As the world commodities market is plagued with problems of transparency and arbitrage trading, we need a solution where database updates are required in real time and transactions settlement in minutes without intermediaries. The emergence of cryptocurrency is to solve these issues.
As the world commodities market is plagued with problems of transparency and arbitrage trading, we need a solution where database updates are required in real time and transactions settlement in minutes without intermediaries. The emergence of cryptocurrency is to solve these issues.
“ The fundamental issue: how do you track a physical entity in a virtual world? It’s two worlds colliding,” Antti Belt, co-author of Boston Consulting Group Report asks a valid question.
In addition, scaling up the technology must be financially justifiable and be able to reconcile terminologies. In the industry which is ancient and the language used is different to define quality and supply chain aspects like logistics, NewzoneEX commodity trading platform will create a new universal language and currency for trading with NZ tokens.
Due to the currency exchange rates difference between two countries, commodity traders seek to identify differentials between linked markets. There is reduced transparency in arbitrage trades and implementing technologies like blockchain would add immutability to trades.
Blockchain technology can transform the multi-trillion dollar commodities trading industry by streamlining the regulatory process. The regulators need not wait for the participants to submit compliance records at regular intervals. Even when there is any suspicious activity, the trading platform can immediately flag and inform concerned authorities.
Blockchain technology can transform the multi-trillion dollar commodities trading industry by streamlining the regulatory process. The regulators need not wait for the participants to submit compliance records at regular intervals. Even when there is any suspicious activity, the trading platform can immediately flag and inform concerned authorities.
Implementation of blockchain technology in the age-old traditional industry should be a natural evolution with considerable investment. However, the returns are equally attractive. It will improve transparency, efficiency and increase liquidity. This is possible through a two-party transaction with a blockchain based commodity trading platform to match buyers and sellers.
A word about NewzoneEX
New Zone Intertrade FZE, headquartered in UAE, is a USD 2 billion diversified global conglomerate focused on the trading of metals and raw materials. NewzoneEX very soon plans to enter into energy and soft commodities trading. Through our three primary operating subsidiaries, we provide value-added solutions in distinct – but complementary – areas, while focusing on identifying and capitalizing on selected opportunities within each.
- Trading of industrial metals and dry bulk commodities
- Focus on raw materials for steel making and power generation
- Main products traded are nickel, copper, zinc, aluminium, ores & concentrates
- Entering into energy and soft commodities trading
NewZoneEx is based on the Etherum platform and the payments will be done through NewzoneEX Tokens which are basically ERC20 tokens. The token is used for all trading activities on the platform. The activities include but are not limited to trading, settlement of contracts, insurance, and leverage.
However, in a second phase, we plan to extend the platform to the trading of futures and options on equities, treasury bonds, and other types of underlying services. Token holders can operate on the NewZoneEx platform as traders or insurers.
Insurers guarantee each trade by providing insurance against the risk of default by the traders (counterparty risk). Our current prototype allows users to list Smart Contracts, view contact details, see order books, and place buy and sell orders.
Blockchain technology makes this trading platform reach greater heights and help in the complete transparency of transactions. We will be raising funds to develop such a platform to create seamless trading of commodities.
NewzoneEX will be giving out NZ tokens in the ICO period. We invite you to be a part of a flourishing community by joining hands to create something greater.