Spanish Company Sends Olive Oil to the Blockchain with Smart Contract Quality Control
Spain is the world’s largest olive oil producer, producing one million tons of it each year. With a market that big, it was only a matter of time before someone thought about tokenising it.
On a less cynical note, two of the biggest problems in the commodity supply chain are price volatility and quality control. Olivacoin hopes to solve both issues for the olive oil industry with its ICO, launching tomorrow.
New Quality Control Model
As well providing a payment platform for buyers and sellers of olive oil, the company has created hardware to analyse the oil to ensure that the quality is as promised. Provided everything is as it should be, the payment will then be actioned with smart contracts.
Founder Ismael Santiago believes that Olivacoin can become the biggest company in the sector, without owning fields, trees or a single processing plant. From there Santiago hopes to expand his company to become “the undisputed world leader in the blockchain traceability in raw materials” by combining cryptocurrency with internet of things technology.
“There is no cryptocurrency based on food blockchain traceability”, he added, “we are the pioneers and leaders here.”
Olivacoin grew out of the finance research group at the University of Seville with plans to address the challenges the olive oil industry faced following the closure of the olive oil futures market in Jaén in 2014.
Futures markets protect people in the industry from the risks associated with price fluctuations. If the industry adopts Oliviacoin for pricing and standardisation then Oliviacoin derivatives – like futures contracts – could be a potential next step.
According to Santiago the ICO brings about a host of other benefits to the industry, not least lower costs due to quicker payments, fewer intermediaries and a reduction in foreign exchange risk. The Olivacoin ICO starts tomorrow and is hoping to raise up to €20 million.