Arbol, a platform that enables farmers to hedge against weather risk, integrates Chainlink data oracles. Weather data on blockchain Arbol CEO Siddhartha Jha said for Cointelegraph that the company is using blockchain technology to solve a problem that affects billions of people around the world: "It's crazy that so many people in the world, about two to three billion people they estimate, are affected by weather from day to day." Farmers are probably most affected by the unpredictability of weather. For many, severe weather can lead to loss of livelihoods and even starvation. Although farmers' insurance has been around for decades - if not centuries - it is out of reach for the vast majority of them, according to Jha: "If you had less than two hundred thousand dollars of premium to spend, you actually had no real access." Arbol's blockchain infrastructure Jha says Arbol both lowers the barrier to entry and makes hedging cheaper. With blockchain, settlements and withdrawals can be instantaneous, whereas in the centralized world they can take weeks, if not months. Hedging against adverse weather conditions Farmers can protect themselves against various adverse weather conditions that negatively affect their crops. They can buy insurance - for example, if the temperature in their region reaches a certain level, the farmer automatically keeps a payout. By adding weather data feeds based on Chainlink oracles, the company's platform has become more decentralized and flexible. Jha said the platform was launched in February and has already experienced significant demand in the real world: "We have completed over 210 transactions, about $13 million of notional risk. This is with farmers growing a huge range of crops from corn, soybeans, to fruits and other specialty crops. We have worked with agribusinesses, hedging their supply chain risk." While Jha emphasized that the platform is meant to provide real-world utility, he believes it could become a very attractive decentralized financial product in the future: "These weather portfolios are a great investment for the DeFi community if you have them tokenized, if you tokenize weather risk; these portfolios, the returns are quite attractive. The risk-reward is great because it's very diversified and it's also not correlated to the stock and bond markets." Jha added that the company has done some payouts in stablecoins, but the vast majority of users prefer good old-fashioned fiat for now. Tags arbol Blockchain Chainlink oracle oracle
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