Introduction:
In a recent report published by the world Economic Forum WEF and Bain And Company, titled: Evolution Of Non-Fungible Tokens, Algorand’s Agrotoken was highlighted under, ‘Financial services: Main players in the industry have run pilot tests to experiment with the blockchain technology’.
Agrotoken:
Agrotoken, an Argentina-based startup, has pioneered the global tokenization infrastructure for agrocommodities. Their primary objective is to convert crops into commodity-backed stablecoins. The essence of Agrotoken lies in its ability to amalgamate technology, finance, cryptoeconomics, and agribusiness. By doing so, they transform grains into a digital asset where one Agrotoken equates to one ton of grain. This digital asset can then be stored or exchanged for various inputs, services, and assets such as seeds, vehicles, machinery, fuel, and more.
Agrotoken and Santander:
On 7th March 2022, Santander and Agrotoken announced their joint venture, emphasizing it as the first global experience in backing loans with tokens related to agricultural commodities. A pilot test was conducted with Argentine farmers to validate the product’s technical and operational aspects. Fernando Bautista, head of Agribusiness at Santander Argentina, highlighted the bank’s focus on leveraging technology to expand the agricultural credit market. Source, Check out our own article on the partnership!
Agrotoken and Algorand:
Initially, Agrotoken explored Ethereum for its proof-of-concept. However, due to unsustainable gas prices and transaction costs, they trialed a move to Polygon for testing integrations. It was only when they discovered Algorand that they found the ideal platform for their needs. Since then, all new tokenizations have been moved to Algorand. While Agrotoken still maintains a multi-chain approach for convenience (given that some of their significant partners are currently more familiar with Ethereum), they firmly believe that Algorand is the blockchain of both the present and the future.
The primary reasons for Agrotoken’s shift to Algorand include the platform’s speed and efficiency. Transactions on Algorand are completed in a matter of seconds, a stark contrast to the longer wait times experienced on Ethereum. This efficiency, combined with Algorand’s robust security features, makes it a preferred choice for Agrotoken’s operations.
In essence, Agrotoken’s utilization of Algorand showcases a real-world application of blockchain technology, bringing the concept of “tokenizing food” to life.
Conclusion:
This is some what a big deal for not just Agrotoken but Algorand also as it showcases a real world application ran on the Algorand blockchain! The competing layer 1s in the cryptos space only need 1 or 2 killer real world apps to be hugely successful in what is still an extremely speculative space!
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