Decentralized financing of Fairtrade producers using a blockchain-based solution

Abstract

Fairtrade producers in developing countries often have a stable business model and substantial growth opportunities. Due to the missing or insufficient finance infrastructure in the respective countries, Fairtrade producers do not have the opportunity to realize their growth opportunities. Although some impact investors address this problem in the area of smaller agricultural companies, the existing financing solutions are lacking flexibility or the barriers (e.g. credit collaterals) are too high. In a primary study, the practicability of a blockchain-based model was analyzed, considering the economic, legal, and technological perspective. Since the feasibility has been confirmed during the primary study, this larger research project aims to develop and implement the model