The current state of the commodity trading market is chaotic, to say the least. With the phenomenal advances in technology, will there be hope for this industry? Blockchain technology has entered the world with massive potential to transform industries. What are the problems that can be solved by this futuristic technology in the commodity trading sector?
Challenges faced by the commodity trading sector
Every industry encounters problems on a day-to-day basis. In a sector as wide-reaching and complex as commodity marketing, there are bound to be some obstacles that affect efficiency and accountability. Let’s have a look at a few of the most common challenges that the commodity trading industry faces:
Lack of efficiency in Supply Chain
The traditional supply chain relies on paper trails to chronologically document all transactions. It is an unorganized method that makes it difficult to keep track of everything that goes on in the chain. Data could get misplaced, manipulated, or removed unethically in the process.
Inefficiency in Payment Settlement
The delay in transactional payments is a frequent occurrence. This is due to the lack of coordination between different intermediaries. Moreover, transactions on most exchanges are settled only at the end of the day. Traders find this system inefficient.
Hindrances in Securing funds
It can be challenging for small-scale enterprises to obtain funds because of a lack of proper protocol. They are treated with hostility by the commodity trading market due to this. It creates a kind of discrimination that adversely affects economic growth.
Multi-level Regulations
The variations in regulations of countries can hinder smooth trade between traders. The difference in payment protocols and currency can create misunderstandings and unnecessary complexities in commodity trading.
Lack of accountability
Many individuals can exploit the drawbacks in the system such as unaccountability and inefficiency. It is not difficult to fabricate paperwork and scam individuals. This can lead to mistrust in the industry.
The above issues can be rectified by employing the most futuristic Distributed Ledger Technology called Blockchain. NewzoneEx will become the first-ever commodity trading platform that promises decentralization, accountability, and efficiency. So join us in our vision to create a future with blockchain technology.