Keiretsu agricultural startup GrainChain, supported by Medici Ventures, has signed agreements with stakeholders of the coffee supply chain of Honduras to accelerate the coffee business on its blockchain-powered platform.
The Association will bring the entire coffee supply chain cluster on the single platform under the umbrella of GrainChain. The agreement will also monitor the export trade and production process of the coffee beans.
During the launch, GrainChain CEO Luis Macias said, “the launch is starting with a 2 percent sliver of Honduras’ 7-million-bag-a-year export industry – equivalent to 10-15 percent of the organic fair trade market.”
Honduras – among the world’s top coffee producers
Honduras is one of the prominent coffee producers in the world. Coffee has been a prominent traditional export commodity of the country. Nevertheless, under certain circumstances, the coffee business is in peril from the last few years. To name the few among several reasons, dwindling prices and sustainability issues prevailed over the past time.
Objectives of the smart contract
The agreements aim to acquire three main objectives:
- GrainChain will act as a mediator to build trust between the manufacturers and the financial organizations (banks).
- GrainChain will work towards improving the commodity database and its availability to the chain.
- Through innovative technology, more efficiency and transparency will be achieved in the entire trading process reducing human errors.
Medici Ventures, a blockchain subsidiary of an online retail company Overstock, was founded in 2014. It provides blockchain solutions eliminating the loopholes in the conventional trading system.
GrainChain was founded in 2003; it offers financial settlements within the agricultural community. Through smart contracts, it has been acting as a negotiator streamlining the commodities market. It also curbs corruption and scams through its standardized accreditations.
GrainChain sighed this association after its successful combined project with the Mexican state of Tamaulipas. It played a substantial role in augmenting their grain tracking system.
It will provide support to remote farmers to get loans from the banks. The farmers will be allowed to access the company products through a mobile app. It will also facilitate them to trace their online inventory.