Given that commodity trading is highly fragmented, blockchain-driven smart contracts can transform this sector by redefining market transactions and transparency, according to a Global Smart Commodity Group (GSCG) report.
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Through the latest report dubbed “Commodity Wisdom: How Smart Contracts Are Changing Supply Chain Management,” GSCG highlights that smart contracts will be the gold standard for commodities platforms because they will render data integrity, traceability, and transparency.
Jack Bouroudjian, GSCG’s chairman, pointed out:
“The modern world is a data-driven place that has created our current digital age. Future markets will have greater efficiency in this ecosystem by using smart contracts. Capital efficiencies and data capture—along with maintaining the provenance of data—will be in the foreground for companies viewing this new landscape.”
Based on market diversification, getting precise information about commodities has become more pressing, and smart contracts seek to fill the loophole. Bouroudjian added:
“Markets are very dynamic, the more information the world learns about up and coming commodities, where they come from, and how they’re grown is the exact information which allows people to choose products efficiently and effectively.”
Since data is the lifeblood of digital transformation, smart contracts will help maintain its provenance.
Robert Alberghine, the president and CEO of GSCG, noted:
“It’s imperative to create global standards for commodities and keep industry participants accountable. We also want to proliferate the markets among the user base to make sure everyone has access to commodities.”
Meanwhile, payments giant Mastercard partnered with GrainChain to spur blockchain provenance in the commodity supply chain in North America and Latin America, Blockchain.News reported.
Image source: Shutterstock
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