Hot Topics

Advertisement

Advertisement

dexFreight, MakerDAO, And Centrifuge Complete Pilot To Connect Multi-Trillion Dollar Logistics Industry With DeFi

dexFreight, MakerDAO, And Centrifuge Complete Pilot To Connect Multi-Trillion Dollar Logistics Industry With DeFi

dexFreight, Centrifuge, and the Maker Foundation have tokenized freight invoices to use them as collateral for accessing liquidity and filling short term financing gaps for trucking companies. The pilot, conducted on top of dexFreight’s network platform, connects logistics collateral to the lower cost liquidity available in Decentralized Finance (DeFi), a new financial ecosystem based on decentralized networks and open-source software.

The 8 trillion-dollar global logistics industry is cash flow intensive and requires expensive and illiquid assets such as trucks, trailers, warehouses, etc. Very often carriers must finance the transportation of loads to cover, fuel, maintenance, and driver expenses like food and shelter. Trucking companies, however, don’t receive payment until long after shipment is delivered – on average 37 days in the US market.

For an industry in which 97% of trucking companies own 20 trucks or fewer, this lack of access to capital represents a problem. Trucking companies must sell invoices to factoring companies, who charge on average 3% of the total invoice value.

In order to offer an inexpensive alternative to factoring, this pilot proves the feasibility of connecting trucking invoices with the lower cost instant credit of DeFi. The logistics industry’s invoices can now be used in the DeFi ecosystem as collateral for short term financing.

“This is the first step towards a transformation of the logistics industry, and we could not have realized such a milestone without our partners Centrifuge and the Maker Foundation. We can now reduce friction, extend instant credit lines, and offer highly competitive rates to dexFreight platform participants,” said Justin Banon, dexFreight COO

In the pilot, a third party logistics provider agreed to pay on 45 day terms a carrier who opted to finance the shipment invoices using the dexFreight platform’s ‘dexFi’ feature. dexFreight then used the Centrifuge node to mint an ERC721 (non-fungible) tokens as digital representations of the invoices. Using Tinlake an ERC20 token representing the combined liquidated value of the assets were minted and used as collateral for the Maker CDP to borrow DAI against it.

The carrier received DAI to their Coinbase account. They could then either cash out to their bank account or hold the funds in DAI. The total advanced in the pilot was $1,600 at 70% loan to value (LTV), the ratio of a loan to the value of an asset purchased.

“I'm excited to see dexFreight leveraging Centrifuge to provide liquidity to their users, by accessing decentralized sources of capital through Maker. We are looking forward to scaling this partnership to the next level, supporting entire supply chains,” said Martin Quensel, COO of Centrifuge.

The next planned phase of the project, provided all conditions are met, will aim to tokenize invoices that can ultimately be used as collateral for Multi-Collateral DAI.

“This pilot is validating our mission and demonstrating how Maker is shaping the future of commerce. We see the potential in supporting a wide range of asset types that can serve the logistics industry as well as our Community,” Greg Diprisco, Head of Business Development at Maker said. “The future is near!”

The next step in the decentralisation of movement of goods

dexFreight is building the universal decentralized, open-source network for collaboration and coordination in the movement of goods. dexFreight facilitates lower cost access to liquidity to the supply chain and incentivize the equitable distribution of value.

The platform enables parties to move goods faster and with transparency for all actors. Safer transactions, auditable and traceable chain of custody, as well as data accuracy usher in a new era for logistics providers. dexFreight connects the logistics industry to accessible and competitive Decentralized Finance (DeFi) Capital, solving the industry’s historic liquidity issues.

Taking the financial supply chain to a new level

An open network that connects businesses in global supply chains,  Centrifuge enables them to exchange business documents in a private way while allowing for an immutable single source of truth for said documents. In addition, it provides users with the possibility to create a digital representation of the assets exchanged on the network, in the form of Non-Fungible Tokens (NFTs). Tinlake is the first dApp to run on Centrifuge.

MakerDAO is a decentralized organization dedicated to bringing financial stability and transparency to the world economy. Its purpose is to create an inclusive platform for economic empowerment -- MakerDAO strives to unlock access to the global financial marketplace for all. MakerDAO enables the generation of Dai, the world’s first unbiased currency and leading decentralized stablecoin.

