Coffee is on the chain! The first successful coffee transaction on the chain, will agricultural products embrace the blockchain revolution?

What happened?

Agridex, a platform for tokenization of real assets (RWA), recently completed its first 'on-chain coffee transaction'.

This transaction is the export of coffee from the UK to South Africa. Through on-chain transactions, not only are the handling fees much lower than traditional cross-border agricultural commodity transactions, but instant settlement can also be achieved.

Agridex focuses on tokenizing agricultural products to help investors, farmers, and governments reduce costs and increase profitability.

Click here for more information about "What is RWA?".

Agridex completes the first on-chain coffee transaction

Agridex, a real asset tokenization (RWA) platform on the Solana blockchain, has completed its first on-chain coffee transaction. The purpose of this transaction is to export coffee from UK-based brand Tiki Tonga Coffee to South Africa, with the South African buyer paying in local currency South African rand ($ZAR) and settling in pound sterling on the Agridex platform.

According to foreign media reports, the transaction fee for this transaction is only 0.5%, much lower than the 5% to 7% rate of traditional cross-border agricultural commodity transactions. In addition, settlement is almost 'immediately completed', compared to the 5 to 12-day cycle of traditional systems, the efficiency has significantly improved.

Tiki Tonga Coffee founder Brad Barritt said that Agridex not only saves transaction costs, but also simplifies document management and compliance processing costs, reducing the operational pressure on enterprises.

How does AgriDex work?

AgriDex focuses on tokenizing agricultural products. In simple terms, the platform will convert products such as coffee, livestock, and olive oil into digital tokens, enabling them to be traded on the blockchain. Each transaction will generate an NFT (non-fungible token) to record transaction-related information, such as product prices and payment details.

The goal of AgriDex is to help investors, farmers, and governments reduce costs and increase profitability. Its co-founder, Henry Duckworth, said, 'AgriDex has the potential to save billions of dollars in costs for all stakeholders annually, and we are just beginning to explore this potential.'

He also emphasized that Solana's fast settlement, high throughput, and low transaction fees are very suitable for the tokenization of agricultural products.

Further reading: Blockchain helps agriculture! AgriDex trades hundreds of bottles of olive oil on the first day of launch, aiming to reform cross-border sales with 2 advantages

Why is the agricultural industry one of the biggest beneficiaries of tokenization?

The so-called Real World Asset Tokenization (RWA) is the process of transforming product on-chain into tokens, allowing more investors to access these assets, reducing investment barriers, and helping businesses to transact in a more cost-effective manner. The agricultural industry may be one of the biggest beneficiaries.

Jon Trask, CEO of agricultural technology company Dimitra, stated in an interview with Cointelegraph that integrating agriculture into blockchain can solve pain points such as low efficiency, lack of technical support, and insufficient supply chain transparency.

Similarly, Dakvos, co-founder of AgriDex, also mentioned that blockchain can help farmers sell their products directly to buyers, eliminating expensive intermediation costs and improving transaction efficiency.

If the regulatory framework is gradually improved in the future, the "tokenization" technology is bound to continue to accelerate, and as the scope of adoption expands, the transformation of agricultural enterprises through blockchain will become more and more popular.

This article is authorized to be reproduced from: "Web3+"

Original Author: Li Pengrui

Original Title: "The first successful 'on-chain coffee' transaction. What are the benefits of using blockchain to trade agricultural products?"

"Coffee is on the chain! The first successful coffee transaction on the chain, will agricultural products embrace the blockchain revolution?" This article was first published in "Crypto City".