How to Disrupt a 2-trillion USD Market with the Blockchain
The world is changing and ChainTrade, a trading platform for food and raw materials, is keeping pace with those changes by envisioning and pushing forward a brighter future.
ChainTrade is looking to break open the gates that hamper food producers, traders, metal producers etc., by moving the market to blockchain technology to create fair and equal access to basic resources around the world.
Currently many of the exchanges for food and raw materials are centralized. These monopolies tax sellers and buyers a high price of entry. This is can be destructive as demonstrated by the financial crisis of 2007 when purchases made by major investors led to tremendous increases on food and raw material prices.
As urban areas expand and farming space along with mining operations decrease, food and raw materials become more critical. This corresponds with the need for exchanges to be easily accessed by institutional investors and food producers, traders, and other stakeholders. ChainTrade will be ushering in new exchanges for these players.
A History of ChainTrade
ChainTrade began in 2016 in Singapore as part of the successful Blue Tiger group. The company is led by CEO Vincent Jacques who began his career in investment banking and was the successful creator of startup Planorama which is valued at $25 million. The ChainTrade team includes other veterans of the financial world including a former strategy director of NYSE and Euronext and experienced blockchain developers. This strong staff is pushing ChainTrade forward at a tremendous rate.
ChainTrade aims to be backed by the Monetary Authority of Singapore and has secured the services of prominent international law company Morgan, Lewis & Bockius LLP to ensure that the company is legally compliant.
The path to success is clear with an initial coin offering coming soon, a blockchain prototype already developed and a goal of securing 5% of the market share of global transactions for food and raw materials by 2020. Based on market research ChainTrade forecasts over 500 million transactions to occur by 2020. To sponsor the growth of the market the second phase of ChainTrade could be to extend into futures and options for equities, treasury bonds and other underlying financial utilities.
Blockchain and ChainTrade
By utilizing blockchain technology and smart contracts ChainTrade will simplify and standardized the market.
Blockchain technology is a new form of digital currency and ledger system that keeps track of purchases. Each transaction is given a date and time and is stamped into the chain, becoming another block. The blocks are encoded stopping it from being tampered with.
Every transaction is validated across a peer to peer network preventing duplication and double spending. The peer to peer network decentralizes the system preventing monopolies from arising. Blockchain technology clears out the need for regulatory bodies cutting down the cost of an exchange by at least 80%.
ChainTrade will use a blockchain based on the Ethereum network, which helps fuel the validation process. Ethereum is one of the largest cryptocurrencies in the world, almost overtaking the original cryptocurrency, Bitcoin.
Buying and selling Smart
The company will be using smart contracts to regulate trading. Made possible by the blockchain technology, smart contracts are a computer protocol that executes a contract. The smart contract can be seen by all the users on the blockchain making the entire process transparent. This prevents back and forth negotiations and approvals.
Smart contracts put users together so when one user wants to buy X amount of corn and a second user wants to sell X amount of corn the smart contract will put the buyer and seller in touch and automate the transaction. This creates faster transactions with less bureaucracy. Simply put smart contracts cut down on costs by making buying and selling more efficient.
Each contract is assigned arbitrators in case of the rare dispute as well. A dispute will be resolved within two weeks and most of the time within a few days. Each smart contract will have the arbitrators listed for buyers and sellers to review. Buyers and sellers will be able to engage in the market with their eyes wide open and will know exactly what they are getting into. This information is empowering and levels the playing field for all the players.
Getting in on the ground
ChainTrade is offering an ICO, or Initial Coin Offering, and is selling tokens to be used in its market. Initially valued at 1 Ethereum for 1,000 CTC (ChainTrade Coin) the ICO is a way for ChainTrade to gain funding and for the buyer to have real concrete value with the company. Because of the exchange between Ether and CTC, buyers will have a liquid asset making investment low risk and high reward.
The team plans to list the token on a variety of crypto exchanges including Poloniex and Bittrex. ChainTrade will be capping the number of tokens which incentivizes early investors. The token should continue to gain value as ChainTrade expands throughout the world.
Getting early access to tokens also means getting early access to transactions. Possibilities open for token holders to buy and sell. Early investors will get the chance to be the first people in a brand-new market with new more fair rules of play.
ChainTrade changing the World
ChainTrade will revolutionize the market in a big way paving a way for everyone to be involved in a free market. By using smart contract and blockchain technology the future of exchange for food and raw materials looks bright.