KRATOS’ Inspiration That Evolved Around a Simple Concept of ‘Trust’
The not-so-recent controversy around Facebook and data leakage brought up the question of trust. Trust, defined as’ confident expectation of something’ is the most valuable business commodity.
A consignment of physical commodities worth millions of dollars transverses global borders and numerous intermediaries before it reaches the final owner. And, it’s very much driven by trust among all partners involved
In reality, its wishful to think the commodity trading process is that simple! Documentation fraud like fake Bills of Lading, tampered quality certificates are affecting speed and efficiency among the trade partners. Alternative measures like third party verification agencies can sometimes add up to 5% to the cost of the trade. In an industry where margins are small, these additional costs make trades unfavorable especially for small to medium sized traders.
So, things had to change!
Srinivas Koneru has 35 years of experience in the commodities trading industry. He is a serial entrepreneur with a Midas touch, having turned around four sick companies around. Two years back, he decided to change the commodity trading process and bring trust and transparency to every step of the supply chain. He was looking for a solution that could solve this challenge for one of his holding group’s company and evaluated various solutions available in the market but to his disappointment.
Instead of waiting for someone else to solve his problem, he decided to take the matters in his own hands and develop a solution for the entire ecosystem. Thus, came into picture Arkratos Blockchain Solution.
But, Why Blockchain?
This brainchild of pseudonym Satoshi Nakamoto is a continuously growing list of records, called blocks, which are linked and secured using cryptography. By design, a blockchain is inherently resistant to modification of the data. This solves the most important challenge of documentation tampering and fraud bringing back trust to the trade.
Singapore- based Arkratos team has spent last six months developing KRATOS — a blockchain based platform. Adding to the blockchain benefits, the platform converts paper contracts to digital contracts and then digital to smart contracts that self- execute when pre-determined conditions are met. This removes the need for manual documentation, thus speeding up the release of financing from banks and eliminating challenges like delay in clearances at ports and at various regulatory authorities.
The Game changer — KRATOS
Currently, there are hundreds of ERP systems available in the market which cater only to one specific leg of the trade. KRATOS takes care of the end-to-end trade as it’s available for the entire ecosystem. Because of its modular architecture, users can decide to use it for a specific part of the trade or the entire trade.
Srinivas says, “Apart from removing the trade glitches, KRATOS will help SMEs find new businesses. It will bring together several service providers like producers, traders, financiers, insurers, shipping and logistic companies. Since, everyone in the platform can see the previous trade logs, it will help a service provider build their credibility and attract potential business”
The journey that began with the search of a solution resulted in creation of ‘The One’.
