Questions & Answers
Atomic swaps will enable cheaper, faster and safer exchange transactions between different cryptocurrencies. The technology is still in the prototype stage and we are monitoring it closely. Since our token will be an ERC 20 token, we will rely on the capabilities of the Ethereum network, especially the Raiden network.
We are confident that it will be crucial in the future to eliminate any friction in exchange to and from several other cryptocurrencies, tokens and fiat. Hence, we are following the progress made by other development teams (e.g. altcoin.io, ace-platform.com, tokens.net). Since our primary innovation is in the shipping industry, we believe in establishing long-term partnerships with projects that are developing customer friendly solutions that will enable fast, secure and user-friendly exchange and will in future take care for adaptations to the newest exchange technologies, like atomic swaps.
E-waybill Bill of Lading can not resolve the trust issue. If an importer has a Bill of Lading that means the importer has paid for the goods to the exporter... If the importer doesn’t have the Bill of Lading, there might be many reasons behind this and in the worst case the exporter can claim the goods back from the logistics provider...
There are several versions of this document. There is also the seaway bill (and others) which doesn’t need to be presented physically. However, the Bill of Lading is the only guarantee the exporter has that he will get paid for goods produced.
Having the Bill of Lading on the blockchain means that it cannot be stolen or lost, its ownership and authenticity is 100% verifiable by anyone, meaning that it can be highly trusted (emails can be spoofed on the other hand). Also, it means no more scanning of documents, thus it is time saving.
And we don’t even focus on shipping lines: our target group are freight forwarders, which issue more Bill of Ladings than shipping lines. One function of blockchainised Bill of Lading is, of course, release for cargo, but apart from that, you can have the benefits of tracking (location, movements, temperature, origin/producer) and on top of that you can add value added services such as storing, insurance, QC and, later also financial settlement or 'escrow' directly on the blockchain. And with that you step away from 'just' a Bill of Lading and get a very useful supply chain tool.
We believe in building a service that will provide more and more value to its users and we intend to innovatively entangle our token with core interactions on our platform, which are the creation and utilisation of digital Bill of Lading documents.
Our token is a part of our digitised business model, a part of our software and we do not believe that destroying assets is the right way to do business.
Our aim will be to minimise the transaction costs of such interactions, to provide better matchings and to provide trust — of course, leading to a bigger and bigger CargoX ecosystem. But this does not mean that we will be passive in regard to CXO tokens — we are planning to use them mostly to actively incentivise the launch of our platform and later incentivise its growth; to provide better and better utility for token owners.
So, the answer to your question is no, we are not planning to distribute profits to token holders, we are not planning to burn the tokens or put in place a mechanism to do a buyback. But we will do our best (e.g. using the substantial part of platform's profits) to grow our user-base and design CXO utilities in such a way that more and more users will be active on our platform.
Please note that both, dividends and promise of buyback or burning tokens to push the price up can do more (long-term legal) harm to the project than (short-term) benefit. We will wait for the regulators to perform proper scrutiny of such practices and will consider their response while designing our incentivisation mechanisms.
Going directly to carriers (Maersk, MSC, CMA,...) would keep things slow because of the regulators. But we have done it it differently. We will approach logistics companies who can accept this without any issues, as long as they are certain that the one claiming the goods is the only one with this Bill of Lading token. And this is easily done in blockchain. Just like sending eth from one address to another. So the exporter will send ‘Bill of Lading token’ to importer once he gets paid. At that moment he will no longer have it, only the importer will. And it is archived for a certain period of time – a benefit available to token holders.
In the second phase, we aim to address that “once he gets paid” part, as currently this action is clearly based on trust. Once we integrate onchain payments, the Bill of Lading smart contract will detect payment, and change ownership of the Bill of Lading from the exporter to the importer automatically. No need to trust anyone, and no need for expensive escrow like L/C (bank's letter of credit).