Fujitsu and Ricex Reveals World’s First Blockchain-Enabled Rice Trading Platform
On Nov. 5, Fujitsu revealed its collaboration with Rice Exchange (Ricex), a Switzerland-based startup, for the first-ever blockchain-powered rice trading platform. This move seeks to offer unparalleled traceability, efficiency, transparency, and security to the worldwide rice market worth a whopping $450 billion.
Ricex offers a digital platform powered by the blockchain distributed ledger technology (DLT) for purchasing and selling rice. As a result, it provides a system where service providers, sellers, and buyers can interact and conduct efficient trades through a digital environment. Additionally, the platform enables them to arrange for inspection, shipping, insurance, and settlement.
Inefficiencies in the rice market
Despite rice being one of the most traded agricultural products globally, it is profoundly marred with inefficiencies. For instance, paperwork characterizes transactions occurring in the market, and they are deemed slow and erroneous.
Furthermore, the presence of a wide range of rice is another challenge because each strain differs in fragrance, taste, and quality.
Blockchain platform to streamline the rice market
The blockchain platform availed by Ricex seeks to revamp the highly fragmented rice market by injecting new levels of efficiency and trust. As a result, it will create immutable and authentic data for all stakeholders, such as regulators, insurers, inspectors, shippers, sellers, and buyers.
For instance, buyers will be able to search for certified rice, and this will maximize their satisfaction rates.
The head of the Fujitsu Blockchain Innovation Center, Frederik De Breuck, noted:
“Sustainability, track and trace, and provenance are at the heart of the Rice Exchange, which is another powerful example of the real-world use cases for blockchain. Ricex has shown great vision in adopting Fujitsu’s approach to distributed ledgers as a supplementary layer in larger enterprise architectures, and not an end-to-end solution by themselves. We have placed a focus on making sure the DLT can interoperate with existing infrastructures. This is how we deliver true value from investment in this exciting new technology.”
Additionally, the DLT structure will eliminate delays and frictions in the supply chain making transparency and security inevitable in the rice market.
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