Implementation of futures contracts in cryptocurrency
Today I discovered that my farm had become unusually profitable to mine, I decided to find out and found out that the pool to which the farm was connected started mining a very interesting coin - Uro. I found answers that seemed interesting to me in the topic about this coin, revealing its essence.
The key to understanding Uro in the context of agriculture is that Uro is urea, but “delivered in the future” (Uro coins are shared urea futures contracts, but with a blockchain that performs functions that previously required annoying paperwork).
Suppose Uro = "urea delivered in the future" == "Urea Certificate (CM)" (simplified adaptation of paper documents for urea for farmers / ordinary people who do not want to go into the details of defining futures or Uro as cryptocurrency).
SM gives farmers the opportunity to be confident in the reliability of their operations, insuring against the risk of not being able to buy fertilizers in the next season due to abnormal growth in their prices. In a longer period, farmers will be able to purchase SM at times when the price for them will be low (this cannot be done without Uro, because urea is stored for a short time, and the place to store it is needed) —this behavior will push the price upwards, which would will start to form a free market, feeding / maintaining stable prices, and this, in turn, will affect the price of urea even in that part of the market that does not work with Uro.
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Wholesalers make a profit simply by selling SM at a price higher than what they paid for Uro. This is the same as it was before when they bought urea at a low distribution price and resold at a high wholesale price.
In the case when farmers go to the stock exchange and buy Uro independently on open stock exchanges, they keep the profits that would otherwise remain in the pockets of the wholesalers. But since not many farmers think of this, they do not have an impact on the profit margins of wholesalers.
Finally, wholesalers have access to urea at low prices by signing annual contracts with international trading companies, which can also be done now with the help of Uro. As before, urea, and now Uro, can be acquired by wholesalers in large quantities and at a low price, which will not prevent them from continuing to do their work — inventory, accounting, and customer support.
The futures market is easy for traders, but not for farmers. Moreover, now, in order for the average person to get access to the futures market, you need to find a broker, fill out all the documents, pay all the commissions and fees, etc. It is too difficult for a long time and is generally not needed by anyone except traders. Uro this whole process simplifies to elementary actions, so it should enjoy great success with farmers.
To achieve success in something, you need to use the most advanced technology. Most new, "strange" and incomprehensible ideas and experiments often serve as precedents for further research. But Uro is not just an experiment, it is an attempt to combine existing technologies to obtain a significantly better result. Futures are not new, PoW of the blockchain is already too, but the combination of these technologies in the context of agriculture is new, it is more than worthy of study, because it can benefit both in the ordinary life of the agricultural community and confirm the universal usefulness of the blockchain technology .
As for me, we are witnessing the emergence of fundamentally new financial instruments, which in this case are already officially recognized in some places .
About futures and bitcoin already mentioned on Habré Jeditobe . And just about futures - itinvest
References to posts in the topics. First , second .
The key to understanding Uro in the context of agriculture is that Uro is urea, but “delivered in the future” (Uro coins are shared urea futures contracts, but with a blockchain that performs functions that previously required annoying paperwork).
Suppose Uro = "urea delivered in the future" == "Urea Certificate (CM)" (simplified adaptation of paper documents for urea for farmers / ordinary people who do not want to go into the details of defining futures or Uro as cryptocurrency).
SM gives farmers the opportunity to be confident in the reliability of their operations, insuring against the risk of not being able to buy fertilizers in the next season due to abnormal growth in their prices. In a longer period, farmers will be able to purchase SM at times when the price for them will be low (this cannot be done without Uro, because urea is stored for a short time, and the place to store it is needed) —this behavior will push the price upwards, which would will start to form a free market, feeding / maintaining stable prices, and this, in turn, will affect the price of urea even in that part of the market that does not work with Uro.
')
Wholesalers make a profit simply by selling SM at a price higher than what they paid for Uro. This is the same as it was before when they bought urea at a low distribution price and resold at a high wholesale price.
In the case when farmers go to the stock exchange and buy Uro independently on open stock exchanges, they keep the profits that would otherwise remain in the pockets of the wholesalers. But since not many farmers think of this, they do not have an impact on the profit margins of wholesalers.
Finally, wholesalers have access to urea at low prices by signing annual contracts with international trading companies, which can also be done now with the help of Uro. As before, urea, and now Uro, can be acquired by wholesalers in large quantities and at a low price, which will not prevent them from continuing to do their work — inventory, accounting, and customer support.
The futures market is easy for traders, but not for farmers. Moreover, now, in order for the average person to get access to the futures market, you need to find a broker, fill out all the documents, pay all the commissions and fees, etc. It is too difficult for a long time and is generally not needed by anyone except traders. Uro this whole process simplifies to elementary actions, so it should enjoy great success with farmers.
To achieve success in something, you need to use the most advanced technology. Most new, "strange" and incomprehensible ideas and experiments often serve as precedents for further research. But Uro is not just an experiment, it is an attempt to combine existing technologies to obtain a significantly better result. Futures are not new, PoW of the blockchain is already too, but the combination of these technologies in the context of agriculture is new, it is more than worthy of study, because it can benefit both in the ordinary life of the agricultural community and confirm the universal usefulness of the blockchain technology .
As for me, we are witnessing the emergence of fundamentally new financial instruments, which in this case are already officially recognized in some places .
About futures and bitcoin already mentioned on Habré Jeditobe . And just about futures - itinvest
References to posts in the topics. First , second .
Source: https://habr.com/ru/post/229371/
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