Sentinel Chain’s CEO 1st Live AMA with OhHeyMatty

Part 2

Darryl Lo
Darryl Lo
Feb 18, 2018 · 5 min read

For our readers who found Part 1 fascinating, we bring you Part 2 of the AMA! OhHeyMatty goes into a deeper discussion about the Sentinel Chain platform, profitability and challenges.

Sentinel Chain’s CEO Roy Lai first AMA with OhHeyMatty. Source:

About the Sentinel Chain Platform

OhHeyMatty: Can you share with us more regarding the platform?

Sentinel Chain CEO Roy Lai: There are essentially 3 blockchains involved in the entire solution. Firstly, we have the Ethereum blockchain, it provides access into sentinel chain via the public SENC token. Sentinel Chain itself is a consortium blockchain, its main function is to bridge the various financial service providers that are on the SENC network as well as the local blockchain in the different countries. The final blockchain we are talking about is the local crosspay blockchain. This blockchain is isolated in each of the country we are targeting and they are all private blockchains built on a private platform.

Size and reach of Sentinel Chain Platform

OhHeyMatty: At this stage because of your partnerships and scalability, do you think you are bigger than Wabi? Wabi is a big name in the RFID blockchain space currently but they deal in only maternity products for baby formula but you are tackling a different market which is for livestock but it seems that you already have the infrastructure set up. Would you feel that that’s a fair comparison?

Roy Lai: No. I think it’s difficult to compare because the problem that we are solving belongs to a very narrow spectrum. I have received requests on how we can extend this to other agricultural product protection, but there are pretty nitty-gritty differences that we have built into the system to cater to specific groups of people — as of now livestock farmers. This is very different from a generic tracking/provenance solution. Ours is pretty niche and specific to addressing this one problem at least for now.

Anti-Fraud Mechanism

OhHeyMatty: Is there a mechanism for anti-fraud for example a mechanism that detects when the tracker is removed?

Roy Lai: The question is why would you want to detect whether the tracker is removed? This is no difference from having a car. When you buy the insurance or when you get a car loan, as long as you continue to pay for the loans, whether your car is damaged or under servicing, it should not be part of the problem. Secondly, if there is a problem with the tag, the livestock owners will be the ones to suffer the most. Because as I mentioned before, they depend a lot on trust to maintain this society and this is one way of getting themselves into trouble whereby they will no longer be able to make use of our system to get access to easy loans or a new form or financing. Third is that they have insurance for their livestock, so in the event that if their livestock dies, they can still make a livestock claim from the insurance companies.

On Profitability

Cattle count in Myanmar, source:

OhHeyMatty: What is the current market size and ROI?

Roy Lai: Just by looking at the cattle perspective, Myanmar alone has around 15 million cattle. Bangladesh has around 17 million cattle. If you look at the amount of loans a farmer can take by using these cattle, the loan amount usually doesn’t last more than 6 months. These are all very short-term loans. Let’s just say each loan is around 500 US dollars on average. If you multiply that with the population size of the cattle, which is essentially your assets and you combine that with the amount you are borrowing. That is basically the amount of portfolio size we are talking about. The amount of interest rate charged by loan companies currently is around 30%. I’m not speculating the rates. These numbers are given to me by insurance companies that we have partnered. If we just take 5% on the interest rates, by calculation on cows alone, this is the possible loan size we are talking about just based on collateralizing livestock.

Differences between Sentinel Chain and Telcoin

OhHeyMatty: How do you differentiate yourself with Telcoin?

Roy Lai: As you have read from our whitepaper, Sentinel Chain Token has 6 different functionalities. 2 of them are to be used as network access tokens for insurance companies and the loan companies to publish their policies on the blockchain itself. That alone is something different from Telcoin. The other 2 functionalities are that one of them is being used as a collateral by the local lending side of the vendor so that they could use SENC as collateral to borrow from the overseas lender. The other purpose for SENC is that it could be used by overseas lending parties to lend to the local lending parties for them to be converted into LCT. We are trying to solve a financial inclusion problem here but its’s too big a problem to be solved. We use SENC as a mechanism for sponsoring social programs organized by NGOs, referring them to develop the necessary infrastructure so that they can bring up the level of financial inclusion to the unbanked. Finally, SENC is to be used as a local payment mechanism. All of these functionalities of Sentinel Chain make us very unique as compared to a lot of other generic solutions out there.

On the Biggest Challenge for Sentinel Chain

OhHeyMatty: What is the biggest challenge you face currently in terms of becoming a successful project or company?

Roy Lai: The biggest problem that we face right now is time. Based on our current roadmap and the amount that we are raising, it’s actually designed for us to focus on one country at a time and to test the market for us to make sure that the business plan is successful before we start scaling out to multiple countries, so we need to do this as quickly as possible but at the same time there are a lot of opportunities that’s coming on board, some are competing with the attention for those markets. Therefore, time is the biggest challenge for us.

Closing Word

Speaking of “time”, the AMA drew to an end as night turned into day. We hope you’ve enjoyed reading the text-only version of the AMA with OhHeyMatty. For our supporters who still prefer the audio-visual version, you can find the full video above.

If you have any questions, please don’t hesitate to join our Telegram community for 24/7 live chat support.

Sentinel Chain

The Blockchain for Global Financial Inclusion

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