Win A Crypto Million

Lithuania European Capital of Financial Innovation

“Win a Crypto Million” is an advertisement campaign by a shopping center in Lithuanian. While one of the most popular basketball clubs administrations will be on the Blockchain Technology. Also in Vilnius was opened a blockchain center which is a third in the world and first in Europe. There is also a rumor that at the Republic Of Artist in Vilnius will introduce their own cryptocurrency.

Lithuania is becoming a leader in the crypto scene. Today in Vilnius it is already possible to pay for dinner, computer repair or even clothes from Lookbook and Capsule fashion and style stores with digital money.

"Lookbook a fashion & style service store in Vilnius is now accepting 10 different cryptocurrencies using CopPay’s platform. A great addition to the store allowing their customers to pay in new and innovative ways"

The majority of the business owners use CopPay’s platform to allow their restaurants, hotels and shops to accept cryptocurrencies. Such platforms form a bridge between real life and blockchain technology. They allow merchants to become a part of the global crypto-economy in just 15 minutes. While not having to be afraid of jumps in Bitcoin courses and getting all the advantages of being the first on the local cryptomap. For the consumer, such businesses are progressive, advanced and open-minded.

On one hand, using such ways Lithuania is trying to become a leader in the crypto sphere, on the other hand, there are plenty of banks and politicians, who claim that cryptocurrencies will never be successful and that crypto is dangerous. The bankers claim that with the help of crypto criminals are able to launder money. This way the financial institutions are trying to deny an open truth that today’s current financial systems are laundering money! However, blockchain technology, that is based on decentralised, open, digital and transparent ledger that doesn’t allow to hide any, even dirty transactions. Furthermore to falsify it is nearly impossible. It would require minimum 51% all network agreement.

In the world, you have to agree, it is very hard to create something totally new from the start. However, there are always does that try to do so and succeed! We could say that Swiss almost for 100 year are doing it with their virtual WIR currency. Everyone saw their success, but no one tried to repeat it. Even though the whole world knows who are the Swiss and their banks.

WIR for those who do not know is an independent complementary currency system in Switzerland that serves businesses in hospitality, construction, manufacturing, retail and professional services. WIR issues and manages a private currency, called the WIR Franc, which is used in combination with the Swiss Franc to generate dual-currency transactions.

The WIR Franc is an electronic currency reflected in clients’ trade accounts and so there is no paper money. The intentions of starting were in increased sales, cash flow and profits for a qualified participant. The credit lines are secured by members pledging assets which ensures that the currency is asset-backed. When two members enter into a transaction with both Swiss Francs and WIR Francs it reduces the amount of cash needed by the buyer; the seller does not discount its product or service.

It is also strange that when cryptocurrencies are discussed almost no one is mentioning WIR experience. WIR is a first virtual currency.

It was founded in 1934 by businessmen Werner Zimmermann and Paul Enz as a result of currency shortages and global financial instability. A banking license was granted in 1936. “WIR” is both an abbreviation of Wirtschaftsring and the word for “we” in German, reminding participants that the economic circle is also a community. According to the cooperative’s statutes, “Its purpose is to encourage participating members to put their buying power at each other’s disposal and keep it circulating within their ranks, thereby providing members with additional sales volume.”

Although WIR started with only sixteen members, today it has grown to include 62,000. Total assets are approximately 3.0 billion CHF, annual sales in the range of 6.5 billion, as of 2005. The WIR Bank was a not-for-profit entity, although that status changed during the Bank’s expansion. The bank considers themselves as stable, claiming being fully operational during times of general economic crisis and may dampen downturns in the business cycle, helping to stabilise the Swiss economy during difficult times. It is cited as an example in the documentary film Demain (Tomorrow).

The current day cryptocurrency creators take the step even further th`n the founders of WIR by fully decentralising the system. However, WIR is a perfect example of how a system integrated correctly can solve actual issues that work for almost a 100 years.

It is paramount to understand that cryptocurrencies are only one of many solutions that blockchain offers and narrow at that. However, it is time to check how blockchain could be used in other aspects.

There are problems and there are solutions. As it is said In Every Crisis Lies The Seed of Opportunity, and in every problem there is a diamond waiting to be found. Governments usually face a lot of problems. Some problems are easy to solve and some require time knowledge and innovation. One of these diamonds that could be found these days are Blockchain and how it could be used in the Supply Chain Management at the government level, at the corporate level and at the franchisee level.

Crypto Nation

Innovation is something exciting once it is understood. Take for example Blockchain technology. Majority of Governments are afraid because their members do not have enough time to understand in detail the technology because of the huge amount of daily issues. With lack of time to get to know a new technology and to understand the potential — fear seeps in. Therefore it is natural that majority thinks that Bitcoin could ruin the power of money if implemented. But this is just a side effect of the technology. However, if implemented correctly just like WIR it could bring huge benefits. If we look deeper past the cryptocurrencies, the technology is simply marvelous and has many possible adaptations.

Let’s take the case of Brazil. Simonas Radkevicius have lived and worked there for few years. The company Simonas worked at has created an accounting system that has served Brazilian Government.

