According to a report by the World Trade Organization, the global shipping industry is worth over 12 trillion dollars. The trade is only increasing year by year. The huge volume of trade and finances involved would normally lead one to believe that the system is very efficient. This, however, is not the case. The whole industry is still paper-based. Whole courier and shipping documents are in hard form, which are then sent to destination countries. Even the most swift courier services take time. If a document is missing upon ship’s arrival, each day’s delay means hundreds of thousands of dollars in lost money due to unnecessary anchorage fee, custom storage charges, container fee and much more.
Another crucial inefficiency is the reliance on traditional banking channels for monetary transactions. LCs, billings and other financial transactions rely on banks that can take days, sometimes weeks to process and transfer money from one country to another. The delay is further extended if the sending and receiving banks are not on the same international network.
These ancient systems and delays also create a perfect opportunity for ill-intentioned parties. Counterfeit materials, not transferring money, tampered documentation and other fraudulent activities always create an atmosphere of mistrust.
CargoCoin: Efficiencies Through Blockchain
CargoCoin is a decentralized network that is based on blockchain. Through the distributed ledger technology, CargoCoin intends to remove the inefficiencies plaguing the shipping industry. It does this by:
- Securing Information: Blockchain’s inherent ability to encrypt immutable data comes in handy. Any documentation created on the platform will be tamper proof. This means that when information is put in, it cannot be altered and is readily available.
- Minimizing Delays: Always available documentation and instant transfer of money means that delays will be virtually eliminated.
- Lowering Costs: A platform that does not need printing fee, eliminates banking intermediaries and brokers, CargoCoin will drastically reduce the costs involved in auxiliary shipping services.
- Fraud Reduction: Since data on the platform will be immutable and money will be transferred through automated smart contracts, the chance of one party to fraud another or any other regulatory bodies will not be possible.
CRGO: The Cargo Token
CargoCoin will be powered by its native CRGO token. This will be the mode of monetary transactions within the system. The token, unlike other Ethereum based ones, is not ERC20 compliant, but ERC223 standard. This means that the token is one of the most secure one ever to be created on the Ethereum.
Visit the website for more information: https://thecargocoin.com/
