Overstock.com’s Medici Ventures buys $2.5m equity in GrainChain
Overstock.com, Inc. subsidiary Medici Ventures, one of the leading blockchain accelerators has purchased a $2.5 million equity in GrainChain, a suite of software to bring easy and secure payments to farmers, purchasers and grain elevators via blockchain.
According to a press release CoinReport received from Method, GrainChain’s communications firm, Medici Ventures has 10 percent ownership in GrainChain, with an option to further its acquisition for an additional 10 percent at a later date.
GrainChain was established by the founders of SiloSys in 2013. The firm’s software products remove manual processes of weighing and documenting agricultural produce. Grain producers, buyers and sellers utilize the blockchain-based financial settlement system to create smart contracts to secure funds throughout the grain transaction process. The company, by utilizing Internet of Things (IoT) devices that accurately measure grain quality and weight, removes the error potential from bad actors or human error. Moreover, the system generates documentation to track yields from farm to table, eradicating the possibility of fraud.
GrainChain co-founder and CEO Luis Macias said in the news release we received, “We are making the grain transaction extremely efficient, transparent, safe and secure, and we’re giving not only the farmers but also the buyers a safe marketplace to do business in.”
He added, “At the end of the day, we’re just leveling the playing field for the farmer, giving them much more power and control over the selling process.”
Small- and medium-sized farming operations still produce the bulk of global agriculture, but they mostly lack the funds to implement advanced technology to secure and modernize their commercial transactions. The suite of software, says the release, offers an inexpensive way to implement those tools and safeguards. As well as enabling farmers and buyers to alienate middlemen or brokers to secure their transactions, the software allow them to confidently trade with entities outside their geographic region, thus increasing their commercial opportunities.
Medici Ventures president Jonathan Johnson stated, “Agriculture is the backbone of our global civilization, but producers operate on razor-thin margins and are up against a host of factors far beyond their control.
He added, “GrainChain helps to support those producers by simplifying and securing the measuring and payment process and bringing unprecedented transparency to the industry.”
Presently available in Mexico and the U.S., GrainChain will now, following its 10 percent acquisition by Medici Ventures, be able to expand its market share in South and Central America.
Image courtesy of Overstock.com