IMPORTANCE OF LIVESTOCK PROVENANCE FOR FINANCIAL INCLUSION

According to McKinsey[1] report in 2010, there are 2.5 billion unbanked (population without bank account and access to formal financial services) in the world and in 2016, according to KPMG[2], only 27% of Southeast Asia’s population have a bank account. Six countries — Myanmar, Cambodia, Laos, Vietnam, Indonesia and Philippines — share 2 common characteristics. Only between 20% to 35% of the population in some of these countries have bank accounts and yet all of these countries have more than 100% mobile penetration. The invention of Bitcoin followed by a myriad of Bitcoin inspired blockchain technologies and smart contract platforms have opened up the possibility for more creative form of grassroots-based inclusive financing solutions that can truly serve the underserved.

根据2010年麦肯锡报告,世界有25亿人是非银行账户人群(没有银行账户和未获得正规金融服务的人)。根据2016年毕马威会计师事务所的统计,只有27%的东南亚人口有银行账户。 六个国家 — 缅甸,柬埔寨,老挝,越南,印度尼西亚和菲律宾 — 它们有两个共同特点: 这些国家中只有20%至35%的人口拥有银行账户;但所有这些国家的移动渗透率均超过100%。 比特币的发明随之而来的是无数受Bitcoin启发的区块链技术和智能合约平台,为基于群众的普惠金融解决方案提供了更多创造性的形式,真正为为受到完善金融服务的人群提供金融服务。

There are 5 elements in addressing the financial inclusion problem[3]. Firstly, there must be a way to create safe and secure store of value, i.e. an account. Secondly, there must a secure and trusted way for funds to be transferred between accounts. Most mobile payment wallet applications are designed to address the first two elements. The next two elements are the ability to borrow without credit history, and the ability to grow their money through savings and investments. The final element is the ability to protect one’s assets through insurance. The key to achieving these goals is driving adoption of technologies that enable these 5 elements and InfoCorp aims to create a financial service delivery mechanism that can unlock financial access for the unbanked.

解决普惠金融问题有5个要素[3]。 首先,必须有一种方法来创建安全可靠的存储价值,即一个帐户。 第二,必须有一种安全,可信任的方式,在资金之间转移资金。 大多数移动支付钱包应用程序旨在解决前两个问题。 接下来的两个要素是没有信用记录的借贷能力,以及通过储蓄和投资增长资金的能力。 最后一个因素是通过保险保护资产的能力。 实现这些目标的关键在于通过采用技术,使这5个要素能够实现,而InfoCorp的目标是创建一个金融服务提供机制,使没有银行账户的人群享受到银行的服务。

To go beyond just a payment wallet, the unbanked must have the ability to manage their own assets. Unlike the assets associated with the more fortunate members of the population who can find jobs in the city and own real-estate, car, bank accounts, investments, the rural population are mainly made up of agricultural micro entrepreneurs and smallholder farmers whose only asset could be just a cow, for instance. Blockchain has the ability to provide asset tokenization which means that ownership of illiquid asset can be fractionalized and partially be traded for liquidity. In the case of financial inclusion, a poverty-stricken farmer’s cow can be tokenized[4] and partially sold through crowdsourcing platforms for the public to partake in the sharing of profit derived from the productivity of the cow.

不仅仅是支付钱包,无银行账户必须有能力管理自己的资产。 与能够在城市中找到工作,拥有房地产,汽车,银行账户,投资的人群拥有的资产不同,农村人口主要由农业微型企业家和小农户组成,其唯一的资产可能只是一头牛。 区块链有能力提供资产代币化,这意味着流动资产的流动性可以分散,部分被交易。 在普惠金融的情况下,贫困农民的牛可以被代币化[4],并通过众筹平台部分销售给公众,以分享从牛的生产力获得的利润。

However, this concept can only be fully achievable if livestock provenance for the unbanked can be created. The solution to this involves the ability to uniquely identify livestock, track the chain of custody, and potentially even the lineage of livestock origin through a Livestock Identification Certificate (LIC) managed via blockchain. There is an abundance of blockchain solutions aimed to address food supply chain provenance. But why would the unbanked use it? What incentivizes the livestock owners to provide accurate and traceable data at the last mile?

