Blockchain Technology in International Commodity Trading

Abstract

: A blockchain is a decentralized, public digital ledger that uses cryptology to record retrospectively. We illustrate the impact of using blockchain technology on export/export documentation costs in international commodity trading. Preliminary results suggest that the costs related to accelerated transfer of documents from seller to buyer could be reduced by 90%. Additionally, in case of soybean trade from Jamestown (North Dakota) to China, the results suggest that using blockchain technology export costs reduced by an average of 2.3 cents per bushel (from $3.5677 to $3.5447). These results are significant for agribusinesses and other agricultural stakeholders for evaluating the benefits of adopting blockchain technology in international commodity trading.