ShipChain wants to solve the logistic industry problems. They want to create a fully integrated system across the entire supply chain. (1) The market’s global value was $8.1 trillion in 2015. Unfortunately the various players of the supply chain have no unified platform where they share information. Most land transportation providers, carriers, governments, and freight forwarders have outdated ways of keeping track of their goods. This results in wasted time, resources, and money. ShipChain says there are 5 major problems: Bad tracking, Lack of transparency, No accountability, Middlemans markup and Misaligned incentives. They want to fix these problems by creating a fully integrated system across the entire supply chain, from the moment it leaves the factory or farm to delivering the finished product to the customer’s doorstep; federated in trustless, transparent blockchain contracts. Information about loads, geo-waypoints, and basic compliance information will be recorded and publicly validated within the sidechain, an alternative side storage that communicates with the main chain. Upon delivery and confirmation, the contract will be completed and recorded on the main blockchain, releasing any payment escrows. (1)
The Ship-Chain platform has five main components which are explained below:
Tracking and Transparency
ShipChain wants to use an Electronic Log Device (ELD) to integrate into the network of trucking freight companies. (2) Individual pallets or crates will be tied to the address of the container they are on, and containers will be tracked as a whole.
The ShipChain blockchain will supplant the need for brokers by allowing carriers the ability to find shipments and route their team for multimodal transportation based on factors such as distance, traffic and fuel use. This load system will generate a smart contract upon pick-up and will hold payments in escrow until conditions for release are met, while using the main blockchain and side-chain for tracking and cargo security monitoring.
By using barcodes or hardware RFID integration, assets can be automatically verified each time electronic logs are reported.
By encoding and encrypting waypoint information and data about which loads belong in a shipment, digital escrows can be used to fairly assess whether goods actually arrived in a particular shipment. Individual players can be rewarded for their participation in a system, they plan to provide driver rewards for obeying speed limits, behaving safely, and observing green fuel economy practices.
The decentralized brokerage system will be an open marketplace connecting shippers and carriers. ShipChain will allow open access to its blockchain marketplace, but also build the first platform of services upon it, ShipChain Web Platform, a centralized system for booking and managing freight shipments across many carriers and modes of transportation.
Carriers will be able to post capacity for their shipping vehicles and lanes, dynamically set pricing based on supply/demand, adjust for estimated fuel cost, and have cargo booked to their routes automatically. Customs brokers, if needed, will also be granted account rights to assist with paperwork filing.
The overall shipment completion will be stored on the main Ethereum blockchain, individual tracking waypoints and load data can be stored and verified in a side-chain operating on the ShipChain Protocol, such as the one ShipChain Foundation will implement and maintain called “Ship-Chain Prime”. Large partners will be able to operate their own ShipChain Protocol side-chains, with (or without) aid from ShipChain Foundation.
Use of the ShipChain Token (SHIP)
Transactions on the blockchain for freight shipments will be paid in tokens, and settled in tokens. The ShipChain Web platform connecting to the blockchain will allow users to pay either directly in tokens they hold, or purchase tokens from ShipChain for booking freight (for example with USD). Tokens valued at up to 20% of each freight transaction will be given to the driver/carrier as incentives for safe and timely deliveries, as well as environment focused such as reduced idle time.
24.2%: Sale 2; 20.8%: Pre-sale/sale 1; 15%: Team; 13%: Driver rewards; 12%: Advisors & bounty; 10%: Company reserve; 5%: Airdrops + Carrier rewards
Company and Team
CEO: John Monarch, CEO of Direct Outbound, an e-commerce logistics company in the US. Familiar with the logistics industry, from postal logistics and parcel private carriers to air, sea, and intermodal land freight. (3)
CTO: Lee Bailey, 11+ years full-stack developer and blockchain consultant. Experienced architecting, securing and deploying distributed processing systems. (1)
CMO: Brain D. Evans, Inc. 500 Entrepreneur, the founder of BDE Ventures, the 25th fastest growing advertising and marketing agency in America, and the founder of Influencive.com. Spent 15+ years in online advertising. (4)
– Perdue Farms, a major chicken, turkey, and pork processing company. ShipChain and Perdue Farms will work on a pilot project to implement blockchain technology through key parts of Perdue Farms’ supply chain.
– Direct Outbound, a full service warehousing and fulfillment center. Including e-commerce, Healthcare, Government, direct to consumer, B2B, retail, and industrial third party logistics services. The focus is to affordably increase the quality of care for clients.
– Influencive, a media outlet, focusing on unconventional thinking, entrepreneurship, marketing, and blockchain.
– Sweetbridge, a Swiss-based non-profit foundation gathering interested industry technologists, blockchain projects, and open-source contributors from around the world to form a blockchain alliance.
– BiTA, their goal is to bring together leading companies in the freight technology industries that have a vested interest in the development of blockchain technology.
– Crypto Valley, an independent, government-supported organization. Their mission is to build the world’s leading ecosystem for blockchain and cryptographic technologies in Switzerland.
‘18 Q1: Token Generation Event main-sale (January 2018)
‘18 Q2: The initial Track & Trace platform is integrated with government-mandated ELD devices.
‘18 Q3: Testing of ShipChain’s decentralized brokerage Web Platform. Application development on ShipChain’s open ecosystem is promoted to partners.
‘18 Q4: Track & Trace platform allows carriers to develop their own sidechains. The first version of the ShipChain Web platform is released. The pilot program is extended into integrated supply-chain testing.
‘19 Q1/2: Development of custom side chains for large carriers on the Track & Trace platform. The ShipChain Web platform is integrated with external data sources and additional carriers.
‘19 Q3: A small carrier is acquired for internal testing to accelerate the adoption and development of the Track & Trace platform. International partnerships are developed to focus on expansion into global sea freight.
‘19 Q4: Relationships are established with government regulators to cement ShipChain as the favored tracking technology vendor, and enhance ELD compliance. Air and sea freight pilot programs are initiated.
‘20 Q1: Community open source projects are sponsored to accelerate application development on the ShipChain blockchain. Extensive custom sidechain research is conducted for 3PLs and large shippers with internal fleets.