One of the big hurdles for entrepreneurs trying to grow fast and go international, are trade rules, currency considerations, trust, transaction financing, dealing with letter of credits and much more. Global trade for startups is virtually impossible. After getting global four times with our previous businesses, we decided to make it easy for all young entrepreneurs to go international. We started to design a global trade network, leveraging latest blockchain technology, smart contracts and our own global business know how.
Most super growth tech companies were still too slow
When we look back in time, Facebook demonstrated an unbelievable power of growth, yet it was too late in Asia. The same goes for Uber, Tesla and others. On one side conservative investors argue about speed to go international. Yet later stage investors argue about missed opportunities. Conventional growth techniques just did not allow mach faster growth than the current world leaders showed.
We don’t want to support monopolies, but….
Amazon for instance had a great chance to go global without anybody copying it right way. However new contenders like Alibaba do not stop taking market share bit by bit. That means monopolies find their contender quickly and that is a good thing, because we need diversity and options. But maybe it’s a good idea to give fragile startups an opportunity to go international even faster and then learn to defend their innovation at a later stage.
Blockchain based global trade for startups
Global trading platforms are the most used example when blockchain technology get’s explained to industry executives. However global enterprises can’t just rip out their conventional IT system and replace their gigantic databases with a blockchain. Nobody even knows if a slower blockchain would hold the load. That is very different with startups. Their problem in international trade is the initially small volume. For a blockchain however just right. Bringing thousands of startups quickly on a centralized system would be a nightmare. But using a self regulated decentralized solution a great opportunity. Building out interfaces to adopt the blockchain by a startup is easy – for enterprises a life long project. Making global trade rules standardized through smart contracts can be very easy adopted by a startup that has no real rules today. Just creating all the smart contracts for an enterprise would be a complex undertaking with lots of risks and liabilities.
The Society3 Blockchain would allow technology resellers in any corner of the world to safely buy and sell innovative technology that also comes from any place in the world. Tokenized businesses where anybody can trade anything makes the business much more valuable and much easier to conduct.
What does that mean in reality:
- Instead of creating, negotiating and working based on tens of pages of a distributor or sales contract written in many languages and considering many currencies, we invented self executing contracts that define the trade process once and for all. If adjustments are needed in future situations they will be adjusted for future deals as well.
- Instead of trying to understand the other trade party and developing some vague sort of trust, all players on the trade platform are authenticated and clearly identifiable. Trust development is taken over by the system.
- Orders can be placed by anybody and send to any trade partner. The fully decentralized trade model does not need any “distribution organization” in between. The blockchain and the corresponding user interfaces take care of the transactions and processes.
- Shipments are made by the companies (startups) using any of the freight forwarder who docked onto the platform. Tracking and processing of all documents are taken care of by the blockchain and the corresponding self executing contracts.
- Delivery can be made to business partners or directly to end customers. Payments are made in crypto currency and every party takes care of the conversion of crypto into the respective local currency and back.
- Smart contracts keep track on both, the order flow and the shipment flow in digital form. Tax and customs documentation can be either printed when necessary or also digitally transferred.
- In case of a return due to a defective product, the same process goes reverse.
- Transaction cost is covered through miners getting paid for their job in tokens and only over time there maybe a small fee in the sub % range necessary to keep the platform up and running.
- Producer, customer, shipper, customs authorities and any other participant can be rated and that way develop reputation over time.
- The system provides unparalleled transparency due to its decentralized management at lowest possible cost.
Never before it was so easy to sell and buy products from all over the world to all over the world. Most of the expensive and delay causing intermediaries are reduced to one: the decentralized blockchain.
If you like to be part of the Global Trade System project, influence functionality and beta-test the first version of the GTS as soon as it comes out, please join the group and apply for the project.
GTS Project Application
Application link will be available soon