ShipChain ICO Review – The blockchain ready to disrupt the $8.1 trillion USD logistics industry
Disclaimer: This is a sponsored post and therefore our opinions have been kept out of the following article and video. As such, this article will take a different form to our regular articles.
This article is not financial advice. Please always do your own research, especially with sponsored content.
YOU WILL LEARN:
What Is ShipChain?
How Does ShipChain Work?
Who’s Behind The ShipChain Project?
What’s The Purpose Of ShipChain Tokens?
- What Is ShipChain?
- How Does ShipChain Work?
- Are ShipChain Solving Real Market Problems?
- What Is The ShipChain Token Used For?
- Team & Roadmap
- Selling Points
- ShipChain Token Sale Details
- Follow Future Posts
1. WHAT IS SHIPCHAIN?
In Their Words
“ShipChain was founded with the mission to create a unified, end-to-end technology platform that will revolutionize the logistics and transportation industry using blockchain technology.”
In Our Words
Shipchain are building a platform which will increase visibility, increase efficiency and reduce common errors seen in the supply chains of companies.
They will do this by utilising the Ethereum blockchain to track shipments from start to finish.
2. HOW DOES SHIPCHAIN WORK?
Regarding how Shipchain works, we would that recommend viewers read Shipchain’s whitepaper to further understand the details of the project.
However, we will briefly be describing the two aspects of the project which stand out most to us:
- Shipment Tracking
- Decentralised Brokerage System
When a shipment order is placed, a smart contract is created on the Ethereum network. This contract will include extensive details about the shipment.
Due to the immutability (cannot be edited) nature of the blockchain, it provides an ideal location to store such information as details about the shipment cannot be altered for fraudulent purposes.
Waypoints – i.e. stopping locations – will be recorded and checked by the smart contract. If all of these are recorded correctly, the smart contract will be completed and the process will be finished.
According to their whitepaper, Shipchain stipulate that if there is a dispute, the smart contract will automatically be able to resolve it as it will be able to ‘specify its own terms for how disputes are resolved’.
All users involved in the supply chain will be able to pull data from the ShipChain tracking system and post it to their own systems and websites.
As such, Shipchain can be used to create a single, unified tracking system.
Decentralised Brokerage System
Shipchain will also provide an open marketplace connecting potential companies with freight carriers.
On top of this, they will also the ‘Shipchain Web Platform’ which will be a centralised system for booking and managing freight shipments and other modes of transportation.
Shipchain give their example of a company attempting to transport containers full of shoes from China to the United States:
In this scenario, the Shipchain system will recognise a sea carrier, rail carrier and truck carrier are needed for the journey and the ideal options will be selected based on cost, speed and size of shipment.
As the company will be able to see exactly where and when portions of the delivery are occurring along with who is carrying the cargo, they should have greatly increased visibility across their entire supply chain.
Regulatory compliance may require ShipChain to be licensed in freight brokerage, freight forwarding and have an internal customs brokerage – a point highlighted by Shipchain themselves.
Therefore, while companies will book their own routes, ShipChain may need to be the official booking agent for compliance purposes.
3. ARE SHIPCHAIN SOLVING REAL MARKET PROBLEMS?
#1 Problem – Poor Tracking & Lack of Transparency
Regularity and reliability of shipping status updates is perceived by users to be the primary factor when deciding quality of a shipping service yet tracking across multiple carriers can be fragmented and hard to connect.
Failures of transparency are often down to bad data handling practices and sometimes parties are even incentivized to provide inaccurate data. This means brokers either can’t or won’t tell a shipper exactly what carrier and driver are carrying their freight.
The ShipChain sidechains will track individually encrypted geographic waypoints across each smart contract, this will mean all parties involved in the deal will have instant access to accurate data surrounding the shipment.
#2 Problem – Middleman Markups
Brokers act as the middlemen to the industry; typically charging a premium of between 30-50% for their services.
The ShipChain blockchain will eliminate the need for brokers; carriers will be able to use the platform to find and book their own shipments.
This will remove the broker’s fee making shipments cheaper for the sender, while also increasing the carrier’s returns.
#3 Problem – No Accountability
It is estimated that cargo theft causes an annual loss of around $30 billion USD because uncertainty often surrounds where the cargo is at any given time and as a result, who is responsible for it.
ShipChain claim that the geographical data mentioned above should increase visibility and decrease theft as a result.
ShipChain will also use barcodes and hardware RFID integration to ensure assets can be automatically verified each time an electronic log is reported.
This will give a clear idea of who received what and when they received it, meaning any discrepancies in the cargo are identifiable as well as the person who is at fault.
