Quote from: pjames on October 09, 2017, 08:32:03 PM

Hi guys. Just bumped into your ICO by a reference.
So are you building something like cryptocurrency eBay?

All,

I am Karthik - one of the ModulTrade founders (CTO).

Thanks Pjames for a great question. EBay-Magento is a good comparison as far as our marketplace is concerned but we also offer banking/finances and other trading services like logistics, taxation etc to complete the transaction. We are a complete end-end platform for global trade.

As many of them might not be aware of the complexity of global trade, I thought I'll give a brief introduction to ModulTrade, Trade finance and blockchain so we can have a lively discussion.The entire team is committed to answering / clarifying all your questions and doubts. Please fire away. I also encourage everyone to try out our prototype which is available in modultrade.com

Regards
Karthik

Modultrade democratizes Trade Finance

Trade finance is the process, by which importers and exporters mitigate trade risk through the use of financial institutions that serve as trusted intermediaries. These intermediaries provide assurance to sellers (in the event the buyer doesn’t pay) and contract certainty to buyers (in the event that goods are not received).

Payment and delivery terms are documented in a letter of credit (LC), and the financial institutions delivering this LC receive fees for assuming risks, as well as for documentation and oversight of payment terms. Due to the nature of global deals (distance, differing local laws, withholding taxes, customer knowledge) the use of LC has become a very important aspect of international trade. LCs facilitate 47% of global trade finance (circa $2.8 trillion per year worldwide).

Yet, letter of credit is a cumbersome process. Banks typically require a pledge of securities or cash as collateral for issuing a letter of credit. Banks also collect high fees for service, typically a percentage (ranging from 5 to 20%) of the size of the letter of credit. The drastic criteria for a bank to issue a letter of credit, as well as the high cost of it make it difficult for small and medium enterprises (SMEs) to be included in this process . Half of SME applications are rejected, (compared to only 7% for multinational companies). “Unmet demand for trade finance is $700 billion in Asia, and $120 billion in Africa.”

ModulTrade is a platform based on blockchain smart-contract (for the automation of the letter of credit) where MSMEs can participate easily to the trade finance processes : Letter of Credit, deal financing, tax management, … etc..

ModulTrade’s Value Ecosystem (MVE) is based on MSP (multi-sided platform) , which aims to create value through the network effect for the following three main constituents:

Trade counterparties (sellers and buyers), delivering to them a platform of trust and reputation, simplicity of trade and an instrument for value exchange and trade initiation (i.e. Modultrade Coin or MTRc) . Modultrade is this global marketplace where trade services meet trade participants.

Third-party trade related service providers (e.g. supply chain providers, lawyers, tax officers, financial institutions and fintechs, ...etc.). These providers meet on modultrade open platform to contribute to the trade service of counterparties.

Third-party trade software developers, delivering trade solutions on top of MTRc functionality.

At Modultrade, we use the three key features of blockchain to simplify trade finance:

(1) cryptographic security, allowing parties involved in trade to collaborate easily and cost efficiently,
(2) distributed ledger and network allowing transparency, traceability and global footprint
(3) consensus mechanism providing trust among the deal participants:

Together, these features provide the foundation for building a new generation of a “democratic”, trustful and efficient trade finance system. In this new hassle free system, SMEs, which are the main components of local modern trade, can expand and take part in global trade.