According to BlockBeats, Tanssi, an application chain infrastructure protocol, has entered into a strategic partnership with Agrotoken, the world's first agricultural commodity tokenization platform, on July 9. The collaboration aims to develop an agricultural financial solution for the South American market using Polkadot technology, with an initial focus on Brazil and Argentina.
Agrotoken will utilize Tanssi's dedicated application chain technology to develop a blockchain-based solution, using tokenized grains as collateral for loans. This requires a complex process to track grain values, loan terms, ownership transfers, and repayment schedules, tasks that are difficult for a general blockchain to handle.
Agrotoken operates in major agricultural markets where the agricultural industry forms a significant part of the GDP, including Brazil (22%), Argentina (6.6%), and the United States (5.5%). Given the size and complexity of these markets, Agrotoken requires a robust, reliable, and scalable infrastructure, characteristics inherent in application chains.