DEAL: first agricultural commodity blockchain transaction

Author: Karry Lai | Published: 30 Jan 2018

The blockchain platform has hosted the world’s first agriculture commodity trade transaction.

Dutch food processing firm Louis Dreyfus Company sold a cargo of US soybeans to China’s Shangdong Bohi Industry via a sales contract hosted on the Easy Trading Connect platform, which included all aspects of the deal from financing to documentation management.

Step-by-step

The transaction started with the signing of the sales contract by both the seller and buyer. The buyer then requested a so-called smart letter of credit which was reviewed by the banks. This digital letter enables participants to a trade to share information using private distributed ledger technology. Once this is agreed, the transaction be executed automatically through digital smart contracts.

Russell Marine Group and Blue Water Shipping issued the required certificates, including the bill of lading and certificates of quality and quantity. The US Department of Agriculture advised on how to include phyto-sanitary...