Agrobon Concept
The idea of Agrobon project
It involves the combination of traditional supply and demand for existing and future agricultural products by facilitating and speeding up the transfer of rights to the assets involved — agricultural products and settlement funds.
The main aim of Agrobon is to create and implement a software solution that simplifies and speeds up the conclusion of agreements between farmers (agricultural suppliers) and buyers of agricultural products in almost any country.
We can achieve this by using the Bitbon System, a decentralized social network of economic relations of Ukrainian origin based on the distributed ledger technology (blockchain), and tokenization mechanisms. This software solution allows platform users to quickly and conveniently conclude agreements on the supply of agricultural products and easily assign rights and obligations under such agreements identifying the parties and recording all actions in the distributed ledger of the information platform.
This ensures transparency, reliability, and flexibility of interaction between platform participants, as well as allows adjusting solutions to different regional peculiarities and regulations.
Technologies and services
The technological model of Agrobon is based on:
-
Information platform based on the distributed ledger technology that includes a variety of digital services.
-
Service for tokenization of legal relations under agreements.
-
Service for tokenization of legal relations involving money in e-commerce transactions using escrow mechanisms.
-
Ad service.
The information platform based on the distributed ledger technology provides:
-
verification and identification of the subject-object composition of agreements;
-
recording rights and obligations of users under agreements and their management using tokenized asset units;
-
decentralization, transparency, and reliability of data storage on agreements between users of the information platform.
The service for tokenization of legal relations under agreements
Provides mechanisms for drafting agreements on the supply of agricultural products with the assignment of rights and obligations under such agreements in transactions using tokenized asset units.
The service for tokenization of legal relations involving money in e-commerce transactions using escrow mechanisms
Provides a solution for convenient and reliable management of rights and obligations under deferred payment agreements on the supply of agricultural products using a new instrument for recording and verifying rights to assets — tokenized asset units.
Those units are used to measure and record the buyer’s rights to a pre-order for the supply of agricultural products without making an advance payment and as an instrument for software audit of the fulfilment of the terms and conditions under the escrow account agreement to ensure that the seller (agricultural supplier) receives a deferred payment as a fact of closing the agricultural product supply agreement.
To ensure the operation of the service for tokenization of legal relations involving money in e-commerce transactions, it is mandatory to conclude a trilateral escrow account agreement (between an account holder, bank, and beneficiary) in order to provide third parties (sellers and buyers of agricultural products) with the opportunity to use it for payment as part of e-commerce and automatic (software) audit of the fulfilment of the terms and conditions under the escrow agreement for the beneficiary’s disposal of money in favor of third parties (sellers, who receive the deferred payment under agreements concluded on the platform).
Functional capabilities of the service ensure the targeted use of funds, namely: the purchase of agricultural products in a clearly defined territory, preventing possible abuses and increasing the overall security and transparency of the system.
Ad service
Provides mechanisms for placing orders and concluding agreements on the supply of agricultural products with a deferred payment and without making an advance payment through the algorithmic exchange of tokenized asset units that ensure the identification and recording as well as management of rights and obligations under agreements between platform users (sellers and buyers).
The ads service contains the register of sellers, which is supervised by the company - the owner of the escrow account. Being the controller of the register of sellers, such a company identifies, verifies, and monitors the implementation of their public offers for the sale of agricultural products. The service contains sections for already grown agricultural products and agricultural products of the future harvest. The second option allows sellers to receive financing through pre-orders.
At the same time, the sale of already-grown agricultural products grants the possibility of transferring the rights of claim between users of the platform. The pre-order option is expanded by the possibility of buying out the right of claim of agricultural products of the future harvest by the seller from the buyer for a specific price and time.
This approach significantly simplifies the process of buying and selling agricultural products, makes it more transparent, safer, and increases the availability of financing for sellers of agricultural products.
The service also ensures the reliability, security, and transparency of agreements, and its organizational and technological model, among other things, provides protection against fraud as well as compliance with the interests of all parties to the agreement:
-
the supplier knows that they will receive money after the delivery of agricultural products to the buyer;
-
the buyer knows that they will receive the ordered agricultural products and avoid paying money in advance;
-
the logistics agent knows that they will be paid for delivering agricultural products to the buyer.
It is important to note that a logistics agent can be either a logistics company or any user of the information platform certified for this role, who is already on a route that corresponds to the delivery route of agricultural products and can be paid for delivering agricultural products to the buyer.
Thus, the Agrobon software solution provides a decentralized, efficient, and secure mechanism for conducting direct transactions and managing economic relations between participants in the Bitbon System decentralized social network.
The model of interaction between users of the Agrobon platform
The overall model of the relations between agricultural suppliers and buyers using the Agrobon platform is shown in the diagram below:
.png)
A user of the information platform replenishes their escrow account as a third party.
After the money is credited, an escrow account holder receives a notification from the bank and performs tokenization while the token units are accrued to the user’s account in the information platform to measure and record the buyer’s rights to a pre-order for the supply of agricultural products.
A farmer (supplier of agricultural products) drafts and tokenizes an agreement on the supply of agricultural products with the possibility of assigning rights and obligations under such an agreement while performing transactions with tokenized asset units. After that, the farmer places an advertisement for the sale of agricultural products the quantitative indicators of which as well as the supplier’s obligations related to these agricultural products are determined by the number of tokenized asset units placed in the ad service as part of the farmer’s advertisement.
In the ad service, the buyer finds the desired product and places an order by placing a counter-advertisement for the purchase of specific agricultural products. As a result of the mutual fulfillment of those advertisements, the supplier and the buyer enter into a deferred payment agreement on the supply of agricultural products without paying in advance.
