Home News Russian company launched a grain-trading blockchain platform

Russian company launched a grain-trading blockchain platform

Russia-based Direct Farm company announced the release of a free b2b blockchain platform for agricultural producers, service companies and buyers.

The platform will be launched on August 22. According to the company’s representative, “the planned volume of investments will reach 100 million rubles”.

“As of today, the cost of creating the platform’s alpha-version amounted to 10 million rubles. The projected expenditure on infrastructure development in 2018-2019 is estimated at 30 million rubles, plus 60 million rubles are to be spent on platform promotion and clients’ servicing,” – he added.

According to the developers, the blockchain technology, namely, its “undistributed” version, is being currently used “solely as a data warehouse”, whereas the shift to a distributed ledger is planned for the future. The developers of the platform also plan to implement full transaction data encryption and release a number of smartphone-compatible applications.

“We see launching an ICO associated with the issuance of tokens backed by grain sales transactions as one of the main directions for our development,” – they specified in Direct Farm.

First and foremost, the platform will be shaped to contest monopoly maintained by large companies and combat corruption in the industry. It is also to help small and medium-sized businesses find counterparties and provide for transparent pricing.

Key market participants will be able to use the platform for free. The monetization will be maintained by service companies and the related goods and services producers. The company also foresees profits from ad placement and offering “premium” extensons for advanced user experience. There are also some plans for creating a “new financial tool based on grain delivery obligations”.

The platform will remain free for the main market participants, and monetization is planned at the expense of service companies, manufacturers of related products and services. The company also plans to earn money on advertisers and offer a “premium” version to improve the user experience with enhanced functionality, and in the future – to offer the market “a new financial instrument based on grain supply commitments.”

The project’s team hopes to get a 30% Russian market share in five years, while also forming a secondary financial tools market and launching a new real goods-backed cryptocurrency similar to the Mexican altcoin, which is backed by Habanero hot chili pepper.