In the past few years, blockchain technology has been integral in bringing change in a number of industries. It has dismantled the way things would work and replaced it with a decentralized network that emphasizes transparency and security. It also stores data in an append-only format, which makes it difficult to manipulate records, thereby improving accountability within the system. Moreover, with a few blockchain protocols offering smart contracts functionality, it is possible to automate processes and increase overall productivity.
However, the benefits of blockchain are yet to reach the commodity trading sector. This sector, which forms the backbone of most of the other industries, is still stuck in a time period where the paper is king. NewzoneEX plans on changing this outlook by adopting blockchain technology to create a robust platform to address the different shortcomings of this sector.
Let’s take a look at how NewzoneEX will use blockchain to drive change in commodity trading:
- Replaces Paper-heavy Documentation: As mentioned before, the present sector is heavily invested in paper-based documentation. This practice does not allow data mobility and also increases its vulnerability to damage or loss. On the other hand, blockchain will store all data in an encrypted format and makes the data accessible to everyone with permission.
- Connects Fragmented Supply Chain: Commodity trading is not a linear process and involves several levels of transactions and an equally large number of agents. This makes it difficult to track orders effectively and increases the cost manifold. In contrast, on a blockchain-backed platform, all the participants will be connected on a single platform. This will dramatically improve connectivity, communication, and productivity.
- Eliminates Lack of Transparency: Building upon the fragmented supply chain and paper-based documentation, it is difficult for one to organize processes systematically. Moreover, there are instances where some agents engage in insider trading for personal gains. But, with blockchain, all of this is solved as information is available in an immutable fashion, and any malpractices can be identified with ease.
- Resolves Problems in Regulation and Authentication: Regulating tasks and authenticating items in a splintered industry is next to impossible. However, blockchain makes things smoother by systematically recording data and using smart contracts to coordinate different activities.
- Removes Room for Fraud: With no proper implementation of checks and balances, some individuals can take advantage of the system. There are many instances where miscreants have evaded taxes, forged paperwork, cheated counterparties, among other offenses. But, in a blockchain network, committing these offenses is not a possibility as it is very difficult to manipulate stored data while also allowing authorities to track wrongdoings effectively.
Thus, it can be seen how blockchain systematically addresses the problems plaguing the commodity trading sector. NewzoneEX will develop a multi-faceted solution that will be powered by the Quorum Blockchain. This solution will not only enable the digital exchange of commodities but also solve the issue of certification, collection of fees, settlement of payments, regulation, supply chain, and much more. The NewzoneEX ICO is arriving soon, so register yourself today to receive all the latest updates!