4. WHAT IS THE SHIPCHAIN TOKEN USED FOR?
In order to gain access to the platform, users must first purchase 1 SHIP Token. With a total supply of 500 Million, this may not drive demand of tokens sufficiently.
Therefore, the ShipChain team have described to us how their token will have future utility through potential rewards for token holders.
However, due to compliance laws, they cannot describe what this utility or these rewards will be.
5. THE SHIPCHAIN TEAM & ROADMAP
The ShipChain Team
As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”; you could have the greatest idea in the world but without proper execution, it will not matter.
A team of 12 with 16 listed advisors, there are some impressive figures in charge of this ‘SHIP’; CEO John Monarch has significant experience in the logistics industry as the founder of Direct Outbound, one of the fastest growing fulfilment companies in the USA.
Chief Marketing Officer Brian D. Evans was ranked as the 4th most influential business journalist in the world and Chief Strategy Officer Roger Crook is the former CEO of DHL Global Forwarding.
The ShipChain Roadmap
Below, we have copied in the ShipChain roadmap for readers to view for themselves:
- Q1 2018 – Token Generation Event main-sale January The SHIP Token is omnipresent across popular, high-volume exchanges. Our freight-tracking pilot program with Perdue Farms rolls out.
- Q2 2018 – The initial Track & Trace platform is integrated with government-mandated ELD devices.
- Q3 2018 – Testing of ShipChain’s Web Platform begins. App development on ShipChain’s open ecosystem is promoted to partners.
- Q4 2018 – Track & Trace platform allows carriers to develop their own sidechains. The first version of the ShipChain Web platform is released. Our pilot program is extended into integrated supply-chain testing.
- Q1/2 2019 – Development of custom sidechains for large carriers on the Track & Trace platform begins. The ShipChain Web platform is integrated with external data sources and additional carriers.
- Q3 2019 – A small carrier is acquired for internal testing to accelerate the adoption and development of our Track & Trace platform. International partnerships are developed to focus on expansion into global sea freight.
- Q4 2019 – Relationships are established with government regulators to cement ShipChain as the favored tracking technology vendor, and enhance ELD compliance. Air and sea freight pilot programs are initiated.
- Q1 2020 – Community open source projects are sponsored to accelerate app development on the ShipChain blockchain. Extensive custom sidechain research is concluded for 3PLs and large shippers with internal fleets.
6. SELLING POINTS
ShipChain are presenting a disruptive business proposal to the well established logistics market; worth $8.1 trillion in 2015 and forecast to almost double by 2023.
There is a clear demand for shipping services and if ShipChain are able to produce and successfully implement a platform that improves on the current system, then there is no reason to think they won’t see high levels of quick adoption.
ShipChain are able to present a number of well established partners alongside their proposal; Perdue Farms, a major poultry processing company have already committed to a pilot project with ShipChain to implement blockchain technology throughout their supply chain.
With annual sales of over $6 billion USD, it can only be a good sign that such a large company are already on board even at such an early stage.
Blockchain As An Advantage
The inherent nature of the blockchain – high visibility and immutable nature – makes it the perfect tool for supply chains.
In fact, we suspect that the blockchain will have a greater effect on the current supply chains of existing companies than it will on any other sector of their businesses.
7. SHIPCHAIN TOKEN SALE DETAILS
The first thing to highlight is that there are 3 sections of the Token Sale:
- Sale 1
- Sale 2
Pre-Sale has already occurred
Sale 1 is the current upcoming sale and therefore these details will be given below
Sale 2 is a future sale which is expected to occur a couple of years further down the road
Token Sale Details
- Token Sale Link – https://ShipChain.io/
- Referral/Affiliate Code – N/A
- Start Date – Mid-January
- End Date – Not Provided
- Token Price – We were unable to locate this online. However, ShipChain’s whitepaper states that they will be selling 29.17 Million Ship Tokens and raising $10 Million USD in Ether. At current Ether prices ($1,156), this would equate to 3,372 SHIP per ETH. Please bear in mind that this is our own calculation based on prices and not an official figure.
- Bonuses Available – Mentioned but not specified
- Token Supply – 500 million SHIP (29.17 Million available during this sale period)
- Soft Cap – N/A
- Hard Cap – 29.17 million SHIP (This Stage) – Approximately $10 Million
- Accepted Currencies – ETH
- How to Participate – Currently, there is little information about how to participate. However, if you follow this link to ShipChain’s homepage and bookmark it, you will soon see updates and instructions
8. THE CRYPTOGURUS CONCLUSION
9. FOLLOW FUTURE POSTS
Come join us to follow future articles and personally chat with us: