Moving cargo from one place to another can be a complex process that involves an entire network of transportation, many people and cargo ships. Sadly, the process is outdated and little interest was shown towards modernizing it. Technological advancement has completely reshaped many industries and it seems as if the shipping industry got left aside. However, a new project has decided to take the road less traveled by and link the physical world of trade and transport with blockchain.
Meet Cargo Coin
According to their White Paper, CargoCoin is designed to be a smart contract, crypto currency platform, decentralizing global trade and transport. The platform target is to facilitate and optimize the interaction between traders, freight forwarders, shipping lines, booking agents as well as all other parties involved in the international trade and transport of commodities and cargoes.
Even though the transport industry has a global seaborne trade value of over $12 trillion according to WTO statistics, it is also the least technologically advanced one. Bureaucracy makes all shipped cargos have their own paper documents that are send by couriers, an outdated method that takes both time and money. Aside from this, the payment method for cargoes is made via bank transfers or letters of credits, which is expensive, slow and non-confidential and sometimes transactions can be blocked for weeks between banks. Aside from the delays and high costs of procedures, there is also the risk of fraud and even depreciation of assets and opportunity cost. Both senders and receivers can be stressed and frustrated by all these matters that can occur during a simple process that can turn out to be very difficult.
The solution is brought to us once again by the original implementation of the blockchain technology. The ecosystem behind CargoCoin comes with solutions to existing problems. A smart escrow utility will help reduce fraud and payments will not be released until the counter parties’ pre-set conditions are met. This will also significantly reduce costs and minimize delays, because the blockchain always work 24/7 and does not depend on human intervention. The usage of Ethereum blockchain will make CargoCoin trustable, secure and provide a safe archiving of all transaction ever conducted.
The core part of the project is the shipping industry platform, that will utilise Smart Contracts and connect importers, exporters, freight forwarders, booking agents, ship brokers, ship owners and so on into a single marketplace.
However, CargoCoin development has planned to include an Inland platform that will cover all ground based transport, such as trucks, railroad and pipes; an Air cargo platform, that will focus on cargo planes, cargo choppers and drones; and a Cargo all-purpose platform, a marketplace that will allow manufacturers to showcase their produce and connect them directly with customers, through an established link to the ship and inland transport platform.
CargoCoin is built on top of Ethereum blockchain and will use the newest ERC 223 token standard that brings major improvements compared to the previous ERC 20 token standard. The CargoCoin tokens will power the CargoCoin Ecosystem by providing the solid foundation for decentralized instant crypto transactions.
Sadly, USD and EUR international transactions have become increasingly slow and funds are often stopped by US intermediary bank, transactions can be quite expensive. CargoCoin will solve this problem by allowing crypto payments that can be used to utilize trade freight payments, cargo value payments between traders, importers and exporters and even service payments such as insurance, ship supplier’s provisions, ship agents, crew salaries and so on.
Behind CargoCoin lies a highly motivated team, carefully selected in order to successfully unfold the full potential of the CargoCoin project.
Bogomil Alexandrov, the first founder, has over 20 years of experience in financial software development. He is a blockchain developer and a specialist in software and finance.
Martin Iliev, the second founder, has over 18 years of experience in logistics, shipping and international trade. He is also a ship owner.
In conclusion, CargoCoin is a solid project with a huge potential that plans to upgrade the physical world of trade, transport and logistics with the use of blockchain technology. CargoCoin will replace the outdated paper documents with modern smart contracts and will provide secure escrow payments throughout the process.
CargoCoin is currently undertaking ICO and you still have the chance to be a part of this project since its early stages. However, I highly encourage you to do your own research, starting with their website https://thecargocoin.com and White Paper.