ABOUT
Our Technology
Choco4Peace aims to digitalize the Colombian cacao sector. This means building an international consortium with the public and private sectors that are supporting cacao producers with technical or financial assistance.
Being able to borrow money is one of the most important ways of growing a business, and this is especially important for small farmers who want to lift themselves out of poverty.
Unfortunately, for a number of reasons, small farmers have a particularly difficult time borrowing money. They often:
Live in remote areas, physically cut off from mainstream banking services
Do not own the land they farm, so they cannot use this land as collateral when asking for a loan
Lack the financial literacy to manage an enterprise
Are subject to crop failures and natural disasters
Cannot afford to borrow enough to be worth the cost of administering the loan
All of these factors make small farmers very risky investments, and as a result, small farmers around the world together face a financing gap of approximately half a trillion dollars.
Choco4Peace uses blockchain technology to power our Decentralized Inclusive Economic Network to fill this gap. The Decentralized Inclusive Economic Network (DIEN) is a digital ecosystem we designed in collaboration with the World Bank that integrates all the socioeconomic services a small farmer would need to succeed in one place – think of it like a smartphone full of apps.
A farmer needs to connect with those who want to buy their product. They need a way to get paid. They need technical support, insurance, and financing.
These digital applications lay the foundation for three vital improvements:
First, it enables producers to access indispensable services in an effective and friendly-user way, with an interface tailored for their digital abilities.
Second, the digital applications within the platform allow the establishment of third-party application such as a blockchain-based supply chain app, in which transactions are hashed, buyers can have access to precise information about the quality of the cacao, payments are facilitated by e-wallets and/or a banking application, or they can see whether they are part of the Colombian government’s crop substitution program. Transparency from bean to bar, from producer to buyer.
Third, the unprecedented level of security, transparency and traceability brings a crucial improvement to mitigate investment risk.
We are also designing and implementing a financial vehicle to complement the efforts of the Colombian government, private organizations and NGOs as well as to mobilize capital to cacao producers’ investment needs. This means that as a consumer or an investor, you can see with immutable transparency that you’re supporting farmers to lift themselves out of poverty, build peace in their communities, and most importantly to build lives with dignity.
Blockchain
We can use Blockchain to measure not only cacao origin, but also the socioeconomic and environmental benefits of an investment, in alignment with the UN Sustainable Development Goals. For example, we can demonstrate increases in farmer income as a result of access to international markets, and investors can pass these benefits on to their shareholders.
