Medici Ventures, the blockchain branch of retail giant Overstock, has purchased a $2.5 million equity in agricultural blockchain project GrainChain.
Established in 2013 by the founders of SiloSys, GrainChain provides smart and automated tools for farmers, buyers and grain silos to buy, sell and track grain throughout the transaction process. Its three-part blockchain system eliminates the potential for human error and cheating throughout the process, as well as gives accurate tracking of harvests in their journey from farm to table, eliminating the potential of fraud.
“The blockchain-based financial settlement system allows grain producers, buyers and sellers to create smart contracts to secure funds throughout the grain transaction process,” GrainChain said. “By using Internet of Things (IoT) devices that accurately measure grain weight and quality, GrainChain eliminates the potential of errors from human error or bad actors.”
Medici Ventures’ acquisition accounts for 10 percent of the company, with an option to further its acquisition for an additional 10 percent at a later date. GrainChain said that the funds will allow them to expand their market share in Central and South America.
“We are making the grain transaction extremely efficient, transparent, safe and secure, and we’re giving not only the farmers but also the buyers a safe marketplace to do business in,” said GrainChain co-founder and CEO Luis Macias. “At the end of the day, we’re just leveling the playing field for the farmer, giving them much more power and control over the selling process.”
“Agriculture is the backbone of our global civilization, but producers operate on razor-thin margins and are up against a host of factors far beyond their control,” said Jonathan Johnson, president of Medici Ventures. “GrainChain helps to support those producers by simplifying and securing the measuring and payment process and bringing unprecedented transparency to the industry.”
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