If you’ve read my previous post on Blockchain & Logistics, you’ll have guessed i’m a huge fan of the potential blockchain has in supply chain. The recent ICO for OriginTrail.io is a fantastic example of a use case that isn’t just a hollow whitepaper. The product itself has actually been in development since 2013, starting with an alpha version for organic beef products, that then lead to a beta in 2014 for dairy products with integration for Microsoft Navision. In a 2015 a beta version of OriginTrail for poultry and veg products was tested that featured integration into SAP and other 3rd party enterprise software. This early melding with often-used enterprise software, really demonstrates to me a company that has a real product with real end-users in sight – and that this is not just a quick ICO to raise capital and then start working on a product. This is a serious product with serious goals. OriginTrail is also open-source, and actively seeks industrial and technical feedback to grow stronger. OriginTrail is currently in pilot programs (in a centralized state) in Europe and China, according to the whitepaper.
The OriginTrail protocol was designed specifically to eliminate the main barriers that prevent the effective exchange & validity of data in supply chains. Concerns over the few increasingly fragmented and costly current solutions being another prime motivator for the development of the product. So what do customers actually get out of the product? Essentially, all stakeholders in the supply chain will be able to share all their sensitive data in a secure manner. In the below image we can see part of the issue OriginTrail looks to solve, by combining all of these individual data silos its one comprehensive format. that can be accessed by all stakeholders to ensure traceability, accountability and audit/legal compliance.
This might not sound impressive off the bat, but lets take a look at the Horsemeat Scandal that hit Eurpoe back in 2013. Essentially food advertised as containing beef were found to contain horse meat instead, with as much as 100% of the meat content not what was advertised in numerous cases. Some of the undeclared meat was also pork, which obviously raises a whole host of religious and cultural issues with the Muslim and Jewish communities, that view pork is a prohibited food. Major breakdowns in traceability of the food chain were discovered following authorities investigations, and OriginTrail is one of the solutions being brought to market to combat this. With rising trends in organically grown food, allergy-ingredient clear foods (i.e nuts), vegan and gluten free foods, it’s now imperative that suppliers have clear tractability and thus accountability across the supply chain for their products. VeChain, one of the competitors OriginTrail will face, have been working with the Liaoning Academy of Agricultural Sciences to:
Eliminate the trust crisis regarding green agriculture authorization among consumers.
Compatibility with Enterprise Software
OriginTrail from their beta onward have sought to integrate their product with existing enterprise software (notably SAP and Microsoft Navision), and this is clearly set out in the vision section of the whitepaper – “OriginTrail assures compatibility with existing ERP systems, making implementation process quick and efficient.”. Ensuring this compatibility with customers systems will encourage quick adoption in order to meet existing legislation requirements, to increase communication and efficiency between steps in the supply chain, while reducing costs with the protocols scalability ability. Other areas the protocol will add value could be product recalls, chain of custody accountability, freshness for perishable lines, customs compliance and inventory management. SophiaTX is another blockchain startup seeking to utilize existing enterprise software within supply chains. Clearly there is an opportunity here for big business.
In a real statement of belief in the product, OriginTrail back in November was awarded the “Food Safety Innovation Spark Award”, by Walmart’s Food Safety Collaboration Center in China. The firm was one 12 companies selected to join the first generation of the Walmost Food Innovation Program, and the only project steeped in blockchain. We know Walmart is investing heavily in blockchain to improve its efficiency and transparency in supply chain,
At Walmart, Mr. Yiannas is more optimistic. His company has already completed two pilots with IBM — moving pork from Chinese farms to Chinese stores, and produce from Latin America to the United States — and he is confident a finished version can be put together within a few years. “I think this is our one best hope for getting it right,” he said.
If OriginTrail can convince Walmart they have a promising product, after already completely pilots with tech behemoths such as IBM, (who have been exploring projects in blockchain since early 2014), then it’s an incredibly promising sign for the company at such an early stage.
Token Utilisation & Economics
The $TRAC token enables the OriginTrail ecosystem to function by incentivizing data exchange. The system is a number of nodes, and supply is met by the demand of users of the protocol, such as supply chain data producers and consumers, that seek to share their data. The token is a way to reward supply chain data producers and consumers on one side, with the node holders on the other. It’s the incentive for the nodes to function on the network to pay for their outgoing such as computing power and electricity.
OriginTrail is blockchain agnostic, so whichever blockchain tech they utilize, some other costs may incurr, such as GAS if run on the NEO blockchain, or however many units of gwei required for Ethereum. Currently, the $TRAC token is an ERC20 token on the Ethereum blockchain, in the future this could be converted to the ERC223 token spec if approved as standard.
There are a total of 500 mil $TRAC tokens in the total supply, with 50% available for the token sale. The ICO price was set at 1 TRAC = $0.1 USD, and the hardcap was hit after only two days. 2% was kept for bounty programs, 5% for the team and advisers (being released over two years in stages). 5% was set for a liquidity pool, 18% for founders and PreICO contributors, and 20% for future development.
The future looks bright, with pilots and live cases with the test network coming up in a few short months. Feb 2018 will see a Hong Kong office open to generate partnerships with the Asian market, and a European wine pilot project finishing up (Vechain recently completed a pilot like this with a Chinese importer to counter fake wine.) In Q2 will see the launch of the OriginTrail test network, and an open call for use cases voted on by token holders – a little like the voting right Modum holders have. The decentralized network will open on Q3 2018, along with a protocol update to meet additional IoT standards. The US office for OriginTrail will also open in this quarter.
Full list of planned developments can be found on their roadmap.
The OriginTrail.io website can be found here. Their twitter account is @origin_trail, and you can chat with the Telegram group here. At time of publish, $TRAC is only availible on two decentralized exchanges, EtherDelta (not recommended since they were bought out) & IDEX (higher fees, but seems to work well).
As always, this post is not financial advice, please do your own research. The whitepaper can be found here and is well worth the read.
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As $TRAC is such a new currency, if you’re looking to add it to MyEtherWallet or MetaMask:
Contract Address: 0xaa7a9ca87d3694b5755f213b5d04094b8d0f0a6f
Decimal Places: 18