Blockchain Metal Company Makes Use of Smart Contracts by Tokenizing Copper with Cu Coin MBX
Blockchain Metal Company is among the latest adopters after it allowed the use of smart contracts in International Commodities Trade.
This comes as the wave of blockchain and cryptocurrency continues to sweep across the economic space, with many companies adopting the transformative technologies in a bid to revolutionize their operations.
The company is currently using Cu Coin MBX, which is its first product and an ERC20 token with a real-world value, to tokenize the ownership of copper. It also engaged one of the most secure legal structures in the crypto market to represent a flexible electronic warehouse receipt of 1Kg of Grade A Copper Cathodes for each entity.
A Secure Connection
Through this initiative, BMC seeks to create a secure connection between the Ethereum blockchain and physical copper.
This will be a new revelation in the industry, using the smart contracts for trade deals and for settling future contracts automatically. Besides, using the Cu Coin will enable the developers to program MBX smart contracts in such a manner that will allow them to execute payment and delivery obligations in turns through the decentralized software code that functions as a self-executing contract.
When it comes to automatic settlement of the future contract, it will be easier to determine a date for copper delivery to the contract partner. Importantly, this move will eliminate the intermediary and facilitate a cost-effective and efficient trade deal, especially where distant and untrusting parties are involved.
Why Ethereum Blockchain?
In addition to having the largest developer community, the Ethereum blockchain also has the most distributed network. The Blockchain Metal Company will not only benefit from tokenizing copper ownership but will also enjoy other benefits of decentralization.
For example, fewer or no intermediaries will lead to the lowest fees in trading, transaction, and operations.
A Secure Blockchain
Besides, Ethereum blockchain is one of the most secure networks that enable users to store their digital assets in independent digital wallets, which enable them to exercise full control of their assets. Additionally, traders will be able to transfer their assets across online marketplaces of their choice, as well as off-line markets are popularly known as “over the counter” deals.
Cu Coin MBX will unite under one platform physical traders, consumers, financial instrument traders, long-term investors, and anyone involved with the crypto investment. The Ethereum blockchain is highly accessible and simple to use, which opens the metals trade to a whole new bunch of actors and funds.
More From Cu Coin MBX
In addition to technological superiority, Cu Coin MBX has more to offer. To begin with, holders of the coin will be the direct owners of ready-to-deploy copper. This will not involve any complex contractual systems, which means there is no risk of liquidation or non-delivery. Even if BMC is dissolved, Cu Coin holders will still have a right to the underlying copper.
Counterparty risk is another dimension to consider. Sometimes the counterparty to a contract may fail to fulfill the financial obligations. In that situation, the instrument could lose its value despite the underlying asset. For a CFD trader, this situation could mean heavy losses, regardless of the movement of the underlying asset in the right direction.
More Metals To Tokenize
Blockchain Metal Company intends to implement the use of smart contacts with other metals including aluminum.
Through Metal Blockchain Exchange, BMC will be able to produce new crypto assets backed by other metals. The company now invites interested parties to learn more and claim their early-bird bonus by registering at metalbox.com.