但是,如果想要实现这个概念,首先需要创建牲畜来源。 解决这个问题的方法涉及通过区块链管理的家畜识别证书(LIC)来唯一识别牲畜,跟踪监管链,甚至可能追溯到家畜的出生。 目前已存在大量针对食品供应链来源的区块链解决方案, 但是为什么没有银行账户的人群不能使用呢? 是什么激励了畜牧业主提供准确的可追溯数据在最后一公里?

The key to this is to embed the incentive for livestock identification within the livestock transaction itself. A Livestock Identification Token (LIT) can be created by utilising smart contracts to incentinize the creation of this data for monetization. LIC can be issued by the livestock owner and updated by subsequent owners as part of their blockchain transactions, for instance a payment-versus-delivery transaction to a meat processor. We call both the farmer and meat processor in these example, information producers.

这样做的关键是将家畜识别的激励纳入牲畜交易本身,可以通过使用智能合约创建家畜识别代币(LIT),从而激励建立此类数据进行营利。 LIC可以由牲畜所有者发行,并由随后的所有者更新,作为其区块链交易的一部分,例如与肉类加工商的付款交付交易。 在这些例子中,我们称农民和肉类加工者为信息生产者。

Overseas importer, large supermarkets, or restaurant chain where the quality and source of livestock origin are crucial parts of their food supply chain quality control process will require this information, which is currently not available in a verifiable state. We call them information consumers. Information consumer pay LIT to obtain the LIC. The LIC contains the history of livestock owners who have contributed data to the livestock ownership history. The LIT can be distributed to the information producers via the smart contract. There will be additional needs such as the use of physical identification devices that can be attached to the livestock and contain the LIC address to facilitate the transfer. For instance, physical devices could be mass-produced passive RFID tags that couple with NFC-enabled smartphones to allow livestock tracking via blockchain addresses. Although, the example above used cow as a reference but is purely symbolic. It can represent any form of livestock where farmers depend their livelihood on. However, cow as compared to other livestock such as goat or pig, has a higher chance of inculcating the value of long term assets to the unbanked. The concept of LIT can not only solve the problem of food supply chain provenance, but can solve the financial inclusion problem enabling livestock asset tokenization as well.

海外进口商,大型超级市场或餐饮连锁店,其品质和来源是食品供应链质量控制过程的重要组成部分,将需要这一信息,然而该信息尚无可验证。我们称之为信息消费者。信息消费者支付LIT获取LIC。 LIC包含为牲畜所有权历史贡献数据的牲畜业主的历史。 LIT可以通过智能合约分发给信息生产者。还将有其他需要,例如使用可附着在牲畜身上的物理识别装置,并容纳LIC地址以便于转移。例如,物理设备可以是批量生产的无源RFID标签,其与支持NFC的智能手机相结合,以通过区块链地址来进行牲畜跟踪。虽然上面是用牛作为例子,但这纯粹是象征性的。它可以代表农民依赖生计的任何形式的牲畜。然而,与其他家畜(如山羊或猪)相比,母牛的长期资产价值更高,更可能被纳入无银行账户人群的资产。 LIT的理念不仅可以解决食品供应链溯源问题,而且可以解决普惠金融问题通过畜牧资产代币化。

For financial inclusion to work, technology providers must have a sense of inclusiveness as well as willingness to accept and respect the use of different types of blockchain technologies. The mind set of adopting just “one type of blockchain” is neither practical nor realistic in an inclusive world. Therefore, our future goal is to work with partners to design solutions that can facilitate the inclusion of private blockchains to the public blockchain world, which we called Sentinel. It will be our future roadmap and can further open up the opportunities for non-blockchain based financial services to provide formal financial services to the huge unbanked market leveraging the economies of scale.

为了解决普惠金融问题,技术提供者必须具有包容性,以及愿意接受和尊重使用不同类型的区块链技术。 在这个包容性世界里,采用“一种区块链”的思想既不实际也不现实。 因此,我们的未来目标是与合作伙伴一起设计解决方案,以便于将私有链包含在公有链的世界中,我们称之为Sentinel。 这将是我们未来的路线图,并可以进一步提供完善的金融服务给更多无银行账户的人群,即使这些人并不了解区块链,实现规模效益。

[1] http://www.mckinsey.com/industries/financial-services/our-insights/counting-the-worlds-unbanked

[2]https://home.kpmg.com/xx/en/home/insights/2016/04/fintech-opening-the-door-to-the-unbanked-and-underbanked-in-southeast-asia.html

[3] MasterCard Advisors Analysis, 2014

[4] https://infocorp.io/cow-token-a-local-blockchain-use-case/

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