ModulTrade — Democratizing Global Trade With Blockchain Technology

It is all a matter of perspective, do you want to keep the same old systems going, keep the same failing organizations in business or do you want to break up the status quo for the better? In the world of trade, banks sit and act to administer the process, at a cost. They charge you for an account, they charge you to move money from your account and then charge you when you want to buy and sell abroad. And yet they work for you and use your money to make money.

The business world is held ransom to an inefficient and expensive process that empowers and enriches financial institutions who have little or no incentive to reform the system. But reform is coming, change is happening and ModulTrade is in the vanguard, leading the way.

How? Simply through blockchain technology, the sound and sensible principles of distributed ledger technology may have been masked by the fizz and pop of Bitcoin and alternatives currencies but the fundamental strength of the design of the blockchain makes it as secure as the bedrock of this planet. And the ideal source from which to build a new business world, where proven funds sit in genuine accounts creating a safe open system where irrespective of size or location businesses can meet and transact, without any middlemen and agents of middlemen to muddle the process.

The banks who run the system tell us this is the way it is, that this is the way it has to operate because this is the way they operate, have always operated and they know best. Yet every major financial institution has faced failure or been sued for fraud in the past 5 years.

So, imagine a world where through your mobile phone you can buy and sell directly with partners knowing through the power of a smart contract that you will get paid, on time and in full. No delays, no extra costs, no compounding of risks. That world, that vision is being made real by ModulTrade, today.

Introducing ModulTrade

ModulTrade, one of the first blockchain projects in the trade finance sector, comes to market with a new digital trade concept, to allow small businesses from around the world to trade efficiently, securely, and with ease. A smart-contract based eco-system, ModulTrade will provide micro, small and medium enterprises (MSME’s) a comprehensive range of services, minimise traditional charges and support cross-border trade with emerging markets.

ModulTrade is a blockchain startup in the trade finance sector with an aim to allow small businesses all over the world to involve themselves in international trades efficiently, securely, and easily.

The ModulTrade platform which is based on a smart contract ecosystem will provide MSMEs with a complete range of financial services as well minimizing transactions and supporting international trade with current and emerging markets.

With the ModulTrade ecosystem, millions of MSMEs across the world will be connected to negotiate, agree, and execute trades that benefit parties involved fairly.

Businesses will only be matched with trusted suppliers that have their reputation verified. All funds involved in trades will also be transparent while trades recorded in ledgers are 100% verified as goods are tracked to the point of delivery.

ModulTrade CEO and co-founder, Evgeny Kaplin, announced the launch of their token pre-sale on 4th of October at the IOT Summit in Barcelona, and immediately started to attract attention amongst Token sale participants: the reason perhaps has a lot to do with the fact that the ModulTrade team are using the power of blockchain technology to break open the closed world of trade finance. A world where small and medium sized businesses pay hefty fees to sell goods and services across borders.

For the average consumer, the world of trade finance barely registers, but it does impact them in higher prices and less choice. In its go to market strategy, ModulTrade set out to highlight the inequality of the current system: how letters of credit and other financial products designed to mitigate counterparty risk are, in fact, adding significant cost and wastage into the system and are redundant in a blockchain grounded world. The ModulTrade vision is built on one of trust, and a viable, cost efficient business model, where companies can transact and trade using tokens in a eco-system branded the ModulTrade Value Eco-system (MVE).

The MVE acts like a network linking buyers and sellers where each party can understand the capacity of each other to pay for a product. Trust is reinforced by token holdings and performance ratings. Smart-contacts act to underpin the transactions and to track the shipment of products. It is clean, it is elegant (in its design) and can be understood without calling your accountant; the business interface has been designed to work across desktop, tablet and mobile, so presents as an easy to use intuitive system that works around the needs of the small to medium sized business enabling them to chart a pathway for growth without incurring punitive costs or risk.

What Does ModulTrade Work?

While mainstream institutions have rested, the London based company has identified the struggles and barriers MSME’s face with the current banking system, and have undertaken the first steps in laying down the foundations to utilise blockhain technology to build a robust eco-system that is fit for purpose.

ModulTrade’s proposition leads the way in using blockchain technology, famously known for supporting the creation of digital currencies, to its full potential, and applies the ground-breaking lesson of the distributed ledger to trade, leaping over legacy systems and operations.

