Commodities on the blockchain: Up until now, traditional commodities trading has hinged largely on the use of vast paper trails in order to execute, authenticate, and process individual transactions. However, with the rise of blockchain technology, there now exists a plethora of digital options that can help streamline these operations. This potentially disrupts many long-established business models that have been in place globally for a long time.
What are commodities?
In their simplest sense, commodities can be thought of as basic goods that are fungible in nature, i.e. exchangeable in lieu of other items of a similar nature. As far as examples of commodities go, we can take into consideration items like cattle, corn, dairy, crops, wheat, oil, precious metals, etc.
On a technical front, it should be noted that commodities are required in the creation of various essential goods and services. And, while their quality may vary a bit from one producer to another, when it comes to their trade/exchange, they need to meet certain international standards – referred to as a ‘basis…