You can share this post!

Advertisement

Blockchain prepared to be integrated into the Ministry of education for Vietnam graduates in 2021

Blockchain prepared to be integrated into the Ministry of education for Vietnam graduates in 2021

Quick take

1 minute read

  • Vietnam is getting ready to integrate blockchain technology for issuing diplomas in 2021.
  • An announcement was made that highlighted that the ministry has teamed up with TomoChain in order to put a national student certification on the proprietary blockchain platform from TomoChain.

The Ministry of education and training in Vietnam is getting ready to integrate blockchain technology for issuing diplomas in 2021.

An announcement was made last week on the 18th of November that highlighted that the ministry has teamed up with TomoChain, a Singapore-based start-up, in order to put a national student certification on the proprietary blockchain platform from TomoChain.

As a part of this project, the Vietnam ministry is getting ready to issue all kinds of diplomas granted by its training units and the high school of higher education through this new system. Furthermore, this new system is going to come into effect at the end of the school year next year.

Interestingly, the announcement specifically highlighted the new blockchain-based certification system which has been designed to enable for transparent and immutable verification of the qualifications for all of its students. The deputy minister at the Vietnam Ministry of education, Nguyen Van Phuc has said the following:

“Diploma and certificate management is an issue that needs to be resolved by technology, which is significant for the whole of society and also cost-efficient for the diploma management system in particular, and education in general.”

This is an exciting development and could prove to be successful if integrated prep properly. Could this pave the way for other countries to follow in Vietnam's footsteps?

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Nigeria could be looking into blockchain technology to help boost its economy by $10 billion

Nigeria could be looking into blockchain technology to help boost its economy by $10 billion

Quick take

1 minute read

  • How blockchain technology could help grow the Nigerian digital economy.
  • The director-general of the NITDA says up to $10 billion could be benefited from blockchain

Director-general Kashifu Inuwa of the national information technology development agency in Nigeria (otherwise known as NITDA) has recently said that the country could potentially expect a revenue stream of up to $10 billion from the use of blockchain technology over the next decade.

Speaking at a stakeholder meeting in Abuja, the director-general explained how blockchain could benefit the Nigerian digital economy and that it would facilitate the development of such if needed.

Saying at the meeting, he said:

“We want Nigeria to be strategically placed to capture value from this economic potential of blockchain… Looking at our youthful population, which is mainly digitally native and with our position in Africa, we are looking at how we can get at least around six to 10 billion dollars by the year 2030.”

He further added:

“Blockchain is going to play a key role in terms of creating, tracing products and services.”

The director-general further went on to highlight a study from PricewaterhouseCoopers published back in October which found that blockchain technology could potentially add almost $2 trillion to the global gross domestic product over the next 10 years. As a result of this, it would make it 1.4% of the global GDP in 2030.

Furthermore, he added that Nigeria could incorporate such technology through its payment services, digital identity, customer engagement and more to boost this higher.

“We see the need for us to position our country well so we can capture value from the blockchain."

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

HollyGold Is Leading The Charge In Blockchain-Based Entertainment

HollyGold Is Leading The Charge In Blockchain-Based Entertainment

Whether you’ve noticed or not, there’s been a sharp rise in consumer preference for digital content since the dawn of the internet. This is mainly due to the lack of legal barriers to accessing information on the world wide web. With a simple internet connection, anyone can access whatever information they desire. Further, they can get it any way they desire, from movies, sports, politics, religion, etc. Nevertheless, the current iteration of the internet, commonly referred to as web 2.0, is plagued with a variety of issues such as centralized control of digital information, lack of data transparency,  challenges in protecting authorship (often leading to piracy) just to new a few. Because of these limitations, many people become discouraged from taking a more active role on the web to create movies, games, and other forms of entertainment.

