With the advent of blockchain technology, ModulTrade has emerged to allow businesses to trade with one another in a cheaper, faster, and more secure way. The ModulTrade Value Ecosystem, MVE, is the name of the ecosystem for facilitating trade.
By using blockchain technology to improve trade, ModulTrade aims to tap into the global B2B (business-to-business) ecommerce market, which is expected to grow to $6.7 billion by 2020. The team behind ModulTrade aims to capture a market with 400 million MSMEs (micro, small, and midsize enterprises).
Blockchain technology allows parties to execute contracts when their criteria are met without the need for expensive third parties such as banks. The blockchain ledger of transactions is immutable, trustless, and tamper-proof. By lowering costs and other barriers to B2B trade, ModulTrade will make it easier for businesses to compete in the global marketplace. The high costs of conducting business, especially internationally, favor large corporations with greater capital, which can obtain financing much easier than small and midsize businesses. By lowering the costs of conducting business, ModulTrade will empower small to midsize businesses and give the leverage they need to survive and thrive in the market.
As an example, using smart contracts on the blockchain, small businesses can use them to create Letters of Credit and other trade guarantees without requiring banks, which charge relatively high commissions. Using the MVE, a Letter of Credit protocol will be applied using a smart contract to ensure the seller delivers the product to the buyer and the buyer pays for it. According to the protocol, the buyer releases funds into the smart contract, which acts as an escrow agent. Funds are released to the seller once the product is delivered within the time previously agreed. If the product is not delivered, funds are returned to the buyer.
The time-savings using MVE will also allow businesses to run more efficiently. With its user-friendly platform, taxes and insurance costs can be calculated without the need for third parties for validation. By integrating these fees into smart contracts, businesses can conduct more trades in a more timely manner and cut costs, substantially boosting their profits. Using the blockchain, these transactions can be done in real-time, avoiding the delays that currently hinder global trade.
According to CIO Review, ModulTrade has been rated one of the top 20 Most Promising Blockchain Technology Solution Providers of 2017. The panel that made that decision was comprised of top executives, venture capitalists, industry analysts, and the magazine’s editorial board. In particular, ModulTrade was recognized for its novel use of blockchain technology and for its potential to facilitate global trade.
The ModulTrade token, MTRc, plays an essential role in the ecosystem, allowing businesses to interact with one another and initiate transactions. It is ERC20 compatible and runs on top of the Ethereum blockchain. As the amount of trade on the platform grows, the more demand will exist for MTRc, thus potentially rewarding investors in the log run.
The ICO for ModulTrade ends January 27, 2018. Given the innovation within the project and the potential growth in this untapped market, investors will likely be well-rewarded should ModulTrade fulfill the goals in its whitepaper.
*I am receiving ModulTrade tokens for the growth of the community.
For more information about ModulTrade: