Boston Consulting Group questions blockchain for commodities

Yesterday Boston Consulting Group (BCG) published a report that raises some questions about the suitability of blockchain for Commodity Trading. The consultants acknowledged that blockchain could improve transparency, help to track goods and reduce fraud.

Threats and opportunities

One of the observations is that there’s scope to improve standardization, efficiency, and tracking of goods without adopting blockchain. And blockchain won’t benefit all participants such as merchant traders. For pricing and arbitrage, recording all transactions on a blockchain results in greater transparency and fairer prices. It would also reduce profits for those that rely on inefficiencies.

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