Real-time payment is a reality for Aussie grain growers!
And so is blockchain! This week in Dubbo, NSW we made global history with the first EVER live, in-market settlement of an agricultural commodity on a blockchain between a grower and a buyer. And growers have found it "fast and reliable", according to the AFR's article about our pilot.
Right now, sellers (including farmers) aren't paid for what they deliver when they deliver, so the entire agri-supply chain is full of unnecessary risk. By paying in real-time on title transfer, we help eliminate the counterparty risk that all sellers face.
The success of this pilot has huge implications for the agriculture and finance industries. And this pilot is the first of many steps we'll be taking to de-risk the agri-supply chain for all participants.
About the Pilot
The pilot was made possible by our AgriDigital commodity management software. AgriDigital was connected to a multi-node private Ethereum blockchain network. During the pilot, we managed the nodes, acting as operator, buyer, and regulator to create an example of the ecosystem that will occur in the future.
Here are a few details of how the pilot went down:
- The pilot system captured real-time data of a 23.46 metric tonne grain sale between grower Whillock Pastoral Co Pty Ltd and buyer Fletcher International Exports (FIE)
- An AgriDigital smart contract auto-executed the settlement by:
- valuing the delivery
- verifying that the buyer had sufficient funds to pay the grower
- securing the funds in the grower’s name
- verifying the delivery
- transferring the title, and at the same time, creating a payment for the grower from the reserved funds
Currently, payment terms for Aussie grain growers range from 2 - 5 weeks, so real-time payment is a big deal.
What's Next for AgriDigital?
There's more where this came from! Moving into 2017, we'll be executing similar pilots internationally, including Canada and Europe.
Learn more about the pilot and participants from our media release here.