Trade is an activity of exchange of goods and services based on mutual agreement without coercion from any party. Trade is also an activity that has long been known by humans. In the early days before money was discovered, the trade in goods was called barter of trading goods with goods. In modern times trading is done with money changers. Each item is valued with some money. The buyer will exchange the goods or services with the amount of money the seller wants. Usually the seller will judge an item from the process he got the item. The goods can be obtained from the production process. This costly production process will become a benchmark by the seller to judge an item with additional profit that the seller receives. The process is a traditional trading activity that occurs between the seller and the buyer.
For the present trade will be more complex where in addition to high cost production there is also a so-called distribution. Distribution is the activity of distributing goods from producers to consumers through a region, country and even continent. The process of distribution to the whole world is also often referred to as global trade. This global distribution or trade process requires a high cost because it will be subject to high entry fees in various regions spread across the world and the complexity that makes global trade less effective and efficient. In addition, if the goods have been distributed throughout the world the next emerging problem is the financial payments that will be received by the manufacturers who have made and distributed the goods to the world. So that can be drawn problems or challenges that appear in three major points namely
- Lack of trust
- High entry costs
- Complexity of trade related operations
For small businesses it is a challenge that must be faced in the present. To respond to these challenges we advise small business actors to use ModulTrade. Because ModulTrade responds to these challenges through four main components:
- Blockchain based Smart-contract platform
- Trade related services platform
- Trade & Reputation Network
- Marketplaces
About ModulTrade
Small, micro and medium enterprise (MSMEs) entrepreneurs all over the world want to enter the global market and make trade agreements easily and effectively and efficiently. They must meet each other to do so. The meeting will cost and also the time that can be passed by using ModulTrade. ModulTrade is an open, automated, and transparent trading finance platform, which replaces a cumbersome trust mechanism with automated checks and guarantees, now a technical possibility.
ModuleTrade is a new approach, informed by blockchain logic, can bring a huge transformation, an established but limited business continues. Placing an end-to-end trade finance process on a new platform will have a very clear purpose: to offer all exporters and importers quick and easy access to credit issuance and consulting services.
MSMEs become a part of Global value chains (GVC) supported by e-commerce development The opportunities for MSMEs in the global marketplace and value chains are enormous: it exposes them to a large customer / buyer base, as well as opportunities to learn from large firms and from engaging and surviving in the up and coming sectors of the global marketplace. Selling through digital channels can productivity gains that the McKinsey Global Institute (2013) has estimated at between 6 and 15 per cent.
Technology and regulations are democratizing banking industry towards Fintech Another catalyst for this kind of disruption is the Second EEA Payment Services Directive (PSD2) whereby Fintech providers will become Account Information Service Providers (AISPs) themselves which makes it easier, faster and less costly to handle customer's' payment transactions and account related data. PSD2 will allow the MTP (ModulTrade Platform) to interact with customers’ accountswithin secure processes without banking intermediaries thus increasing efficiency and lowering transactions costs.
ModulTrade’s Value Ecosystem(“MVE”)
Leveraging on smart-contract blockchain-based technology, ModulTrade will build a value ecosystem for global trade, i.e. a digital networked value structure that is real-time, global, connected, digital and cost-effective, with features to support further fintech solutions developed by third parties. This solution will enable MSMEs to increase their revenues whilst reducing the costs of global trading. It will also enable third party developers / service providers to gain access to a wider target of users / clients, while reducing development and user acquisition costs. In this framework, the MTRc will be used as a key for the users to connect to the global trade network and to transact in ModulTrade ecosystem.
MVE aims to connect participants to trade globally via four main components:
- Blockchain based Smart-contract multi-sided platform (MTP): to replicate banks’ trade finance instruments (Letter of Credit and Guarantee) and to offer MVE participants this service in a trustful and cost-effective way while also connecting them to other services like logistic and insurance;
- Trade related services platform: to simplify trade execution via 3rd party service providers (e.g. payments, logistic, financing, tax, bookkeeping);
- Trade & Reputation network: to facilitate monetary transactions of MVE participants within their reputation capital being a function of users reputable collaboration within the ecosystem;
- Marketplaces: to find reliable counterparties globally and to make optimal choices of goods & prices.
