ModulTrade aims to use Blockchain to change Global Trade
ModulTrade launched their ModulTrade Platform (MTP) on 21 November, a Blockchain based global trade marketplace, as a way of fulfilling their mission to build and serve a fully functioning platform that will allow MSMEs (micro, small and medium enterprises) from anywhere in the world, to meet, commit and execute trade safely and securely.
Globally, there is an estimate 400mln MSMEs, with a staggering 56% of trade proposals submitted by such companies rejected by traditional institutions. Often when the cycle is complete, these small businesses face transaction charges of anything between 4-15%. There is also a lack of trust in the market, which adds to the many barriers MSMEs face when they want to trade between countries.
The ModulTrade team decided to take this problem on and provide a solution. A solution where a company, no matter their size, or location, could confidently, successfully and efficiently complete a full trade cycle. ModulTrade’s thoughts turned towards the nature of Blockchain technology and smart-contracts, and soon realised that the traditional bank processes could be replicated utilising this new digital technology, resulting in numerous benefits to the user and revolutionising the financial trade industry.
As innovators, ModulTrade rises above others by creating added value for not just the user, but third parties including trade-related service providers and trade software developers:
- Users: a pioneering model to trade with freedom, through trust, efficiency and with ease, allowing for global collaboration;
- Service providers: a digital marketplace to build on relationships and networks, between both trade services and trade participants, globally;
- Software developers: a platform to build on and make technological advancements, further benefiting the wider financial, technology and trade industries.
By sheer determination and continual trialling and testing, the ModulTrade team found themselves in a position where they could launch the beta version of the ModulTrade Platform (MTP) earlier than planned. The platform was not built overnight, however. Since the beginning of this year, the ModulTrade team of technology and systems experts have been busily working away developing, curating, testing, and laying down the system functionalities required to make the ModulTrade platform a success. The key objectives of the Blockchain based platform were identified early on, and include:
- A digital platform that is easy for users to navigate and operate.
- Minimise the costs to the user and time to trade.
- Expand the opportunities for MSME’s from local to global.
Through application of smart-contracts, the MTP legally and efficiently replaces conventional financial trade instruments, such as letters of credit and bank guarantees and it is the Blockchain technology that provides users a secure platform. The total offer is streamlined, with a simple digital end to end trade cycle, with transactions made in real time.
Alongside the development of the MTP, ModulTrade created their own cryptocurrency, the MTRc token. Architected on Ethereum (ETH), this new token allows users to buy and exchange within the system, in real time, and complies with the widely-accepted ERC-20 Ethereum token standard. MTRcwill also be compatible with all ether wallets and can be easily added to common crypto-exchanges.
One of the first versions of the ModulTrade prototype and bot was developed based on community group chat channel Telegram. This performs and follows transaction steps in a Telegram chat style window and will be used in the ModulTrade Value Eco-system as an assistant for small transactions, which can be executed quickly. It also allows users to instantly and easily check delivery progress and update on status of payments.
Now, every entrepreneur can place an offer to sell and/or buy a product on the MTP. In order to enhance the user experience, the MTP was designed as an open platform allowing to connect various types of value added services by 3rd party trade related services providers e.g. logistics services, tax consulting, quality inspection, etc.
This service integration plays two fold as a value addition and provides necessary security to the entire transaction. Opting for the logistics service allows to monitor the delivery in real time and submit tracking status to the smart-contract that releases the funds to the seller upon receipt of the goods.
To go live, ModulTrade team has integrated DHL, China Post, DeloviiLinii to provide logistics services. It’s expected to have multiple service providers at the later stage.
Through very simple steps, whether you’re a buyer, seller, or both, you can easily register and update your profile, add a shipping and pick-up address, and use ETH wallet with a ModulTrade account to make your secure and trusted transactions.
The ModulTrade teams’ application of smart-contracts means that the technology locks in funds right up until products are received, so you don’t have to worry about paying for goods before you see them. Other features of this global changing platform include uploading high-res images, to best market and promote products.
Crucially, one of the biggest achievements of the MTP is the very small transaction fee of only 1% to users. Compared to higher bank charges, the utilisation of Blockchain technology and smart-contracts to build the MTP has streamlined efficiencies within the business model, allowing this saving to be passed directly to the user.
The MTP takes the hassle out of user’s hands, with everything accessible in one place. It is the technology and systems developed that will run all checks, initiate transactions, monitor progress and store data, while the user is provided with timely notifications and updates along the way.
The financial trade industry needs to change and adapt to the growing nature of technological developments, as well as the demands of businesses eager to trade. ModulTrade have arrived at the right time, marrying a need for such change with new technologies, to create an innovative product. By leveraging the heart of Blockchain technology and drawing on its benefits to create an open Blockchain based trade finance platform for MSMEs, ModulTrade find themselves at the point of new promise and opportunity. Businesses and consumers alike can take this as the first step towards further change and a lesson in how Blockchain technology can be utilised to its maximum potential.
The future is an exciting prospect, with the likes of ModulTrade paving and leading the way towards a new technological world.
The ModulTrade token sale is open now. You can become part of the ModulTrade’s revolutionary change in global trade, by visitinghttps://en.modultrade.io/ to find out more.
The technological detail behind the MTP
The ModulTrade vision to revolutionise trade worldwide must be supported by a solid platform with innovative technology at its forefront. And it is the technology detail that has allowed the team to launch such a viable and functional product. The key instruments of this include:
The Blockchain part:
- Ethereum — an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality.
- Solidity — a contract-oriented programming language for writing smart contracts.
- Truffle — a tool for tests over smart-contracts.
- NodeJS — a modern backend language, which uses an event-driven, non-blocking I/O model that makes it lightweight and efficient.
- Express — a fast, unopinionated, minimalist web framework for Node.js.
- HTML, CSS — classic technologies to create a look and feel of the website.
As the team continue to develop the platform, plans are in place to explore other options such as Java, Scala or Python.
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.