The government had a goal to control and ensure transparency in the whole supply chain. The main reason the government decided to do it because there are too many places in the supply chain to hide taxes and engage in illegal business like contraband. Starting at the point of sale and moving all the way down the chain and touching all the nodes. Transportation, buying raw materials, warehousing and etc. This is a major issue for a country. If taxes are hidden the country cannot tax them if they cannot tax then the countries growth and well being is stalled. The better country is off the better life the citizens have.

Everyone sees who and with whom goes, everything is visible

Such transparent control system has only few advanced nations, others are getting by since part of the people in the government receives benefits to close their eyes to such events. To defeat people greed is a monstrous job. There has to be special circumstances in place that elected lawmakers have a higher dose of altruism than greed.
Now, what would be the best way the government could mitigate such problem? What about transparency at the whole supply chain line sounds like? Including outsourced companies, subcontractors and vertical and horizontal chain links. Wouldn’t this be great? You could see what was bought, sold, documents issued, when the products were accepted the state they were issued, the state they have arrived. Furthermore, from whom to whom. This way it would be impossible to make the products disappear, fake sales numbers and etc. Since everything would be registered and kept in one decentralised place were changes to the past events are impossible to make.

Illustration from D.Radkevicius book “God, Quantum Physics, Organisational Structure and Management Style”

All this could be achieved with the help of Blockchain. It allows governments to overcome such problems with ease as long as the solution is understood and the ways to implement and adapt are done.

So what is Blockchain? In simple words it is a ledger where all the action is registered and kept. Without the possibility to alter or change or falsify. The ledger records transactions in a series of blocks. It exists in multiple copies spread over multiple computers, which are also called nodes. The ledger is secure because each new block of transactions is linked back to previous blocks in a way that makes tampering practically impossible. As it is decentralised, it does not depend on any single entity (like a bank) for safekeeping. The nodes connected to the blockchain network get updated versions of the ledger as new transactions are made. The multiple copies of the ledger are the “truth” about every transaction made so far in the blockchain.

Trying to falsify the ledger would mean having to falsify the copies at precisely the same moment. The chances of being able to do this in blockchain networks of any useful size are negligible.

Illustration from D.Radkevicius book “God, Quantum Physics, Organisational Structure and Management Style”

„Blockchain“ is like a grand symphonic orchestra, where every single player plays from the notes and every single deviation from the correct note is heard by all. The drummer cannot beat faster then it is required by the notes. At this point the government could take place as a conductor.

CryptoCompany

For 15 years Darius have worked helping to clear up supply chain for wholesale and retail. In some countries like Russia, Ukraine it is a norm to give money under the table for the purchase agent so he would buy more then the company really needs.
A similar problem can be found at the franchise level. Franchise receiver, anything from restaurant network to stores have to uphold quality standards when acquiring products. However, when they are trying to “save” they start to buy products with worst quality or even fake ones. And it can be anything from meat, sauce, cigarettes, brand clothes to electronics. There are analysis showing that around 30% of all world electronics are fake and in the fashion industry only 30% are originals. Branded and quality products always will cost more than their counterparts.
Manufacturer or franchisor who implemented blockchain technology would be able to see his own product in real time consumption or times the product is stored in the warehouse. Franchisor could track if the requirements are met and if the products bought from the agreed partners. This would allow the producer to plan much clearer raw material procurement, production and also react much faster to the market changes.

Thus if we connect Supply Chain management competences and Blockchain knowledge it is possible to reach a totally different quality and management level which converts to a much larger income, better quality and increase in clients confidence.

Crypto Supply Chain

So what can Blockchain Supply Chain do in simple words — technology can enable a more transparent and accurate end-to-end tracking in the supply chain.

Organisations can digitize physical assets and create a decentralised immutable record of all transactions, making it possible to track assets from production to delivery and use by end-user.

Furthermore, as products and services are bought and sold throughout the supply chain, documents relating to transactions and the employees that approved them can be recorded in the ledger for compliance professionals to view and audit. This increased supply chain transparency provides more visibility to both businesses, consumers and governments. Reducing the areas where fraud could happen.

If we would take one step further and involve the end user (buyer) as it is currently done in Brazil where the buyer records his own transactions. We would create a such transparent supply chain that would lead to very transparent product that could reduce fraud to the extreme. If everything is logged at every step means that nothing can be taken without leaving a trace.

The first countries or companies that will start using blockchain technologies will have a very strong chance to become market leaders.

In short benefits of Blockchain

• Increase traceability of materials and products in the supply chain to ensure no side business are done.
• Lower losses from counterfeit/grey market trading
• Improve visibility and compliance over outsourced contract manufacturing
• Reduce paperwork and administrative costs both for supply chain and government companies
• Strengthen corporate reputation through providing transparency not only locally but also internationally
• Improve credibility and public trust of data shared
• Reduce potential public relations risk from supply chain malpractice

About The Authors

Simonas Radkevičius

ICO Marketing Expert
Successfuly launched ICO — Soft Cap reached in 1.5 days.
China, Europe, Brazil market Expert.
https://www.linkedin.com/in/simonasrad/

Darius Radkevičius

Flow Management Guru
Certified Supply Chain Expert
Inventory and assortment management, order automatization solutions for retail.
An author of book: “God, Quantum Physics, Organizational Structure and Management Style”
https://www.linkedin.com/in/dariusradkevicius/

We are probably the first consultants in Europe that accept officially payments in 10 different cryptocurrencies through coppay.eu!

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