By democratizing global trade with Blockchain technology, our solution allows small enterprises to participate in trade worldwide
The opportunities for micro, small and medium enterprises (MSME) in the global marketplace and value chains are enormous, along with exposure to a large customer/buyer base and a worldwide presence. Yet, an estimated 400 million MSMEs are excluded from global trade due to many barriers and capacity constraints owing to their small size. With a goal to revolutionize trade finance, four colleagues at MIT began a project in 2016, which lead to the establishment of ModulTrade. “By democratizing global trade with Blockchain, our solution allows MSMEs to participate in trade worldwide,” states Evgeny Kaplin, Co-founder and CEO of ModulTrade. The company offers end-to-end services for the entire business-to-business cycle.
One of the main challenges for trade is the “question of trust at an affordable cost” between the parties engaged. “ModulTrade’s smart-contract platform (MTP) replicates financial trade instruments, such as letters of credit and bank guarantees, to offer participants a trustworthy and cost-effective service,” states Jean Chaanine, co-founder and COO of ModulTrade. Once a buyer and seller create a smart contract with MTP, the goods are transported with a tracking number and funds are delivered upon successful delivery.
An estimated 56 percent of trade finance proposals from MSMEs are rejected in contrast to 7 percent for large enterprises. High entry costs and poor customer experience involving complicated manual processes, long wait times with low transparency, and a relatively high residual settlement uncertainty has deterred MSMEs from participating in global trade. MTP provides the same functionality to MSMEs at a negligible price as compared to the 4–15 percent transaction cost charged by banks.
ModulTrade Crypto token (MTRc), an offering of ModulTrade, is an efficient instrument of value exchange, along with fiat currency and other crypto currencies like Bitcoin and Ethereum. Furthermore, “MTP will include access to third-party services like logistics, trade financing, insurance, customs brokerage, and tax issuing,” states Karthikeyan Kaliyaperumal, Co-Founder & CTO of ModulTrade.
He adds “the underlying Ethereum platform will enable us to open our marketplace/ ecosystem with reduced cost”. The use of Blockchain technology brings security and reliability to the MTP platform, for all parties involved in the trade. ModulTrade’s user interface was selected from the results of a designer challenge held between ten competitors on Topcoder, a company that administers contests in programming.
ModulTrade’s multicultural and multidisciplinary team is working from the two sides of the Ocean to build a value ecosystem (MVE) which is a digital network structure that is real-time, global, connected, digital, and cost-effective, with features to support fintech solutions developed by third parties. This will enable MSMEs to increase revenue and reduce costs of global trading while subsequently allowing third-party developers and service providers to target a wider client base. The priority of MVE is to reach a critical mass of users to enable self-maintained growth for maximum profits. “We decided to conduct a token sale to attract participants and early adopters and establish MTRc for use within MVE,” explains Kaplin.
“Trading is becoming more complex, it is not limited to buyers and sellers, but it is an ecosystem where various parties contribute to the process,” states Chaanine. While the MTP has simple features like “meet, commit, and execute processes,” ModulTrade plans to launch its full range of features soon, where users will receive end-to-end services to execute trade easily and efficiently. The company plans to provide cross-border trade capabilities in the UK, Italy, and Germany in the near future, and also expand in Asia and the U.S.
ModulTrade expands and makes the “World of Trade” smaller
Democratization of trade is coming, fast to certain markets. Companies are waking up to the benefits of equality, transparency and trust in business delivered through the ModulTrade platform. And in 2018 users in from China, Russia, Germany, UK, France, Argentina, Mexico, Brazil, USA, India, Vietnam, Italy, Slovakia, Spain, and Cyprus, will be able to use the system in their native language.
The Modultrade team have invested heavily in making the platform interface user friendly and flexible to the customer’s needs. The initial challenge was translating cross-border trade flows and process to mobile devices, the small screen and making it work at scale. The second challenge has been to make the application native to the user, allowing them to be understood in their local language yet trade globally without comprise. Everyday, as the network grows the team act to translate the platform to the local market and in turn are making the world of trade a smaller place, in which to connect, transact and grow.
The focus for the ModulTrade team in 2018 is in reaching out to new territories, with particular attention being on supporting the trade flows between Europe and Asia. Initially the team are working to ensure that the platform can support all cryptocurrency trade flows between the regions. Thereafter, the focus will extend on out into the construction industry and from there, moving quickly onwards and outwards into other sectors. Always with the message of trade transparency and flexibility. By the end of 2018 the intention is to make the platform truly global, set up for expansion across all sectors.
So as the Sun nearly sets on the year 2017, small and medium sized businesses can be sure that it will rise soon in their region, spreading opportunity and empowerment.