Within the ModulTrade Value Eco-system, millions of MSME’s will be connected to meet, commit and execute trade. Businesses will be matched with suppliers, with funds and reputation verified and clear trade ledgers, as goods are tracked to the point of delivery. As a result building trust and transparency, all the while expanding their reach further than currently possible, widening MSME’s status from local to global.

A disruptor in the market, the innovative core of ModulTrade’s proposition will democratize global trade by connecting the heart of blockchain technology to real life trade transactions, diminishing the lengthy letters of credit process, which often results in the end of the trade cycle for many MSME’s. With decisions made automatically through its’ smart-contract technology, ModulTrade’s Value Eco-system will completely streamline the full trade process, saving time and money.

Combining the development of ModulTrade’s Value Eco-system with the launch of the new ModulTrade crypto token (MTRc) will provide the golden ticket to buy and exchange directly within the platform. Architected on Ethereum and complying with the widely-accepted ERC-20 token standard, users of ModulTrade will be able to exchange value in real-time. MTRc will also be compatible with all ether wallets and can be easily added to common crypto-exchanges for trading.

With an average of 20 years of experience in financial trade, the ModulTrade team have joined forces to revolutionise the industry, with a shared passion to re-invent the way MSME’s operate and trade. On the concept, Evgeny Kaplin, ModulTrade CEO, commented: “We are passionate about giving all businesses, no matter their size or location, the same opportunities to build, develop and grow their companies akin to big corporations.

Their proposition aims to increase accessibility and minimise costs, and with smart-contracts and blockchain, we can mimic traditional banking systems, but at a transaction fee of as little as 1%; compared to current charges at 4–15%. Through our token sale, we want to empower MSME’s and with the support of participants, we hope to make the ModulTrade concept a reality.”

ModulTrade rises above others by creating opportunities for not just users of the eco-system, but also added benefit to the ongoing development of the technology and provides a networking platform for service providers.

The launch of ModulTrade’s token sale provides a means to scale out the current beta pilot and go global with a message of transformation and opportunity for all businesses, whatever the size, wherever the location.

New MVP released for ModulTrade

ModulTrade have just released a new version of the ModulTrade minimum viable product for another round of testing. This latest prototype will now test all the trading flows using a test Ethereum blockchain platform.

The following features have been added, to create a complete and full trade flow:
  • A Smart-Contract is created for every traded proposal when it’s traded
  • A Buyer can make a test payment with ETH to the Smart Contract
  • The Smart-Contract tracks and saves the package status
  • The Smart-Contract sends funds to the Seller when a package is delivered
  • Follow the link below to try it for yourself and share your comments on how we can improve. We value your feedback, so we can go on to build the ModulTrade Value Eco-system to its full potential!
What is MTRc?

MTRc is a crypto token issued by ModulTrade which enables its users to connect ​​to ​​the ​​ModulTrade ​​platform ​​and ​​its ​​ecosystem, to make transactions, and to pay fees for the services consumed. In order to ensure the portfolio of tools and services offered by ModulTrade and its partners provides high trust at comparatively low cost without reliance on expensive and inflexible established trade intermediators (banks), ModulTrade is going to make heavy use of blockchain technology.

ModulTrade or its partners can provide short-term escrow service to trade counterparties. In such a case, a trade face value will be paid in fiat currency to an escrow provider, while ecosystem and service commission will be paid with MTRc tokens.

A buyer will transfer the trade face value in fiat currency to the dedicated escrow account. Escrow provider will allocate trust collateral in MTRc tokens to the smart contract. The amount of the trust collateral will be sufficient to account for potential MTRc price volatility during the trade period. When trade is complete, escrow provider will transfer the trade face value in fiat currency to the seller.

In the unlikely event that this does not happen, MTRc tokens from the trust deposit will be used to automatically pay the trade face value to the seller. In case of a dispute, ModulTrade will play the role of an arbiter to decide which party is to receive which portion of the trust collateral.. The trade and service commissions will be paid in MTRc tokens to ensure ecosystem and transaction efficiency.

Obviously, this type of transaction is not as efficient and cheap as a purely crypto token transaction. However, it proves to be a great compromise until MTRc gains wider acceptance.