GrainChain Uses Blockchain to Unite Honduras' Coffee Industry
A full suite of blockchain-based and IoT tools promote trust among all participants in one of the world's leading coffee-producing countries and provides greater accuracy across the entire supply chain
MCALLEN, Texas, Sept. 24, 2019 /PRNewswire/ -- GrainChain, a software platform that creates blockchain and internet-of-things (IoT) innovations for the agricultural industry, has signed agreements with stakeholders from every part of the coffee industry in Honduras to deliver its commerce platform that helps minimize risk, improve conditions and encourage reinvestment. GrainChain is working with groups across the coffee growing process, bringing the entire supply chain together on a single platform for the first time.
Honduras is one of the world's leading producers of coffee, but the industry in the country has been in a state of crisis for the past several years due to falling prices and difficulties with sustainability. GrainChain's unprecedented step in uniting parties across the coffee supply chain in Honduras accomplishes three primary goals that will help guide the future of the industry:
GrainChain's single blockchain-driven platform will improve the trust between farmers and banks, ultimately opening more services for people in remote areas who were previously unbanked.
The full suite of connected IoT tools will help improve accuracy throughout the entire process for all stakeholders.
Drastically improved clarity throughout the entire process will protect the farmers and assure they receive quick and proper payment.
GrainChain's platform includes a digital wallet, enabling remote and unbanked farmers to apply for loans to bring their farms and crops up to higher standards. Banks can then direct the use of that money so that it can only be applied to the intended purposes, which helps mitigate and control risk. GrainChain's unchangeable smart contracts further improve traceability and operational logistics for vendors and buyers.
"Growing coffee is such a widespread process with so many variables that it has traditionally been impossible to get people on the same page, which lowers trust across the entire supply chain," said Francisco Fortin, general manager of Confianza SA-FGR, a major insurance provider to the agriculture industry. "With GrainChain's blockchain platform, we can assure that all parties are able to participate in the product with much greater visibility and minimized risk through every step."
GrainChain's implementation across the entire supply chain will further benefit stakeholders in the Honduras coffee industry in the following ways:
Banks will use GrainChain to manage thousands of loans to small- and medium-size farmers, including using the digital wallet for unbanked farms to enable loan disbursements.
Insurance companies will use GrainChain tools to simplify and automate underwriting of farmer loans backed by banks and the federal government.
Co-ops and growers will benefit from GrainChain's advanced traceability tools, farmer management, logistics management and farmer loan programs.
National exporters and marketplace buyers benefit from using GrainChain's smart contracts for settlement, traceability, purchasing commodities and instant transfer of title.
"Our platform provides guarantees and visibility through the entire process, which empowers growers and vendors while reducing risk to bankers and buyers," said Luis Macias, CEO of GrainChain. "We believe that building agricultural industries with blockchain tools will encourage reinvestment and improve quality throughout by giving people a single platform they can trust."
GrainChain's products give farmers access to their commodities via mobile apps, enabling them to see their inventory in real-time and giving them the ability to make decisions on the field. Through its suite of blockchain-based and IoT products, GrainChain improves efficiency, creates complete transparency and reduces human entry errors throughout the state. The commodities' measurements – such as quantity, quality and humidity – are captured by one of GrainChain's products and applied to their appropriate inventory, which enables immediate contract settlement.
GrainChain is a keiretsu company of Medici Ventures, the blockchain subsidiary of Overstock.com, Inc. (NASDAQ:OSTK). Medici Ventures was founded in 2014 and is focused on advancing blockchain technology in existing markets to democratize capital, eliminate middlemen, and re-humanize commerce.
About GrainChain GrainChain's innovative platform using blockchain, IoT and advanced logistics systems expedites agricultural settlement payments to farmers and suppliers while providing the immediate availability of tradable commodities to buyers.