The MTRc
The ModuleTrade Crypto Token (MTRC), an ERC-20 token issued on Ethereum, is a key element of the new ModulTrade multi-platform B2B platform, allowing users to connect to the ModulTrade platform and ecosystem and to transaction effects. MTRc will be a sign that will be distributed only during pre-sale and Token sales campaigns. Therefore, the number of MTRc tokens will be ascertained by the end of November 2017 which will be secured by the smart contract token. The more trade transactions are made through the ModulTrade network, the more MTRc requests will increase, thus increasing the trade flows presented in MVE.
Technical concept of Modul Trade solution
A simplified Letter of Credit protocol
The purpose of a ModulTrade smart contract is to lock funds from a Buyer and release them to a Seller upon delivery of a Product to the Buyer. The simplified workflow of the contract is as follows.
- The Buyer deposits funds into the smart contract which acts as an escrow agent.
- Funds are locked in the smart contract until release conditions are met.
- Funds are released to the Seller upon successful delivery in a specified time horizon.
- Funds are released to the Buyer if no delivery occurs in a specified time horizon.
In conditions when funds are blocked in a smart contract which acts as an escrow agent, the ultimate goal of the parties becomes to release the blocked funds from the contract to themselves as soon as they both agree that the trade has been successful. In this case, the ModulTrade smart contract plays a role of trusted middleman helping to eliminate a costly trust counterparty, traditionally, a bank or a marketplace agent. However, in the absence of a middleman, it is only the counterparties themselves who know if their interests have been respected. This brings a number of counterparty risks which should be handled accordingly. For example,
- Deposit from the Buyer was received, the Shipping Agent received the product, but failed to deliver it to the Buyer on time or at all.
- Deposit from the Buyer was received, but the Seller didn’t send the product on time, didn’t send it at all or sent a wrong product.
- The Buyer claims that he or she received wrong/improper product while the Seller shipped the proper product.
Who should receive what if one of the above cases takes place due to an unintentional error or intentional fraud? Who decides on the fair outcome?
Initially, ModulTrade is going to mimic the logic of a letter of credit and its original trade contract will ensure that sellers are getting paid unless they continuously misbehave and their reputation slumps. Further, elaborate protocols based on mutual consensus outlined below will be added.
Tokenlaunch
Distribution plan
There will be a limited supply of 100 million MTRc in total. Part of it will be distributed through Pre-sale and Token sale in 2017-2018.
- up to 10,000,000 tokens will be distributed during the Pre-sale.
- up to 20,000,000 tokens will be distributed during the Token Sale.
No more MTRc distribution will be done after the Token Sale ends.
The price of MTRc is set as follows:
Token price: 1MTRc = 1ETH/700
During the sale period the following pricing mechanism will be applied:
The number of tokens allocated to each subscriber will be determined at the end of the Token sale period.
During the Token sale MTRc tokens will be distributed in the following way:
Distribution 30% (Pre-sale-10%, Token sale 20%);
Product development 20%;
Ecosystem creation 32%;
Team 15% (5% will be distributed within 6 months after the Token sale is finished, 5% will be released after the 1st year, 5% — after the 2nd year);
Advisory 3%.
Roadmap
Modultrade is the result of a team collaboration. The 4 MIT team mate founders decided to move forward on the original idea of trade finance. This decision gave birth to Modultrade in April 2017. In the meantime, a team of talented and highly skilled professionals joined the startup and contributed, with the founders, in shaping the vision and putting together founding documents and prototype to move ahead with the idea.
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Username Bitcointalk : Arifandi
Bitcointalk Profile : https://bitcointalk.org/index.php?action=profile;u=1566717
ETH Address : 0x8d05B599687942Ed4EC008a95EEAa9565B738924
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