How AgriDex is leveraging NFTs to secure agribusiness: Interview


Crypto News Squad
Jul 17, 2023
How AgriDex is leveraging NFTs to secure agribusiness: Interview

AgriDex is setting out to bring the $2.7 trillion agriculture industry to blockchain in a move that could reshape the global agricultural landscape. In this exclusive CryptoSlate interview, Henry Duckworth, CEO and co-founder of AgriDex, explains his vision to revolutionize the trading and tracking of agricultural commodities around the world.

Fresh off a $5 million pre-seed funding round, AgriDex is leveraging solana‘s high-speed, low-cost blockchain to tokenize crops and streamline agricultural transactions. AgriDex aims to tackle long-standing problems in the industry, from opaque supply chains to high remittance fees, with the promise of cost savings of 10-40% per trade and near-instant payments.

Duckworth’s innovative approach goes beyond pure digitization. By minting NFTs for each transaction, AgriDex creates an immutable record of key data points, from product origin to shipping details. This increases transparency and complies with strict EU disclosure requirements, potentially opening new markets for farmers around the world.

In this interview, Duckworth shares her insights into AgriDex’s strategic choices, its unique position in the market, and the transformative potential of bringing real-world agricultural assets on-chain.

How AgriDex plans to revolutionize the global agriculture industry through tokenization

Let’s examine the current state of tokenization, which mainly targets financial assets such as treasury bonds and private loans, among other various financial applications. The global tokenized currency market size in 2023 is expected to be 17 billion dollars, with tokenizable RWA assets estimated to be worth 26 trillion dollars by 2030.

Although these numbers seem impressive, The current RWA landscape continues to lack tangible, day-to-day benefits beyond financial markets, something that could be remedied by connecting agriculture to the chain.

AgriDexA real world assets (RWA) marketplace based in Solana raised $5 million in pre-seed funding Chaining the $2.7 trillion global agriculture industry. AgriDex’s platform leverages blockchain technology to tokenize agricultural products and facilitates the listing and purchasing of various products on the marketplace. Once a deal is finalized, it is secured by minting an NFT that records all important transaction details.

Because it’s built on Solana, we achieve instant payments, high throughput, and low fees. Every transaction on AgriDex is represented by the minting of an NFT that permanently preserves the product, pricing, payment, and other necessary details. Layer 1’s ability to mint NFTs allows AgriDex to develop a scalable NFT-based supply chain solution and achieve cost savings of 10-40% on every transaction.

What specific products are currently tokenized and traded on AgriDex’s Solana-based marketplace?

Initially, we will tokenize and list agricultural products such as sugar, grains and olive oil. The platform will support more products in the future as we have new partners and investments.

Can you detail the process of minting a non-fungible token (NFT) to secure deals finalized on AgriDex?

The process involves creating an Order NFT that contains comprehensive information on global import and export standards. This includes product information such as documentation and certification to verify product quality, quantity, and origin. It also covers export details such as packaging, labeling, and export requirements, as well as shipping progress updates, bills of lading, and insurance certificates. It also includes import requirements for customs clearance and customs clearance.

All transaction data and related deal information is protected in the NFT, making the NFT a legally binding document signed by both buyer and seller. This document covers product certifications as well as buyer and seller details, product specifications, Incoterms, payment terms and necessary shipping, financing and insurance documents.

What sets AgriDex apart from other platforms for tokenizing real-world assets?

IBM Trust and many other large institutions have tried to overcome this problem. Part of their failure stems from people’s lack of confidence in their position as potential competitors. What makes Agridex different is ours comprehensive understanding The state of the agriculture industry and how to use technology to fix it. We focus on using blockchain to solve real-world problems, rather than just using it to draw attention to the project.

For example, we chose to build our marketplace on Solana, where transaction fees are typically $0.005 or less, compared to $8.90 for ethereum and costly percentage-based (6-10%) fees for international remittances.

Besides, Independent verification of documents and data, such as provenance tracking, has long been a challenge in maintaining transparency and accountability throughout the supply chain. We are using blockchain technology to effectively address and solve these issues.

We support disclosure of most of the 1,100 data points required by the EU under the 2023 Sustainable Finance Disclosure Requirements, making it easier for farmers to sell their products internationally.

Finally, only an internet connection and wallet are enough to benefit from AgriDex!

What led AgriDex to focus on the $2.7 trillion global agriculture industry for tokenization?

Despite being worth $2.7 trillion, the agricultural sector is hampered by opaque and fragmented supply chains. These issues lead to high transaction costs, slow payment times, and a lack of transparency, leading to inefficiencies and potential fraud. Farmers often struggle to get fair prices for their products, while consumers end up overpaying. Wire transfers currently take 3-7 days to process, with fees averaging 6% and sometimes as high as 10% per transaction.

We aim to solve a real-world problem and that is the only way any crypto narrative can go mainstream.

In what ways does AgriDex aim to contribute to wider adoption of tokenization in the agricultural sector and beyond?

RWAs continued to gain popularity and became the second most profitable narrative in the crypto space in the first quarter of 2024. According to a recent report by CoinGecko. Also, the market value is estimated to reach $16 trillion by 2030. Boston Consulting Grouphighlights its potential impact on the global financial system.

However, tokenization primarily targets financial assets such as treasuries and private credit; the 2023 market cap is projected to be over $17 billion and tokenizable RWA assets are projected to reach $26 trillion by 2030. Despite these impressive figures, the RWA landscape lacks day-to-day utility beyond financial markets, a gap that could be addressed by integrating agriculture into the blockchain ecosystem.

Contact Henry Duckworth


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