Medici Ventures, a wholly-owned subsidiary of Overstock.com, in a statement, announced buying $2.5 million in equity in blockchain-based agricultural project GrainChain.
GrainChain, founded in 2003, developed a blockchain-based system that tracks the distribution process of harvests, helping supply chains manage their agro-products. Also, the project’s blockchain-powered financial settlement system allows all parties, including producers, buyers, and sellers to create smart contracts to secure funds throughout the process of grain transaction.
The firm, also claims that their system provides a platform that cuts out middlemen, i.e agents, brokers, dealers, etc. This can be a boon to small and medium-scale farmers who can get the desired value for their product, without paying upfront premiums to these middlemen, and also expand their business domain, to neighboring areas.
The firm, after the purchase, now has 10 percent ownership in GrainChain, with the choice of further acquisitioning, an additional 10 percent. The move will benefit GrainChain by allowing it to expand its market presence in Latin America.
Blockchain technology with its aggressive adoption in the market is being used in various agricultural applications. Last month, Sweetgreen, the US fast-casual salad chain, raised $200 million in a second funding round, highlighting blockchain as one of its key development areas. With this funding, the salad chain will focus on technology and supply chain development, as blockchain is currently the only available solution that can bring transparency to food supply chains.