Blockchain successfully tested with soy transaction

For the first time, a blockchain-based platform has been used during a soybean transaction. ABN Amro and ING report this. How does the new blockchain system: Easy Trading Connect (ETC) work in practice?

Several banks, including ABN Amro and ING, have developed a blockchain platform. The new ETC system has been set up to digitize commodity transactions. This technology can be useful in the complex and strict chain documentation that is common in the agricultural sector.

Fully automated transactions
Blockchain means that all necessary documents required during a transaction are processed fully automatically. A blockchain makes it possible for two parties, who do not know each other, to enter into a reliable transaction without the intervention of a third party. The check is done by all parties involved. In the case of ETC system, there is only control by the banks.

According to experts, the system functions as a kind of digital ledger. ABN Amro says that blockchain could form the basis for faster and cheaper banking transactions in the future. 

Tested with soy
The ETC system was recently tested in practice for the first time. This was during a transaction of soybeans from the United States (US) to China. All necessary documents, such as phytosanitary certificates and letters of credit, were processed by the system. According to ABN Amro, this avoided a lot of paperwork, which accelerated the process.

Click here for an animated video. 

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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