To solve this significant problem, a variety of blockchain-based entertainment applications have been developed to address most of the issues plaguing web 2.0 These include but not limited to:

  • HollyGold
  • Flixxo
  • Theta Networ
  • TV two
  • Monvid
  • Breaker
  • Vuulr

All the above networks have been making significant strides in order to revamp the current entertainment industry. But as we all know, the success and level of influence of a company depends, to a greater extent, on the reputation of the participants, and not just the idea itself. And that is exactly where HollyGold stands out from the crowd.

HollyGold is a revolutionary blockchain-based entertainment company founded by world-renowned experts in the entertainment and financial technology industries. The company has formed a strategic partnership with Base FX, a well respected digital effects company in the world. Base FX has numerous awards in the visual effects industry, with production studios and offices in globally distributed offices in Beijing, Kuala Lumpur, Los Angeles, and others. Moreover, Base FX has also assisted in the production of more than 200 films and has equally expanded its collaboration as it teamed up with Industrial Light and Magic, another US-based visual effect-related company.

On November 17th, CEO of HollyGold Dior Wu spoke at Michael Madsen’s grand imprint ceremony, held at TCL Chinese Theatre, in Hollywood, California. Madsen is known most notably for his role as Vic Vega in Reservoir Dogs. The event was meant to pay tribute to Michael for his decades-long career contributions. The ceremony was proudly sponsored by HollyGold to show its dedication to the Hollywood Film Industry.

A close-up shot of CEO of HollyGold, Dior Wu at TCL Chinese Theatre

The HollyGold blockchain has its own native token - HGOLD - which is used to facilitate all transactions within the network. The chain has adopted a series of technologies such as hash locking, distributed private key control, etc to maintain security while retaining the transparency and overall integrity of the network. HollyGold will serve as a home for a variety of services such as celebrity interaction ceremonies, tours, VIP dining packages, and more. Anyone who wants to gain access to these services and also take part in the further development of the HollyGold ecosystem will need to purchase the HGOLD tokens.

The HollyGold token (HGOLD) was sold on DigiFinex exchange from the 9th to 13th of November 2020 via their Apollo launchpad. The event was very successful with the last round of token sale sold out in just 20 minutes. The token sale attracted 5,6k participants, and in total raised $4.9m. DigiFinex has opened trading for HGOLD/USDT on 16th November 2020 at 11:00 (GMT+8), with price shooting up by 300% within 24 hours of opening the trading pair.  

DigiFinex is considered one of the leading cryptocurrency exchanges in the crypto space with 6 offices in different parts of the world. It is regularly ranked among the top 10 exchanges by trading volume and liquidity. It offers a wide range of financial services surrounding cryptocurrency, including crypto spot, margin, derivatives, P2P trading; as well as crypto asset management services including fund and loan. Further, DigiFinex also deploys a security mechanism that uses multiple safe layers to provide users with the same level of protection they would expect from a well established financial institution. The founders of the crypto exchange are also leaders of renowned tech companies from the United States, Hong Kong, and China with a proven track record of working on networking and financial technologies.

Blockchain-based entertainment platforms have existed before Hollygold and many more might be launched in the future. Regardless, HollyGold has been the only one to garner a substantial public interest within a very short time. This is mainly due to its partnership with renowned companies like Base FX and the fact that it is supported by many celebrities, entrepreneurs, and investors around the world. Check out more on HollyGold by visiting their website.

Marcus Henry is an American Journalist with over 12 years working in the tech industry. He has been actively involved in the crypto community for the past three years and currently works out of Austin, Texas. He covers breaking news, writes perspective pieces and reflections, and conducts interviews with industry professionals and community members. Follow Marcus Henry on Twitter- @MarcusHenryHODL

Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of my content as such. I do not recommend the purchase, sale, or holding of any cryptocurrency or other product and/or service. Nothing I write about should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please do your own research and consult a certified financial professional before making any investment decision.

 

Related TAGS:

You can share this post!

November blockchain activity in Norway is hinting towards new CBDC

November blockchain activity in Norway is hinting towards new CBDC

Norwegian financial industry is facing some major news. Recently making a central bank digital currency (CBDC) has been one of the hottest topics of the country. This is not a big surprise because today there is a tendency in the world’s leading countries to digitize certain industries and financiers are among those industries. China, Sweden, and Denmark are among those countries that are currently discussing the creation of digital currencies. Probably Norway is going to join the list considering the great increase in blockchain activity of this month in Norway. 

