlement program that is based on the blockchain technology. This program allows sellers, producers and buyers to develop smart contracts and secure funds throughout the process.
GrainChain, Medici Ventures And Blockchain Technology
According to the reports from the firm, its blockchain system gives both small and medium-scale farmers a platform that they can use to safely conduct their business transactions without the need for intermediaries. These transactions can be done outside the immediate geographical area of the parties involved.
This purchase gives Medici Ventures 10% stake in GrainChain. This means that 10% of the company belongs to Medici Ventures. They also have the power to acquire an additional 10% if they want to. With this acquisition, GrainChain will be able to add South America and Central America to its market share.
This isn’t the first or only integration of blockchain technology in the agricultural sector. Many agricultural applications today have been developed using blockchain technology. Sweetgreen, a U.S based fast-casual salad chain, announced that it was starting a funding round to raise $200 million. According to the company, blockchain is one of its key development interest. The funds raised by the company will allow it to focus on supply chain and technology development. Blockchain technology is the best out of the available solutions that promises transparency in the agricultural supply chain.
Four of the largest agriculture companies in the world, ABCD, as they are commonly called, came together to work on a project that will allow them to digitize international grain trading using AI and blockchain technology. The company will use the technology to automate the trading process. The oilseed post-trade process will also be automated. This will save cost because these two processes are the most expensive in the agricultural supply chain. The announcement about the partnership was made in October.
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That same month, Medici Ventures invested in VinX. VinX is an Israeli-based tech company. The investment fund is to be used to develop a blockchain-based platform that will be used for wine futures. The company intends to create a platform like the Bordeaux futures that will require tokens to work. Trading wine futures will be enabled on the blockchain based platform.
These are just a few applications of blockchain technology in agriculture. The emerging tech is set to change the world forever. As time pases, more use cases are being discovered in various industries. Eventually blockchain technology will be as accessible as the internet.