Agrinode-Immediate payment on delivery
Blockchain technology enables real time payment on delivery and settlement process for farmers. Farmers are paid immediately without any delay. Farmers are ensured of transparency, trust with the use of blockchain technology. Blockchain intervention can also help expedite financial settlements and farmers no longer have to wait for payments endlessly, which often leaves them distressed. Smart contracts are written in code form and when all the criteria are met, payments are released automatically.
This means farmers fulfill the required prerequisites like digital identification, etc., they supply their commodities and shall receive money into their accounts almost immediately within hours. There are no intermediaries or additional costs involved. In fact, blockchain-based apps can easily provide reliable, secure and instant peer-to-peer fund transfers.
Other types of financial services, like payment services, insurance and credit, also play an important role in helping agricultural supply chain actors to reduce risk, improve crop yields, manage liquidity and maximize returns. DLTs have the potential to reduce friction costs and increase access to agricultural value chain finance particularly for smallholders and MSMEs.
With multiple parties involved in a single transaction, including farmer, buyer, broker and bank, transmitting the proper information and ensuring contractual agreements are adhered to about product quality and price can further prevent the flow of capital. Blockchain’s ability to promote trust, efficiency and accuracy in B2B payments and trade finance through the use of tools like smart contracts and digital tokens means farmers, buyers and Financial Institutions can mitigate risk.
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