ModulTrade joins One Belt One Road
In light of the “One Belt One Road” initiative of Chinese People’s Republic that is expected to bridge the ‘infrastructure gap’ to accelerate economic growth across the Asia Pacific area and Central and Eastern Europe, it’s extremely important to develop the regions into a cohesive economic area through building infrastructure, increasing cultural exchanges, and broadening trade routes. Anticipated cumulative investment over an indefinite time scale is estimated at US$4 trillion or US$8 trillion.
As far as economic ties and trade expansion go, the lion share is devoted to small and medium enterprises who are undeniably the backbone of the economic growth in the world.
In support of bridging said infrastructure gap, ModulTrade have found themselves in a unique position by providing a means of developing the economic growth in China, as the company has a great focus supporting the abundant Chinese small and medium enterprises who are seeking global opportunities to expand and explore the untapped potential of cross border trade.
But how is this pioneering company doing this? ModulTrade has created a new digital trade hub, the ModulTrade Platform (MTP), built on blockchain technology and applying smart-contracts to replicate the traditional trade processes such as letters of credit and bank guarantees, but at a much lesser cost to the user and with increased trust between the buyer and seller.
The MTP serves users with easy to use tools to successfully complete a trade cycle between countries. In addition to the existing functionalities, ModulTrade has taken steps to further make the MTP catered to small and medium enterprises specifically in China, by developing the webpage and product interface in the Chinese language and integrating China Post and S.F. Express as a 3rd party service provider for delivery of the goods.
With its global ambition, ModulTrade has impacted the entire eCommerce industry as it has supported the first batch of goods sold from China on the blockchain via the MTP in early December, with payment made entirely in cryptocurrency (ETH). As stipulated in the smart-contract by the transaction counterparties, the goods were prepared for dispatch and securely shipped cross-border by local delivery company China Post, and delivered to the buyer by Russian post in Moscow, Russia.
The carrier carefully inspected and packed the goods for the shipment. The buyer received the parcel at their doorstep in a weeks’ time and was absolutely satisfied with the quality of the goods, the delivery service and the ease of executing the trade on the MTP. Right after the parcel receipt, the correspondent amount in ETH automatically transferred via the smart-contract and hit the wallet of Chinese seller immediately. As a result of executing trade on the MTP, both parties saved considerable time and a significant amount of money.
As one of the core ambitions of ModulTrade is to allow micro, small and medium enterprises to trade with ease from anywhere in the world, coupled with the success of the first trade from China on the blockchain, we can proudly declare that our platform connects the continents and addresses the needs for global trade participation. And we’re more than happy to welcome all businesses and enterprises to join us in this revolutionary journey of changing the Trade Finance industry for the better.
ModulTrade has now officially LAUNCHED its global digital trade platform (MTP)
From today, every business operator, no matter their company size, location or service, can meet, commit and execute trade on our fully functioning blockchain based platform. 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.
Our application of smart-contracts means funds are locked right up until products are received, so you don’t have to worry about paying for goods before you see them. We integrated DHL (other logistic companies will be added soon) so you can track the progress of your delivery in real-time, on the MTP.
If you want to sell a product, all you need to do is follow these simple steps to trade with freedom:
- Create your proposal to sell your product
- Select your method and terms of payment
- Select your delivery terms and logistics company
- Publish your proposal?—?a link will be created which you can share on other channels. Upload high-res images to best market your product.
- Receive confirmation from MTP when the buyer has sent funds to a smart-contract
- Ship your product and send tracking number to smart-contract?—?use our integrated DHL service to track progress in real time
- Receive payment?—?as soon as the product is delivered, funds will be automatically released to your wallet
And, if you’re a trusted buyer…
- Select a proposal you want to buy
- Confirm your details to ignite the smart-contract
- Confirm the trade by sending money to the address of the smart-contract (seller will ship your product once they are notified that funds are on the smart-contract)
- Track the delivery of your product in real-time
- Receive your goods
- The payable amount is automatically transferred to the seller.
To allow entrepreneurs to test the ModulTrade Platform, some MTRc has been released for free float in the system. Users may buy and sell MTRc at a nominal price of 1ETH = 700MTRc at the exchange, Etherdelta.com.
Soon, the ModulTrade platform will buy MTRc at a nominal rate for fiat from merchants. Currently, both sellers and buyers may choose between MTRc or ETH payment token, with plans to soon accept other ERC20 tokens, along with fiat (USD, EU, £ etc.).
A unique one-stop digital hub, the ModulTrade platform will change the way you trade, open networks across the globe, and provide a platform which will ultimately save you time and money. So, join us now and be a part of democratizing global trade by visiting the ModulTrade platform today to buy and sell goods with MTRc and ETH. What are you waiting for? The ModulTrade Team. Enjoy the freedom to trade!
By : Ashadiya_