Search
Close this search box.
Search
Close this search box.
Search
Close this search box.

The technology in the field and the opportunity behind commodity-backed tokens!

It is not only in the propaganda within the evening news or as the central theme of the most watched soap opera on TV that we will glimpse the importance of high technology in the field; it is present in all aspects of the business, such as the invisible tokenization of agribusiness.

Agribusiness is, without a doubt, the market with the greatest expansion and success in terms of numbers in Brazil in recent decades. To give you an idea, the sector’s GDP jumped by 310% between 2022 and 2022, from US$122 billion to US$500 billion.

This corresponds to Argentina’s total GDP, an impressive number that has the prospect of being continually surpassed, but technology needs to enter the field more and more.

International competition is intensifying and to meet international export standards, it is necessary to invest in new technologies, with more effective and agile production and logistics chains.

The token plays an essential role in operational efficiency and profitability, generating more agile and profitable businesses.

How can all this happen?

BLOCKBR, a company that develops tokenization infrastructure, will show how blockchain in the field helps to create the best harvests of results!

WHY TECHNOLOGY IN THE FIELD IS ESSENTIAL

Technological innovation in the field is essential for important reasons that impact agriculture, livestock and global sustainability. Let’s talk about some of them.

MORE PRODUCTIVITY

Technological development in agriculture, using equipment with embedded technology – agricultural drones, intelligent irrigation systems, modern tractors and harvesters – increases efficiency and productivity at all stages of the agricultural operations chain.

BETTER FINAL PRODUCTS

Biotechnology and genetics make it possible to develop crops and livestock that are more resistant to diseases, pests and more adverse climatic conditions, resulting in products with greater nutritional value and less use of chemical pesticides in agriculture and livestock.

Fall of the dollar: is it time to celebrate or hold back? Look here!

PREPARING FOR THE GLOBAL FOOD CHALLENGE

We live in times of increasingly surprising and frequent climate change and food production suffers directly from it. Technology in agriculture allows us to face possible crises in food security, ensuring efficient production for populations.

IMPROVING MANAGEMENT AND PROFITABILITY

Agribusiness is one of the largest and most complex production chains on the market, made up of several actors, long distances and climate challenges. Good management of the agricultural ecosystem is the central aspect of success.

Seeking constant improvement of processes and more effective forms of negotiation is essential to add differences to products and maximize profits.

Asset tokenization could be the key to achieving these goals!

WHAT IS BUSINESS AND PROCESS TOKENIZATION

Tokenizing means creating encrypted digital representations for businesses and processes within companies. It is a technological innovation with a series of benefits compared to conventional forms of management and negotiation.

  • It is possible to split an asset into a large number of tokens which, with lower unit prices, reach more potential investors;
  • Total security with the most modern protocols, ensuring the protection of sensitive data from customers, suppliers, employees, processes and commercial transactions;
  • Simplicity to buy tokens from a fractional harvest of grains;
  • Total efficiency with the smart contract that 100% electronically manages a sales offer or the entire agricultural production chain.

THE ROLE OF TOKENS IN AGRIBUSINESS

THE ROLE OF TOKENS IN AGRIBUSINESS

COMPLIANCES AND CERTIFICATIONS

Tokens can represent certificates, licenses and other forms of regulatory compliance in the agricultural sector, simplifying processes for proving compliance with standards and regulations.

TRADES WITH MORE LIQUIDITY AND PROFIT

It is possible to tokenize future harvests and finished products to raise funds more quickly and finance projects or generate a new negotiation channel in addition to traditional processes, helping to increase revenue.

Some factors compete to generate more profitable business with tokens.

  • The fractionation that allows more people to invest in agribusiness and also earn more profit with better pricing on fractions of tokens;
  • A person can purchase tokens from a soybean harvest or a tokenized coffee harvest at any time and day of the year as the token offering platform works uninterruptedly;
  • Token sales are peer-to-peer, directly between agricultural producers and investors, reducing operational costs.

These are the so-called tokenized commodities that we will talk about later.

INCOME FROM OWNERSHIP AND FRACTIONAL ASSETS

With the tokenization of real assets, it is possible to fractionate agricultural units, herds and crops, generating revenue and remunerating tokenists with the profits obtained from operations with the assets – a simpler way of investing than in company shares.

GOVERNANCE OF PROCESSES AND PRODUCTION CHAINS

With blockchain and smart contracts, it is also possible to generate management tokens, used to create fully electronic management in terms of process mapping, set of goals, indicators and metrics, raising the level of operational management.

PRODUCT TRACEABILITY

Tokenization adds a lot of value to agribusiness with the visibility and transparency of the origin of agricultural and livestock products: tracking all stages, from the field to the retail store, through blockchain records, promoting the authenticity of the products.

UNDERSTANDING COMMODITIES-BACKED TOKENS

Commodity-backed tokens are the use of technological innovation with the aim of creating a more efficient way to trade, transfer and invest in commodities, applying all the benefits of blockchain technology – decentralization, security, transparency and others.

  • They represent ownership of a certain quantity of a physical commoditygold, silver, oil, grains, beef herds and others – and the appreciation it will have during the time you own it;
  • They are valued according to the price of the commodity linked to them;
  • There is no physical possession of the product but the right to income in a similar way to shares, with the advantage of not dealing with the challenge of storing the commodity;
  • The issuance and operation of commodity tokens is generally backed by physical reserves of the corresponding commodity in a trusted issuing entity. The total quantity of tokens in circulation must correspond to the actual quantity of the commodity held in stock.

These tokens can be used to diversify investment portfolios, to trade in specific markets, or for purposes of hedging against price movements.

TOKENIZE YOUR ASSETS WITH BLOCKBR!

Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.

Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.

Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?

Come and talk to BLOCKBR.

We have the best token offering strategy on the market!

BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.

For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks

share this content

You might like it too