Comdex, a commodity trading platform built on the Commit blockchain, has completed trades worth over $10M on its platform. Comdex is enabling commodity traders to engage in cross-border settlements and conduct Pre-trade and Post-trade Workflows. Trade financing is expected to be introduced on the platform in 2020.
Earlier this year, Comdex completed its first cross-border commodity settlement in the form of a wheat commodity transaction between Malaysia and Australia. The trading organizations involved utilized Comdex’s payment gateway and escrow system to settle the un-financed trade.
Comdex offers greater operational efficiencies through digital KYC/AML solutions, efficient data processing, and document management along with improved trust by leveraging blockchain-based solutions for digital document provenance. Early adopters have therefore found it to be the preferred solution for their needs.
While established commodity trade houses such as the likes of Cargill or Bunge maintain sophisticated in-house trade platform solutions, the majority of SMEs and MEs in emerging markets rely on archaic methods of communication and data exchange. This results in a general lack of trust between parties transacting across borders. Comdex aims to tackle this issue by leveraging blockchain features like immutability, provenance, and consensus which in turn reduces the settlement time.
The blockchain enforces trust between trading parties, Comdex and also trade financiers, who will be onboarded onto the platform as well. The Comdex application is built on the Commit Network, an enterprise blockchain comparable to Corda or Hyperledger. The Commit Network is based on the Tendermint blockchain that also powers the increasingly popular Cosmos Network.
Instead of establishing a centralized hosting infrastructure to operate the blockchain, the Comdex application relies on a network of ‘validators’ or ‘real-time chain auditors’. These ‘validators’, consisting of B-Harvest, CertusOne, Figment Networks, and StakewithUs, ensure that neither Comdex nor any other entity can manipulate transactions conducted on the platform.