Blockchain’s Potential in Commodity Trading Overhyped, BCG Concludes

Boston Consulting Group (BCG) has determined that the hype surrounding blockchain technology in the commodity sector, particularly in trading, may be overstated. Over the past two years, various commodity firms and banks have engaged in trials and implemented distributed ledger technology (DLT), but BCG’s findings suggest that the advantages for commodity trading have been inflated.

Antti Belt, a co-author of the BCG report, expressed his views on the matter, stating:

“There are so many pilot schemes, but none have transitioned to real production-scale systems yet. One of the challenges is that DLT is not tailored for physical trades. The core issue remains: how do you track a physical entity in a virtual realm? It’s a clash of two worlds.”

To date, the uptake of blockchain in trading remains limited.