The country is showing the biggest confidence in the use of cryptocurrencies even in the middle of the coronavirus crisis. The prediction about the blockchain space is becoming more and more optimistic in Norway as a result of the increased blockchain activity in November. The increase in crypto use is no surprise for Norway because the government in the country strictly regulates the cryptocurrency market and even more, they try hard to bring innovations to the market. For example, recently crypto mining company Bitfury developed a plan to upgrade crypto-related infrastructure in Norway that is worth $35 million. As Cointelegraph reports, the firm is going to launch crypto mining as a service and apply changes to existing cryptocurrency infrastructure which will probably push even more people to use cryptocurrencies. 

Besides, the increased activity in the blockchain space can be related to the growing popularity of the online gambling industry during the pandemic. Gambling in Norway is legal and harshly regulated. As a result, online casinos operating on the Norwegian market are known for their high secure measures and this safe gambling environment pushed many new customers during the lockdown to enter the industry. Therefore, the usage of cryptocurrencies increased even more and today most of the people involved in the gambling industry are actually aware of the many advantages of bitcoin and other digital currencies.

This is why it’s believed that introducing CBDC which is a completely new form of digital currencies can actually work in Norway and bring tons of benefits to the economy of the country as a result. 

Why is it a good idea to integrate CBDC in Norway?

Norway is among those countries that are believed to be at the top of the list of countries that will fully integrate CBDC in their practice. The main reason for this is probably a falling level of cash use. People in Norway tend to keep up with digital technologies, which is why they almost stopped using physical money. Specifically, recently it was announced that the cash usage in Norway has drastically decreased and in fact, today cash is used only by 4% of the Norwegian population. The decrease is especially notable since the lockdown started which has a number of reasons. First of all, during several months people were sitting at home, all the stores and places where the money is usually used were shut down and there was no need to use physical money. Besides,  holding actual money in hands and exchanging it with other people raises the risks of getting infected and personal contact with strangers is one of the most dangerous threats to our health these days. So, people started to switch to digital money almost completely, and as a result, cash usage has declined. 

Although the first wave of the pandemic has already passed, cash share today is approximately the same and even a little bit lower. What is more important is that this kind of low number hasn’t been observed in any other country and therefore, the cash usage is lower in Norway than in any other country. This means that Norwegian people are ready to say goodbye to a traditional physical krone and switch to digital money. However, the central bank prefers to start realizing its plan and launch CBDC instead of bitcoin and other cryptocurrencies because indeed, the digital krone legalized by the central bank will have more advantages than those benefits provided by cryptos. 

Is it necessary to integrate CBDCs in Norway?

Despite the fact that increased use of blockchain makes us believe that Norwegians are ready to start using CBDCs, studies prove the opposite. After four years of continued research, now Norway has finally concluded that there is no urgent need for launching the central bank digital currencies. Even if it’s certain that CBDC’s will bring certain advantages to the economy of China or Denmark, the CBDC system may not be so useful at the given moment for Norway. Like many other countries, Norway is in its developmental phase of this initiative as well and tries hard to design the most optimal system of digital currency and explore related technological solutions. But the central bank of Norway is concerned about disrupting the existing monetary system and its consequent impact on politics and the economy. 

To understand possible risks, let’s first make clear what CBDC actually means. A central bank digital currency is a digital type of national money that was inspired by bitcoin but pretty much differs from cryptocurrencies which are not issued by the government. Therefore, implementing this digital currency in the national financial system will cause great changes in the structure of the monetary and payment systems. This is why Norges Bank, the central bank of Norway tries hard to estimate whether it’s appropriate to issue CBDC in Norway to ensure an efficient and secure payment system in the country. 

For now, the central bank presumes that although introducing digital currencies will probably be beneficial for the country’s long-term economy, at the given moment there is no desperate need to take steps forwards right now. As they believe, it’s better to continue conducting research and analyze the consequences of this new payment method and take further steps only after maintaining confidence in the monetary system. Only after this, the central bank will start thinking about achieving the goal of introducing a central bank digital currency.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!