CargoCoin

CargoCoin – BLOCKCHAINING LOGISTICS

The CargoCoin platform links the physical world of trade and transport with the blockchain.

CargoCoin’s foundation is based on two main pillars – the first pillar being the online platform allowing for various parties to connect and exchange information on cargoes, their transport needs, as well as supplemental services. The second pillar are the smart contracts: those can be used as just an electronic mean of recording the whole process from the offer to the delivery, or could additionally be used to facilitate the actual payment, being it a direct payment, escrow payment or escrow payment with partial funds release at various stages.

It is designed to attract a wide user base from a multi-billion dollars B2B marketplace by introducing and implementing free online services. The CargoCoin platform users’ interaction in the services sections naturally delivers demand for the platform’s smart utilities. These smart utilities are facilitated through CargoCoin tokens. The aim of the platform is to bring maximum demand for CargoCoin tokens. Through demand for the tokens the CargoCoin ICO supporters receive added value.

CargoCoin is designed to be a smart contract, crypto currency platform, decentralising global trade and transport. The platform target is to facilitate and optimise the interaction amongst traders, freight forwarders, shipping lines, booking agents as well as all other parties involved in the international trade and transport of commodities and cargoes. The platform users experience outlines well-balanced ecosystem based on cutting edge crypto security and frictionless interaction.

CargoCoin objective is to provide a global marketplace environment and utilities for facilitation of trade, transport, exchange of documents and payment options at low cost in real time. The platform architecture is based on the principles of high level of security, transparency, traceability and accountability. It is set up in a way that the participants can take advantage of any part of it alone, or in combination with other sections. It can be used as a very simple platform or as a complex smart contract utility with various payment options. The link between physical trade and transport with online crypto technologies delivers the opportunity for implementation of a large scale project and allows for further expansion.

CargoCoin platform options provide infinite possibilities for added value to the users and the participants. All utilities on the platform operate with CargoCoins. The ultimate aim is boosting demand and facilitating the usage of the tokens. CargoCoin Team interest is set in line with the interest of the ICO supporters!

What is CargoCoin?

The full scale scope of the project extends to all trade and transport areas i.e. the shipping industry (containers, bulk, break bulk, liquid bulk), inland transportation (trucks, railways), air cargo (transportation by planes, drones, etc.), other types of “new age” transport such as pipeline transport, space cargo, intercity and outer city shared rides. Dedicated platforms for the different types of transport will be interconnected, allowing for infinite functionality. The objective is the creation of synergy between the commodities & cargo traders with all transport means on a global scale. The integration of all participants and utilities delivers unique, FIRST of its kind Ecosystem.

CargoCoin is designed to utilise the platforms, both as a secure transfer and storage method by the means of smart contracts, as well as a payment unit for services, freight and cargoes. The CargoCoin concept fully unleashes the potential of block chain crypto currencies to act, not just as a means of payment and store of value, but also as an interactive way of sending, receiving, approving, rejecting and signing documents through the process. CargoCoin is to be based on the newest ERC223 token standard. It has major improvements compared to the ERC20 token standard. The ERC 233 allows for more advanced, precise and universal handling of smart contracts, required for the project, while avoiding potential token traps. The issued tokens are designed to fully act as smart contracts programmed in Solidity and available as open source for everyone to review and inspect the code, thus serving all purposes of the project simultaneously.

The CargoCoin platform links the physical world of trade and transport to the blockchain.

The size of the transport industry is tremendous – the global value of the seaborne trade itself is over $12 trillion (WTO statistics). The value of freight rates is USD 380 Billion is 2017 (UNCTAD). Although the shipping industry is one of the largest economic sectors it is the least technologically advanced one. Today paper documents are issued for all shipped cargoes, no matter of the transport means. All original documents are being sent by couriers, taking time and money. All cargoes and freights are being paid for in traditional ways – via bank wire transfers or letter of credit. Those are expensive, slow and nonconfidential methods. Increasingly more often USD and EUR transactions are being blocked for weeks by US correspondent banks. Anyone in the industry has encountered that problem. Original documents delivery delays and money transfer delays cause unaccounted extra costs, opportunity cost & depreciation of assets, while disturbing a long supply chain. The CargoCoin blockchain technology delivers revolution of the trade & transport by fostering optimisation. It will eliminate a number of problems:

1. Reducing Fraud – CargoCoin minimises the risk of fraud and in many cases completely liminates it, by not releasing any payments until the counter parties’ pre-set conditions are met & publicly available proof of the payment has been made or secured in a smart escrow utility. Payments will be guaranteed by default. Fraudulent endorsement and duplication of ownership documents is ruled out.
2. Lowering Costs – CargoCoin will significantly reduce costs, compared to high percentages and other fine print fees that are charged through the whole process by banks, couriers, insurers, brokers, agents, lines, etc. Guaranteed payments will not incur any costs, as it is the case with Bank L/C at the moment.
3. Minimising Delays – CargoCoin avoids the delays by providing instant exchange, review and approval of documents and payments between the parties involved. Further delays are caused by different time zones, different public holidays, etc. The blockchain is always at work 24/7 and does not depend on human intervention. It is estimated that payment delays alone cost around $19 billion per year (*UNCATD) in losses.
4. Increasing Trust – CargoCoin relies on the public infrastructure of the Ethereum blockchain, backed by thousands of people in a peer-to-peer decentralised infrastructure. Using a proven and trusted technology speaks for itself.
5. Securing Information – CargoCoin is naturally secured. It relies on the blockchain’s proven hashing algorithm technology. There is no possibility of sensitive commercial information leakage by intermediaries, such as banks, brokers, agents, etc. While it is fully confidential it also allows for full publicity of the transactions details that are to be visible by all parties and the public.
6. Safe Archiving – CargoCoin, not just allows but fully relies for full historic storage of all transactions ever conducted, thus avoiding risks of physical loss or destruction of paper documents, while at the same time allowing for easy searching and reviewing past information stored in the cloud.

Flexibility – CargoCoin is flexible and allows the parties involved to easily select the terms that they choose to interact with. Options for standard or custom negotiated terms, conditions and forms will boost the user experience. Elimination of language barriers will further facilitate the eco-system participants.

Development of CargoCoin

CargoCoin development has been set in the following stages:

1. Shipping platform – development of the global shipping platform, utilising Smart Contracts (Smart Bill of Lading, Smart Letter of Credit, etc.), referred to as the platform in this whitepaper. The platform connects importers, exporters, freight forwarders, booking agents, ship brokers, ship owners, etc. into a single unified marketplace.
2. Inland platform – development of the global inland transport platform, utilising Smart Contracts. The inland platform will cover all ground based transport, such as trucks, railroad, pipes, etc.
3. Cargo all-purpose platform – development of a marketplace, utilising Smart Contracts, allowing manufacturers to showcase their produce and connect them directly with customers, through an established link to the ship and inland transport platforms.
4. Air cargo platform – development of air cargo transport, utilising Smart Contracts, including cargo planes, cargo choppers and drones.