The Power of The Blockchain To Trade Food and Raw Materials
What do you get when you get the decentralized and open platform power of the Blockchain with the power of buying and selling commodities contracts and options on real world food and raw materials? You get ChainTrade
The ChainTrade Revolution
“Worldwide trade of food and raw materials represents more than 2 trillion USD annually. We want to move this trade to the blockchain, building a decentralized platform accessible to anyone, without intermediaries, with dramatically lower fees.” - Vincent Jacques - Founder & CEO, ChainTrade
ChainTrade will move the exchanges of futures and options on food and raw materials (commodity derivatives) to a decentralized blockchain, allowing anyone to participate – small and big players. Fees to traders, buyers and sellers will decrease dramatically. Smart Contracts will replace traditional contracts and cut intermediaries.
Why the Blockchain?
Think about it... in the legacy world of Wall Street commodity and options trading, what is a major barrier that prevents more people from participating in the trading of options and futures on real world raw-materials and food? For most, it is the prohibitive cost cash reserve minimums and the huge fees to be paid to the middle men to facilitate and execute profitable trades which creates a layer of excessive risk to get an acceptable ROI. This is why the Block Chain is perfect for this type of trading. No More favored access. No minimum amounts required. No cost prohibitive fees that eat up potential profits.
The Blockchain Eliminates the High Priced Middle Men
Let’s look at to the success of BitCoin to understand how the power of the Blockchain is destined to be a powerful force multiplier for commodity futures and options buyers and sellers... In the case of Bitcoin, the blockchain is a massive, transparent public ledger, which verifies and keeps track of all bitcoin transactions. You could even go back and view the first ever transaction in the first created block, unironically named the “Genesis Block [1]”.
Apart from being one of the best and reliable triple bookkeeping systems in the world, bitcoin was the first decentralized peer-to-peer electronic cash system. This means there are no middlemen (no central banks, individuals or governments) involved in your cash transactions, which means much lower transaction fees and about a 10-minute transaction time.
In other words, because of the the blockchain bitcoin has been and will continue to be fast, safe, efficient, and has and will continue to have no central authority
Fast, Efficient, No Central Authority and No Middle Men..
For all the reasons that has made BitCoin have explosive almost unstoppable growth is the same reason why it will make more people able to enter the commodities contracts futures / option market to buy and sell. The blockchain makes it possible to make trades quicker, with half the normal brokerage house fees with no minimum reserves to buy or sell contracts...
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