The global commodity market has been around for quite some time now and the blockchain technology is gradually changing how certain processes are completed in the commodity market. For those who are not familiar with the blockchain technology, all you need to know is that this technology is basically a collection of blocks or records, which are stored in a secure manner, and often connected with each other. All transactions that are carried out using cryptocurrencies are basically done with the blockchain technology.
When it comes to using blockchain, you can think of the currency as a cryptocurrency which doesn’t have a centralized management platform like our physical currencies out there. Bitcoin is one perfect example of this technology, where users make use of wallets, which contains addresses for receiving and sending money. Using blockchain for business transactions comes with a lot of benefits such as transaction transparency and ease of tracking.
The transparency achieved by the blockchain technology is due to the fact that it acts as a form of public ledger, since everyone maintains a copy of any transaction that is carried out. Due to the kind of openness achieved, this technology use high level of data encryption, which means your personal data will be inaccessible to other users. All transaction requests goes through a validation process, which are then added to the existing blocks.
Commodity trade and the blockchain technology
Just like any other transactions out there, the commodity trade can leverage the blockchain technology in so many ways. Having a public ledger simply means there are no hidden transactions. Using automated post-trade smart contracts, business owners can simply carry out transactions without worrying so much about things such as market volatility and other factors involved.
Blockchain technology comes in handy in the commodity trading market because it gives you the opportunity to track all your commodities, which are often done manually today. For those who are familiar with the concept of the global commodity market, you should know that there are several processes involved, and using the blockchain technology will go a long way in making things a lot easier. Knowing all the benefits of using the blockchain technology is one part of it, and being able to choose the right broker for commodity trading is another important aspect.
The global commodity market is getting a boost with the use of blockchain technology – with more software solutions coming up, the blockchain technology is gradually changing the global commodity market.
The IBM commodity council
IBM has been at the forefront of technological innovations in business and global commodity trading market. The IBM commodity council make use of the IBM Global Procurement, which basically make purchases using three categories i.e. General Procurement, Systems Production Procurement and Technology Group Procurement.
General procurement has to do with business services that handles professional services or consulting. This also covers things such as education, human resources and market intelligence. Other services covered includes complementary workforce services. This takes care of clerical services that has to do with help desk, staffing etc.
The IBM commodity council, under the area of general procurement, handles connectivity, which deals with networking or hardware and services that can be used by brokers. System production procurement area of the IBM commodity council handles things such as interconnection of IBM hardware, logic, such as CPU and core logic chipsets. Finally the technology group procurement deals with the manufacturing of equipment build to spec.