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Shipments disappear all the time. Tracking visibility is one of the main problems in our modern supply chain. If you are a small farmer or business, you don’t have the staff, time, or money to track and trace shipments, especially internationally. ShipChain, a blockchain logistics start-up, believes they can help smaller players better than private blockchains because they are open to the public with a lower cost to participate.
John Monarch, CEO of ShipChain, was interviewed after his company announced today that it would enter a new partnership with Distichain, a blockchain start-up trade finance company. ShipChain will use its blockchain platform to identify and track shipments for Distichain’s clients in the Middle East Region. It is unclear what monetary impact this partnership will bring to both services.
Competitors to ShipChain would be TadeLens, based on Hyperledger’s platform, or GrainChain, based on Symbiont’s platform; both are private blockchain models and have a growing customer base.
Mr. Monarch believes his public blockchain is secure and gives more economic incentives for smaller players to join. The more international partnerships with companies facilitating trade relationships with smaller businesses will create faster adoption across industries, he explained. Mr. Monarch said, “blockchain is a network effect and we want developers to utilize our open-sourced system to build new supply infrastructure and standards.”
ShipChain is based on the Ethereum model. Mr. Monarch believes that private blockchains prevent smaller businesses from participating in supply chain innovations. “Public chains are more inclusive and do not give an advantage to bigger players.” And continued, “Private blockchains make you pay to be a member.”
“This new partnership with Distichain started with a vision to bring an advanced technology platform to simplify the complexity of global supply chains. To that end, we have delivered a true supply chain control tower approach, powered by blockchain to help small and medium global businesses monitor and track their shipments all over the world. This will enable our trading partners to capitalize on revenue in increasingly competitive global markets,” said John Monarch, CEO, ShipChain.
ShipChain said they had completed pilots with Purdue and Scandinavian Logistics Partners AB (Scanlog) in logistical tests. ShipChain was financed through an initial coin offering in 2017. This method of funding has virtually been eliminated in the U.S. because of security trading law.