Overstock subsidiary Medici Ventures has purchased a $2.5 million equity in GrainChain, a blockchain-based payment solution for farms. According to a press release issued December 4, 2018, the sale has granted Medici Ventures ten percent ownership in the company, and the option to double that in the future with a second acquisition round. The funds will reportedly be used to fund GrainChain’s market share expansion in Central and South America.
From Farm to Table
Founded in 2013, GrainChain is a blockchain-based software solution that aims to automate the calculation and documentation of agricultural yield. The platform will use this data for its settlement system, which will allow “grain producers, buyers, and sellers to create smart contracts to secure funds throughout the grain transaction process.”
Like other logistics platforms built using the technology, GrainChain will employ Internet of Things (IoT) devices to avoid errors and eliminate human error as much as possible. Ultimately, since all of the logged data is recorded on a blockchain, details of a particular harvest can be tracked from the farm to store shelves. The system is currently in place in the United States and Mexico, with Latin America expected to follow shortly.
The co-founder and CEO of GrainChain Luis Macias was quoted in the press release as saying:
“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. 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.”
Medici Ventures, the blockchain investment arm of American retail giant Overstock,