ModulTrade: Democratizing Global Trade

The world is trying to move towards globalization for a few decades now. Globalization is defined as 'the free movement of goods, services and people across the world in a seamless and integrated manner.'

The irony with that is apart from a handful giant enterprises, nobody else has been able to reap the benefits of the global market.

Small scale enterprises have traditionally found it difficult to attract customers or workforce from countries both near and far away.

There are obvious barriers like lack of trust or a proper medium to communicate and the complex cost border trade and tax system.

Small scale enterprises are numbered at 400 million in the world currently and ModulTrade believes that it can help these enterprises to reach a global audience with the help of Blockchain.

What is ModulTrade? (https://en.modultrade.io/)

ModulTrade is company started by a team with decades of experience in the international trade and multinational services. They believed that smart contracts are the key to unlock the globalization revolution where a certain small enterprise from one part of the world will be able to buy raw materials and trade with another similar small enterprise based out of a different corner of this world.

According to the team, 'ModulTrade is a smart-contract blockchain-based ecosystem where MSMEs can meet, commit and execute trade globally, easily, trustfully and efficiently.'

This ecosystem will benefit the traders and 3rd party service providers like Logistics and supply chain management companies or Insurance providers, etc.

Let us suppose, we know a guy named Jim in Brazil. Jim owns a jam processing plant in his hometown but finds it hard to find a regular supply of high quality and cheap tin cans to pack his jam.

Now let's introduce Mario in this story. He lives in Germany and he there owns a tin can manufacturing plant which can provide cheap and high quality products to Jim if only they both had a medium to communicate and a trade process they could trust.

ModulTrade could solve this problem.

In this particular scenario, Jim can post his requirement on the platform. And once, Mario confirms that he can deliver the products, they can set up a smart contract.

After that is done, Jim will deposit the full payment for the order, which the smart contract will only release after the shipment has been delivered to him. Marco will put the shipment number for the order produced in the smart contract, which will help the blockchain technology to track the order.

Will it function properly?

But, was ModulTrade able to overcome all the barriers involved in international trade?

It provided a platform and an online marketplace for buyers and sellers to come together and communicate.

To overcome the barrier of distrust, smart contracts are used. This way both the parties are assured of the validity of the agreement.

Contemporary banks do provide a line of credit option, which works as an escrow between the two parties, but then it still has the element of uncertainty. Additionally, the banks charge high commission rate for providing the service and the lead time also increases as a byproduct.

Moreover, ModulTrade will also add a Reputational Network to the platform, which is a quantitative measure of a user's reputational value or in other words, a user's ability to generate trust and respect within the platform.

Smart contracts can also use IOT data to track the physical status of the commodity while in transit.

ModulTrade will use the token MTRc (Ethereum-20 Based token) to facilitate the use of blockchain in the system.

About the ICO

MRTc tokens will be distributed during the ICO which began on November 23rd, 2017 and will last until 27th of January, 2018, during which 100 million tokens will be issued.

30 % of the total tokens will be available for sale (pre-sale and ICO) and 18% of the tokens are reserved for the team and advisory board. 20% is alloted for product development, whereas the remaining 32 for developing the ecosystem.

Investors can exchange 1 Ethereum token for 700 MRTc tokens.

The ICO is split into 3 phases, wherein investors will be offered 25% bonus in the first phase and 15% and 10% bonus in the subsequent stages.

The soft cap for the ICO is 5,000,000 whereas hard cap is set at 30,000,000 tokens.

Investors can use ETH, BTC, LA and FIAT to buy the tokens

The Funds will be used for ecosystem development, product development and expansion into various geographical locations.

Our Opinion

Like I already mentioned, the team consists of individuals who have decades of experience in international trade and multinational banking services and they realize that B2B transactions on a global scale have tremendous potential, which ModulTrade can really benefit from.

The team is set out to democratize global trade and with the ecosystem, they do believe they can achieve that. Blockchain and smart contracts effectively remove the lack of trust barrier and with future advancement like the example of IOT data given earlier in the article, the adoption of this platform can be really quick.

Investing in their idea doesn't sound half bad based on all the information we have.

To know more visit:

Website: https://en.modultrade.io/

Whitepaper: https://en.modultrade.io/ModulTrade_White_Paper.pdf?v1

My Btalk profile: https://bitcointalk.org/index.php?action=profile;u=1027561