Recently, the term blockchain has been thrown around like a hot pancake. Anyone looking into this technology, knows that it is a disruptor but just how much and/or soon is yet to be experienced. Recently, Clinch founders have attended local meetups where Blockchain enthusiasts gather to discuss future uses for the technology. Supply chain management is the next industry fully realizing just how much potential it has if it integrates to some kind of Blockchain. Integrating a digital supply chain into the Ethereum or Bitcoin would mean a hefty reduction in fees and an increase in security. No more would firms have to pay processing fees to trusted third-party.
It’s Peer-to-Peer information transmission makes all information impossible to manipulate, where interaction occurs directly between peers (other computers) instead of through a central node. Each node stores and forwards information to all nodes, meaning that once a transaction is entered into the database and the blockchain is updated, the records cannot be altered, because they are linked to every transaction record that came before them – hence the term “chain”. Clinch Logistics is aware that through the Blockchain lays the path forward for digital supply chains, and Clinch is prepared to embrace this change.
Here, let’s make a jump into the blockchain world. As I described above the blockchain is the obvious next step towards full digitalization. Let's proceed by creating a new virtual currency for our private blockchain. A currency that would represent the logistics industry of the 21st century, one that remembers every transaction and doesn't have to be squeezed from third-parties that don't add value to real-world, physical operations.
The value of this new virtual currency is dependent on the hard work provided by actors in the community and the contracts used to fulfill this work in this web of information nodes. For the time being, we will call our new virtual currency “Logicoins”, and let’s assure that if you want to do business with Clinch Logistics you would have to buy Logicoins in our platform – either through cold hard cash or another virtual currency such as Bitcoin or Ether. Our company – Clinch Logistics’ entire business operations would be coded in the blockchain, very similar to structuring a company in the real world through legal contracts but in this case it would be code and a set of rules that reflect the values of our logistics community.
There are two levels to Logicoins
1. On the top, we have a currency that is used internally in a community, to pay or barter for work and collaboration and share the value being created. Here is where the capital gain is created.
2. This added value or capital gain can be paid in Euros or Bitcoins for example.
The important part for Clinch is to focus only in being the nexus for this new currency
Tracking every transaction
For the global logistics industry, this is the main feature of the blockchain. In essence, there is a timestamp on each transaction that functions as a notary which then hands out a certificate that vouches for the fact that a certain data set looked a certain way at a given time.
For Clinch Logistics to succeed as a blockchain integrated platform, we need to provide services, i.e. move containers. Our community of hard working logisticians would then come forward to provide the services needed to complete a container movement operation, and through smart contracts we would pay them in Logicoins accordingly.
Having a common currency has many benefits. If a third party that wants to move cargo sees the great job that our logistics community is doing and decides to join, he/she would have to pay EUR, USD, Bitcoins or Ether to join. This in turn would strengthen Logicoins’ trust and inject value directly to the community by increasing the number of actors trading value inside the blockchain.
In the blockchain you would save any transaction costs on finance firms are making a fortune right now:
· Payment networks
· Stock Exchanges
· Money transfer services
Logicoins is backed by real value being provided by hard-working people in the logistics sector. You cannot speculate on the fluctuation of its value and the best part – it’s tax free! If you think the blockchain will not be a new main contributor of a healthy rise in international trade. Think again.