ModulTrade is a smart-contract ecosystem that is inspired by and based on the blockchain. It is a multi-sided platform made to provide global trade solutions for small and medium-sized enterprises.
Now, blockchain itself has been around for quite a long time and it is a system with potential in itself for bringing the global trade to a new level by placing the end-to-end trade finance process on a completely new platform. However, up until now, we have come nowhere close to using its full potential.
We are living in an age where e-commerce is inevitably experiencing enormous growth and it’s definitely bringing loads of new opportunities for small and medium-sized enterprises. However, they are still forced to rely on cumbersome trust mechanisms where banks are the guarantors of trust between trade counterparties. Making trade contracts across national borders requires tremendous amounts of paperwork, high commissions and various other complications that stop small and medium-sized enterprises from entering the global trade system.
The aim of ModulTrade is to eliminate the barriers that stop enterprises from entering into the global trade system by providing all the services needed for the full B2B trade cycle in one place. It is a radical shift, but the ModulTrade model proves that it is, in fact, obtainable and technically possible.
ModulTrade aims to build a global value ecosystem using a blockchain-based technology that will bring together blockchain functionalities with real-life trade transactions. This means it will provide a network that will serve as a global trade platform providing real-time and cost-effective solutions, effectively democratizing the global market.
There are over 400 million small and medium-sized enterprises worldwide, but what stops them from trading directly and becoming active players on the global market? There are three main problems. First of all, the lack of trust between the seller and the buyer still forces these enterprises to rely on the cumbersome banking system using trade finance instruments like Letters of Credit and Bank Guarantees. Furthermore, existing trade services are made for large exporters and importers. They require a large amount of manual processing and as such, they are too complicated and too expensive to be an effective solution for smaller enterprises.
ModulTrade claims to offer solutions for all of these problems. It aims to become a platform that provides space for small and medium-sized enterprises anywhere in the world to find each other and execute transactions and trade deals in a secure and efficient manner. Furthermore, ModulTrade aims to provide easy access to additional trade-related services to the parties involved in the trade by connecting them to third parties that provide services such as logistics, trade financing, insurance, and bookkeeping.
The ModulTrade’s Value Ecosystem (MVE) could also become a place for developing new digital solutions and third-party applications, examples of which include supply chain tracking on and innovative solutions for invoicing.
In conclusion, the blockchain has already laid out the foundations for revolutionizing global trade and completely disrupting the trade finance industry. ModulTrade actually builds on these foundations providing a wholesome platform completely capable of bringing freedom to trade worldwide.
ModulTrade Value Ecosystem: How it Works and Why the World Needs it
The ModulTrade Value Ecosystem is essentially a bridge between blockchain technology and real-life trade transactions. So how do they do it? The platform is based on two essential, innovative technological implementations - smart contracts and the MoudulTrade Crypto token (MTRc).
First of all, ModulTrade Value Ecosystem (MVE) uses smart contracts to allow for credible transactions without the need for third parties. Smart contracts on the VME platform replicate Letters of Credit and Bank Guarantees, providing faster transactions, lower costs and better security. Thus, the use of smart contracts effectively eliminates the need for traditional finance instruments.
The further development of the platform would go in the direction of including third party service providers as active participants of the blockchain network. It could include services like insurance, logistics and shipment providers as well as trade financing lenders directly on the platform and in the end, make global trading an incredibly simple process for the end users - micro, small, and medium enterprises.
The ModulTrade platform would also include a Trade and Reputation network and marketplaces. The Trade and Reputation network would further facilitate transactions and collaboration by building trust based on reputation within the ecosystem.
Thus, the ModulTrade platform would be a completely self-sufficient system with the marketplaces allowing parties to find reliable partners across the world with unlimited choice and fair competition.
One of the areas where the ModulTrade platform could be further developed and utilized is Additive Manufacturing. Additive Manufacturing is something that many businesses are looking into in order to deal with manufacturing and supply chain constraints. The ModulTrade platform could provide a solution if a digital thread of the Additive Manufacturing process was created that would stretch from the initial design to the finished product. ModulTrade platform would easily provide solutions for validating data and protecting intellectual property and simplify the process tremendously overall.
So why ModulTrade? Well, let’s face it, the current global trade finance system just doesn’t work well. It supports only large corporations and large volume transactions and smaller business end up pushed out of the game. ModulTrade would change the game completely.
First of all, it will streamline global trade. It would really be a tremendous change the importance of which shouldn’t be underestimated. Using ModulTrade would almost completely eliminate the complex procedures necessary for cross-border deals, dramatically reducing the bureaucracy, the costs, and the time needed to find and connect with a partner.
Second, it ModulTrade would bring many benefits for micro, small and medium-sized business. Basically, anyone with access to the internet would be able to participate in global trade. Businesses would no longer need banks or paperwork to conduct trade, it could all be done with just a few clicks.
Finally, ModulTrade Value Ecosystem is a platform capable of providing new solutions when the need arises. By leveraging ModulTrade platform’s technological infrastructures, anyone could develop new fintech solutions.
The ModulTrade Crypto Token
ModulTrade’s goal of improving the trade finance industry is based primarily on the smart-contract platform and on the new crypto token native to this platform and used for B2B trade. It’s called the ModulTrade Crypto Token or the MTRc. It is an ERC-20 Ethereum-based token and it’s essential for enabling real-time trade and third-party applications on the ModulTrade Platform. Users on the platform can use MTRc as well as other currencies to pay for products and service as well as any other services and solutions available on the platform. It is the key element enabling global trade in real-time in this blockchain-based system.
The ModulTrade’s developers created the MTRc as a premined token. It’s only distributed during pre-sale and later through Token sale campaigns. Because of this distribution system, the number of ModulTrade Crypto Tokens is fixed and guaranteed by the token smart contract as of November 2017.
ModuleTrade Value Ecosystem is a multi-sided platform, which means it will need to reach a certain number of users in order to achieve a network effect. This number is called critical mass, and reaching it is the primary goal of the ModulTrade Value ecosystem for the period from 2018 to 2020. When critical mass is reached, the platform will be able to maintain a self-supported growth and maximize profit potential.
One possible issue with MTRc and ModulTrade, in general, could be technological scalability. Due to the technological constraints of Ethereum, it can not hand more than 13 transactions per second. However, there are feasible solutions to this problem, about which the developers of ModulTrade have already thought about. MTRc tokens could be migrated to another blockchain without the need for a hard fork. MTRc tokens could simply remain on Ethereum with a cross-chain gateway developed for interoperability. It is highly unlikely that MTRc funds would require a transfer from Ethereum to another blockchain, but this is also entirely doable.
In conclusion, the MTRc is not just a cryptocurrency for value exchange in ModulTrade Value Ecosystem. It is the key factor for enabling the growth of the ecosystem that will allow it to capitalize on the growth of the global e-commerce. Furthermore, the ModuleTrade Crypto Token complies with the most commonly accepted ERC-20 standard which means it will be easily integrated into the global cryptocurrency system. It’s compatible with all ether wallets and it can be added to most cryptocurrency exchange systems without any complications.
For more visit: www.modultrade.io
Announcement Thread: bitcointalk.org/ModuleTrade