The farmer transfers agricultural products and delivery data to the logistics agent that is certified by sending a notification to the ad service.
The logistics agent delivers agricultural products to the buyer.
After the successful transfer of agricultural products, the buyer receives a notification in the ad service
Following the fulfillment of the order conditions, under the agreement on the supply of agricultural products between the farmer and the buyer:
-
the buyer receives token units that define their rights to the received agricultural products;
-
the farmer receives token units that define their rights to receive the deferred payment for the sale of agricultural products under the agreement;
-
the logistics agent receives token units that define their rights to receive the deferred payment for the delivery of agricultural products to the buyer.
After fulfilling their obligations to supply agricultural products, the farmer sends a request to the beneficiary to receive the deferred payment from the escrow account for the supply of the agricultural products. At the same time, tokenized asset units are the identifier of the supplier’s rights to receive the deferred payment. The beneficiary processes this request and sends a payment order to the bank. The logistics agent receives the deferred payment for the service rendered using the same procedures.
The bank transfers the appropriate sum of money to the farmer’s account at the beneficiary’s request.
Unique features of the Agrobon agromarketplace
Regional operators
They are an important part of the digital ecosystem of the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations. They are located in various countries under franchise agreements with the owner of the BItbon System infrastructure and play a key role in adapting the platform to local laws and regulations.
Regional operators are responsible for the local implementation of the Agrobon project including the implementation of the project’s services in accordance with the needs and requirements of each region. They also contribute to the development and expansion of the platform by adapting it to local markets and laws.
This decentralized structure that includes regional operators ensures the flexibility and scalability of the platform allowing us to adapt it to different markets and activities. As a result, the Agrobon software solution and the Bitbon System can successfully operate and be developed worldwide complying with the legislation of each country and ensuring maximum efficiency within the decentralized economic network.
Regional operators will be able to independently determine tax payment options as well as options for submitting income tax returns related to transactions carried out using the Agrobon software solution.
Scalability
This is a key aspect of the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations. The speed and flexibility of the platform’s services allow it to be adapted to a variety of programs and activities making it a universal instrument for organizing economic relations between users.
Thanks to its flexible architecture and the blockchain technology, the platform can be easily expanded and adapted to different industries and market segments. This means that the Agrobon software solution can be applied in activity areas, such as agriculture, manufacturing, trade, education, public administration, public finance management, and many others.
This scalability also opens up an opportunity for growth and development of the platform, as new markets and business areas can be integrated into the ecosystems of the Bitbon System without significant development and implementation efforts. This creates a solid foundation for global growth and success of the Agrobon software solution and the Bitbon System.
Legal protection
One of the main goals of the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations, is to ensure full legal protection and compliance with the regulations of each country where the platform is planned to be launched.
For this purpose, the platform envisages regional operators acting under franchise agreements with the owner of the Bitbon System infrastructure. Regional operators will be responsible for integrating the platform in accordance with the laws of a certain country and ensuring compliance with all its regulations.
Thus, legal protection and compliance with regulations are one of the priorities in the development and implementation of the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations, which ensure user confidence in the platform and contribute to its successful development in the global market.
Advantages of the Agrobon agro-marketplace
E-commerce organized on the basis of the Agrobon software solution has a number of advantages that make it attractive to users and contribute to its successful development. The key advantages include:
Transparency
Due to the blockchain technology, all agreements on the assignment of rights to products and services between users of the platform are fully transparent and controlled.
Flexibility
Simple scalability and adaptation to regional peculiarities: the platform’s services can be easily scaled and adapted to the needs of different regions, which allows using the agrobon in different countries, taking into account legislative and cultural peculiarities.
Cost-effectiveness
The absence of the need to use money during transactions due to the exchange of distributed ledger tokens between users of the platform facilitates transactions and reduces fees.
Eco-friendliness
Reducing logistics transportation through the ability to find the closest counterparties helps decrease carbon dioxide and other pollutant emissions.
The increase in the number of agricultural producers who are not engaged in this business will lead to an increase in the quality of such products as small acreage and lack of goals for large profits combined with an effective evaluation system in the digital ecosystem will certainly lead to healthy competition for the quality of agricultural products.
One of the key factors in this competition will be the eco-friendliness of agricultural products.
Reliability
The Bitbon System provides a safe and secure transaction environment and protects users from fraud and other risks.
Simplicity
The simplicity of transferring rights and obligations: implementation and use of listing and escrow services simplify and speed up the process of concluding agreements and transferring rights and obligations between buyers and sellers.
These advantages make the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations, attractive to users and contribute to their global success.
In addition, the Agrobon platform is a more efficient, sophisticated, and comprehensive analog of existing e-commerce platforms and escrow services by its very nature and the solution it offers. The information platform also provides mechanisms allowing users to finance agricultural producers, which is a more flexible and cost-effective solution than the available platforms, such as AgroApp, which solve this problem by acting as intermediaries between farmers and banks.
The Agrobon platform allows transforming and improving 3 aspects of the agricultural sector:
Developing sustainable agriculture: an increase in the number of people growing agricultural products for sale, and competition related to the product quality due to its eco-friendliness can reduce the use of chemical fertilizers and pesticides. This, in turn, will help preserve soil, water resources, and biodiversity contributing to the development of sustainable agriculture.
Ensuring transparency and quality control: the platform provides transparency and quality control through a system of estimates and ratings, which allows buyers and sellers to conduct their business and build trusting relations.
Encouraging the development of local communities: the support of local farmers and producers can help develop local economies and strengthen social ties in rural communities.
Thus, the Agrobon software solution and the Bitbon System, a decentralized social network of economic relations, can contribute to the development of sustainable and ecological agriculture as well as improve the quality of life of farmers and households.