FoodCoin is a new cryptocurrency from a group called 1000EcoFarms.com. The aim is to have a system to so that businesses in the real food movement have a resource that directly supports their networks. The reason for the launch is because conventional payment methods for small enterprise farmers are invariably expensive or inconvenient. The aim with FoodCoin is to lower costs and increase value from agricultural sales for large and small producers and consumers of agricultural products. The idea is that each producer will have equal access to the global market of production and distribution of foodstuffs and agricultural products using modern financial instruments.
Discussing the launch of the currency, Mark Meytin, who is a co-founder and partner in the new venture, said: “1000EcoFarms.com is a marketing and customer management platform while FoodCoin is focused on payment and contract-processing services based on the Ethereum blockchain.” Blockchain is a suitable process for farming; it allows farmers to transfer value, or assets, between each other without the need for a trusted intermediary.
The businessman adds further: “The coin is designed to support the global movement towards more localized agriculture. You can use either the existing platform or the coin, but if you use both, you will see improved efficiency.”
How the digital currency and blockchain will work in practice are explored in the following video:
The process of using FoodCoin begins with the on-line platform 1000EcoFarms.com offering the digital currency to all its members. The site has in excess of 4000 users, of whom some 1000 are sellers. Sales made via the platform generate revenue. This is through a percent-based model. The aim is to maintain the process at an affordable level.
With the launch of FoodCoin at the end of August, some 1700 people took part, drawn from a range of different countries. The presale process ends on September 6, 2017. The FoodCoin token will then be made available via an official launch in the middle of December. When operational, 1000EcoFarms.com will donate 10 percent of all issued coins to farming related projects that focus on sustainability and social impact.
According to Agfunder News, blockchains are likely to pick up pace in agriculture, offering farmers greater transparency; the ability to make mobile payments and benefit from decreased transaction fees. Such technology will also facilitate real-time management of supply chain transactions and financing.