Quality News Today: How Blockchain And Digital Coins Can Serve The Biofuels Industry
Few topics in business today stir more debate than blockchain and digital coins. It is important, however, to not get distracted by the hype and polarization of that discussion. Blockchain and digital coins are technologies that can bring important changes to the commodities markets, and for that reason are receiving growing attention and investment from players in the oil, natural gas, metals, agriculture, power, and emission rights industries, among others. Biofuel market participants should also follow these technological developments closely. There are three areas particularly promising to the biofuels industry: supply chain integrity and traceability, access to financing, and downstream sales.
Increasingly, the management of commodities supply chains requires the ability to track products from source-to-sink. Today's prevalent method to do so is a combination of diligence, trust and a complex and expensive system of overlapping 3rd party audits and verifications.
However, such 3rd party assessment are mostly used privately and not subject to public checks and scrutiny. Therefore, such reports are vulnerable to tempering. Further, the lack of public verification on representations around a commodity often leads to a belated discovery of fraud, when different parties reach for the same asset. The weaknesses of the current method are best evidenced by some high-profile cases, such as the large-scale fraudulent sale of Renewable Identification Number (RIN) in the United States or the multiple sale of the same warehousing space in the Qingdao Port in China. Read the full story