The Seam is an American company focused on providing technological and cutting-edge solutions to the trade and exchange of the farming sector, especially in the cotton industry. Since its inception the company has maintained its innovative nature and was the first to accommodate the first online trade for this raw material. Therefore, the company recently announced the formation of a consortium with IBM to use blockchain technology in order to improve processes in the complex cotton industry.
The latter is one of the largest and most profitable because it crosses a large number of sectors. Despite being the main raw material in textile production, cotton is used in industrial products such as filters for air conditioners, life rafts, conveyors, tents, car tires, swimming pools, safety helmets and mine fans. This great variety is due to the ease with which it can adapt and with which it is possible to braid the fiber in threads. However, cotton cultivation causes some problems in the environment, as it accounts for approximately 25% of the world's insecticide applications and requires large amounts of water.
Cotton producers suffer from competition from the low prices of synthetic fibers, resulting in fluctuations in cotton prices in international trade which creates uncertain conditions for producing communities when it comes to marketing. Not to mention the high costs involved in paperwork, taxes, international payments and currency exchange. As a result, businesses in the cotton trade have become quite problematic.
It is at this point that The Seam appears to solve it with the blockchain, applying that technology using the Hyperledger Fabric platform, thanks to its distributed nature, will allow companies to work together on a trust basis, with greater speed and smaller costs and interference. Smart contracts will also facilitate global trade with cross-border settlements and the instantaneous transfer of currency or other assets, when the pre-defined conditions are met.
The Seam aims, with its alliance with IBM, to lead a collaboration throughout the cotton industry to create a transparent supply chain and an effective trading ecosystem, thus revolutionizing the business model and markets of this industry. "This new technology will be transformative for the cotton industry", said the CEO of the company in the official announcement.