[ICO Watch] Syncfab is using blockchain to decentralise hardware manufacturing
Syncfab is a recent ICO that aims to reduce costs and inefficiencies caused by intermediaries in the manufacturing industry. The blockchain was perhaps specifically made to solve problems like this, and Syncfab does so by using it to connect buyers directly with the manufacturers. The company has been in operation since 2013 and has made a platform that aggregates all orders and sends requests directly to manufacturers that match the buyer’s requirements on what they call a Smart Manufacturing Blockchain.
At first glance, there is a strong inherent benefit for using the Syncfab platform as it eliminates intermediaries and the Smart Contracts help streamline procurement processes by reducing labour-hours on miscommunications that lead to manufacturing mistakes or delays.
According to the Syncfab team, there are many problems caused by intermediaries in the current manufacturing process. As of today, intermediaries and large procurement firms control the access to many hardware manufacturing companies. Due to this monopoly, they increase prices, and despite this, they don’t provide any kind of Intellectual Property protection and making it difficult for small innovators and medium-sized business to easily source manufacturing.
All these roadblocks have resulted in 31% of buyers citing that finding the right manufacturing suppliers as being a problematic issue, 39% have experienced security breaches in the last 12 months, and Inefficient product procurement processes accounting for a yearly loss of $1.5 billion in revenue within North American businesses alone.
SyncFab’s solution and the MFG token
SyncFab claims to be the first peer-to-peer Industrial Internet of Things (IIoT) manufacturing blockchain for the hardware manufacturing supply chain.
Here’s how Syncfab works,
- Manufacturers list their machining capabilities straight to their platform and hardware buyers can send part orders directly to them.
- The smart contracts guarantee production standards, as well as provide much needed Intellectual Property protection and guarantee payments.
- All transactions within the Syncfab blockchain ecosystem will be powered by the MFG token.
The MFG Token is a utility token used to reward purchasers and manufacturers, make payments, protect intellectual properties and will manage the execution of smart contracts on the blockchain.
Token sale details
Syncfab is running a public token sale which started on 15th of Feb and will run for another 14 days. Some key metrics of the token sale is as follows –
- Soft Cap: $15M USD (15K ETH)
- Hard Cap: $30M USD (33K ETH)
- Total Supply: 1,000,000,000 MFG
The company has already raised 14.5k ETH which is just shy of their soft cap of 15k ETH.
Market and Team
It doesn’t take a very educated guess to arrive at the fact that the supply chain side of electronics is a huge market. Some stats shared by the Syncfab team reveals just that. Some key facts are as follows –
- In 2014 exported goods within the United States were estimated at $1.4 trillion, and there is a worldwide expected growth of $15 trillion by 2030.
- Additionally, companies within the United States are investing heavily in IIoT technologies, with spending estimated to be around $20 billion in 2012 and an approximate projection of $500 billion by 2020.
- These investments are expected to yield a return on investment to the global GDP as high as $10-$15 trillion by 2030.
- For every dollar spent on manufacturing within the United States alone, $1.81 is expected to be added to the economy.
Clearly, this is a huge market with a lot of potential for growth but would need a strong and experienced team to achieve this. Syncfab has just that. CEO Jeremy Goodwin is a manufacturing and supply chain veteran, who has served as EVP and CFO of China Advanced Construction Materials Company leading it to peak performance of 2,000 employees and NASDAQ IPO. He is complemented by Andy Tong, who serves as chief strategy officer. He is a successful entrepreneur known for founding the top online game portal MMOABC which garnered millions of monthly visitors from North America with zero spent on advertising.
If you thought IoT is a big deal, it’s industry counterpart, the Industrial Internet of Things (IIoT) will be at least ten times more important. The volumes and use cases for running IIoT applications are aplenty and Syncfab provides an interesting use case here.
Things that seem to be working for Syncfab is as follows –
- A working beta – Always a good sign during an ICO phase
- A real problem in a huge market – The numbers are there for all to see
- A stellar leadership team – These two are also strongly supplemented with able partners within the industry as well as for outreach
- Members in the USA can also participate in this ICO – This kind of legitimizes the ICO in a way.
Again, this is not investment advice, but if you’re in the market looking for a strong ICO, taken another look Syncfab.
Visit Syncfab’s product site – https://syncfab.com/
Visit Syncfab’s token sale site – https://blockchain.syncfab.com/