Questions & Answers
All your Frequently Asked Questions in one place. We try to update them as often as possible.
Where is CargoX based?
CargoX has two main offices. The CargoX Foundation is based in Hong Kong, and the main operational legal entity and development office is based in Ljubljana, Slovenia.
Are you related to the CargoX shipping company from Brazil, or CargoX PTA from Spain?
No, we are not. When we bought the CargoX.io domain, the Brazilian CargoX was not very visible, nor was Cargox PTA, which holds the Cargox.com domain. Our lawyers have verified their trademarks, and we are happy to report that there is no need for concern.
Do you only handle sea freight?
Yes, the platform is currently specialised for sea freight only. We have expertise in other domains, such as air, road, and railroad freight, and we are evaluating expansion strategies with our partners.
Do shipping companies need to have a blockchain expert employed to use your service?
Absolutely not. The use of our CargoX Smart B/L™ platform is extremely easy and only requires a brief educational course. But, companies do tend to research the technology to feel comfortable with it. In such cases, they might hire a blockchain expert. We are always willing to provide in-depth support and explanations of the technology our Platform runs on.
Smart Bill of Lading (Smart B/L™) related
Why is it important to reduce shipping time for Bill of Lading documents from weeks to minutes if the container cargo on a ship travels for many weeks anyway?
While it’s true that many shipments take weeks, there are plenty of cargo shipping routes that only take days to deliver their cargo. But there are many other advantages of fast delivery of the Bill of Lading. Companies might sometimes wrongly estimate the time they have available, and documents delivered too late can really endanger a business’ stability, as the extremely high additional cost of demurrage or cargo hold in the port can rise to excessive amounts. Especially if a paper BL is stolen, it can take weeks to receive a new document. In all these cases a Bill of Lading delivered within minutes across the globe can help prevent a business catastrophe, while also freeing up company staff to work on other projects.
What are the barriers in accepting your service as the legal equivalent of an actual paper Bill of Lading?
Digital solutions for Bills of Lading or similar documentation are accepted as adequate throughout the world in most countries. We have held working meetings with logistics companies, exporters and importers, shippers and shipping line operators, and we are also in talks with customs offices throughout the world. One of the most important pieces of the puzzle is getting approval of conformity from protection and indemnity insurance clubs (P&I clubs) - we are one step away from acquiring that approval. This will add a further level of trustworthiness, as customers will be able to start using our solution without worrying that the technology is too advanced and not yet accepted as standard in the shipping industry.
Is the CargoX.io project open source?
The CargoX dApp and relevant smart contracts are not open source. That is how CargoX defends its intellectual property, to use it fully for the project’s advancement.
Is the actual product functional? Or is it only theoretical?
The CargoX Smart B/L™ platform was deployed to public use in November 2018. The platform is fully functional and customers are already on-boarded and using it. Register or sign in to use it at https://smartbl.io.
Does your solution make screening easier, or are documents just scanned instead of digitised?
Documents are stored in digital form, either as XML or PDF, but customers can print them if they need them in physical paper form.
How will you solve this issue if the customs authorities in recipient countries require the original documents?
Customs do not need the original B/L and we know this for certain for 95% of countries - and in most of them there are initiatives to start using blockchain-based Bills of Lading. Sometimes customs asks for a copy of the document, which is a PDF or a copy of a Bill of Lading, and such a copy can always be printed from the CargoX Smart B/L™ dApp. The original Bill of Lading is only needed to release cargo and is requested by the release agent. They need to know who the owner is, so they do not release cargo into the wrong hands.
Where can I get the most technical detail about the platform?
You can always get insight with the CargoX Business Overview and Technology Bluepaper. If you are a customer, you can take a look at the CargoX Smart B/L API documentation.
You are proposing to be the arbiter between parties in disputes. Wouldn’t there be industry concern about being reliant on a single party for arbitration?
Yes, we agree. We cannot be and we do not want to be an arbiter. We just provide the technology to create, view, edit, transfer, state ownership of, and archive blockchain-based Bills of Lading. Everything else is up to judiciaries and business institutions.
How exactly does it work when we are a shipping company and want to join you?
We are open to new partnerships, please contact us through this form: https://cargox.io/become-a-partner
Will you implement atomic swaps for the Bill of Lading tokens?
Why do you use blockchain technology and not just a regular database?
We use the open and neutral public blockchain technology in the form of Ethereum Network for the actual value transfer. Every Bill of Lading carries value (equal to the value of the cargo), and we use blockchain to transfer this value, just like sending a token on blockchain. Such an immutable, transparent, safe, and tamper-free solution would not have been possible if built with regular software and traditional database technology.
CXO token & economy related
How many CXO tokens are there in circulation?
During the ICO there were 215,119,015 CXO tokens minted. There will be no new token generation events. All tokens are now unlocked. As described in our whitepaper, CargoX holds around 25% of those CXO tokens, reserved to fund future development. Because the CargoX Smart B/L™ platform has been live since November 2018, tokens are already being burned to facilitate the generation and sending of Smart B/Ls™, as was foreseen in the CargoX technology overview bluepaper. You can check the current circulation supply and amount of already burned tokens on the CargoX CXO Tokens page.
Will you ever mint another batch of CXO tokens at a later time?
When will the remaining tokens be unlocked?
All CXO tokens are already unlocked.
Which crypto wallets are supported by the CXO token?
CXO is an ERC20 token, so every wallet that allows you to add a custom ERC20 token and for which you hold a private key (or for which you can export one) should be fine. You can consult a list of supported wallets at https://cargox.io/wallet-CXO-token-support.
Will you distribute the profits or part of CargoX’s profits to token holders through buyback, burn, ETH dividends, or other mechanisms?
CXO is a pure utility token, and can at any time and by anyone be redeemed for the use of CargoX services through a smart contract. As such it is a vital part of our platform and our software. A part of CXO tokens used in creating and using a digital Bill of Lading documents gets removed (i.e. burned). We believe in building a service that will provide more and more value to its users and we intend to innovatively entangle our token mechanics with core interactions on our platform, wherefore the supply of CXO tokens should decrease with time. The more successful the platform, the fewer CXO tokens will exist.
What happens if the CXO price rises dramatically? Will the CargoX Bill of Lading become uncompetitive?
The price of our Bill of Lading and other future services is set in USD and EUR. For simplicity’s sake, currently all customers purchase Bill of Lading credits in USD or EUR (while it remains possible to pay for services directly with CXO). CargoX handles token purchases for customers as described in detail in the bluepaper. Because the price is fixed in USD/EUR, the amount of necessary CXO tokens varies with the exchange rate of the CXO.
Where will shipping firms get CXO tokens from?
Most customers decide to purchase BL credits in USD or EUR, and CargoX then facilitates their purchase of CXO. Companies get a balance of BL credits on their account (and can spend them for creating/sending documents), and CargoX sends the necessary amount of CXO from the treasury to the smart contract. Again, for a detailed explanation, please consult the bluepaper. However, companies can always decide to purchase CXO tokens through exchanges, and they can pay for BL credits with CXO tokens directly.
How will CargoX earn money if the CXO tokens are already sold?
CargoX is earning money by selling the possibility to create, transfer, view, and archive Smart B/Ls™ on the CargoX Smart B/L™ platform.