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Foodchain jumps onto the European market after its foray into Latin America

May 21, 2020

Food Chain is a blockchain platform that emerged from an initiative of the Inter-American Development Bank in 2018 and is already operational in Latin America. This initiative combines blockchain technology and smart contracts to ensure fairer trade between producers and buyers while offering secure, faster and less commission payments, which means additional profit for producers.

The food chain ecosystem makes the food trade more efficient, transparent, lowers marketing costs and enables manufacturers to get a better price for their production.

Since November last year, Foodchain has entered into an alliance with Alastria, a Spanish association that is supported by more than 300 companies in the industryTherefore, in this boom that Spain is experiencing with the implementation of blockchain, it is expected that this ecosystem will serve as an example for innovators of a real use case and show its advantages.

Foodchain jumps onto the European market after its foray into Latin America
Foodchain jumps onto the European market after its foray into Latin America

The FoodChain and Alastria Association is called LACChain and mainly consists of the IDB Lab, Alastria and companies such as Everis, Consensys, the Enterprise Ethereum Alliance, the MIT Media LAB or Hyperledger. From November to now they have contracts with public administrations, investors, companies and associations of Spanish manufacturers.

This foodchain start-up, which has led to at least ten countries in Latin America, will be seen as part of the webinar organized by Alastria for this May 20th. The advantages of this platform go beyond the creation of a trading room. The purpose of the platform also implies having its own token, which allows manufacturers to fund production at a price that is higher than production costs.

In addition, the purpose of the platform is to integrate both manufacturers and consultants in one place. We offer the best advice to get better results and we provide suppliers of agricultural products such as fertilizers and seeds.

The ecosystem currently works in countries such as Peru, Mexico, Argentina, Colombia, Costa Rica and Panama, among others.s, and it already has at least 30 producers and more than 35,000 hectares that use this platform. By purchasing the token, the buyer pays part of the production at the start of the transaction and the rest once the production has been delivered. Currently, the minimum fee for the ecosystem is half a product container per purchase through smart contracts.

The innovation of this ecosystem also includes big data, IoT, machine learning and artificial intelligence. The system begins installing sensors in the crops and surveillance drones are used. The data is analyzed using big data and machine learning tools to determine the condition and prediction of the two-year harvests. Blockchain is used to certify processes and generate tokens. So far, tokens have been issued privately to carry out the first transactions in which every farmer who is part of the network has a digital identity associated with his country.

The main advantage of this ecosystem is the decline of third parties who are burdening the market with premiums. This is why the acceptance of the network in Latin America has been so successful. In addition, the frequent use of cryptocurrencies allows manufacturers to familiarize themselves with the crypto world, so it is not excluded to create your own StableCoin.

LACChain’s goal is to provide knowledge to serve the various initiatives emerging in countries to develop national blockchain ecosystems in the region. They will do this by offering technological advice, stimulating the market and performing impact data analysis to democratize the use of this technology.

Acceptance in Spain is expected to be the same or higher than in Latin America. and there Alastria plays a leading role. The IDB knows that thanks to the momentum it has given this ecosystem in a short time, it has had an impact and hopes that LACChain will make adaptation more efficient and enable the creation of a more integrated ecosystem that enables better market management.

According to Pablo López, founder of Creatiblock for BlockchainEconomyThe platform has established contacts with public administrations in Spain and other organizations in order to achieve higher volume in the middle of a consortium at the end of the year.