The cotton trade in Nigeria hasn’t been covered considering oil and other commodities remain the GPD bringers for the country. However with commonwealth bank and Wells Fargo slowly breaking into the blockchain infrastructure with the help of Skuchain, as it channels investments towards the international cotton market.
Selling and buying cotton is still a fairly obscure process with farmers often getting the raw end of the deal having to pay fees and extras. However the technology planned to be developed aims to make use of blockchain technology to facilitate the trade as the Commonwealth Bank also remarked on the ability to track shipments due to the transparent nature of the blockchain itself.
“The interplay between blockchain, smart contracts and the Internet of Things is a significant development towards revolutionising trade transactions that could deliver considerable benefits throughout the global supply chain.”
Currently the project is dealing with Australian firm Brighann Cotton, but considering the scale of barks involved is likely to expand to major cotton producers such as India and Nigeria. With a successful test already conducted it is hoped the solution will be put into action by next year to aid the digitalization of the fairly unchanged industry.
To conclude following news that the blockchain will be used in the insurance industry, used in the payments industry and now as a medium for transactions in the cotton industry, it seems the expansion of the blockchain is heading in the right direction. Primarily to enhance the security clients can expect to receive, the blockchain marks a significant advancement for the booming industry which has remained fairly traditional in Nigeria.