Blockchain technology, which has already been adopted by gold traders, is starting to show the potential to transform other sectors of the global physical commodities markets.

While it wouldn't necessarily boost commodity prices, the innovation could offer a secure means of exchange of raw materials, open up channels of trade among buyers and sellers that had until now have been perceived as credit risks, and provide more transparency and liquidity to a market that has slowly lost favor among financial institutions.

The technology provides a way of accounting for financial transactions. It was developed as a means of addressing the vulnerability of stored data on exchange of assets. Many associate blockchain with bitcoin. The cryptocurrency has undergone a meteoric price increase this year, up more than 17-fold. Future contracts began trading on Cboe and CME Group this month. By Dec. 18, the January contract had soared to over $20,000.