Blockfreight is a new end-to-end blockchain system for the global cargo shipping industry. It is the product of an Australian-based research company, which has been tasked with the development of a solution to the primary pain points in the current system that requires manual matching up of bill of lading with letters of credit and other settlement mechanisms.
Blockfreight is focused on improving market access and building financial strength in global trade through increased income and shared costs for the global supply chain. The company behind the venture has now embarked on an initial token offer of up to $1.9 million of Blockfreight Tokens [BFT:XCP], according to Julian Smith, the company’s co-founder and CEO.
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Blockfreight’s solution consists of three key elements:
– Smart contracts to securely, permanently define the bill of lading, terms of payment and other key elements to a completed cargo shipment, built on the Ethereum blockchain.
– A tradeable token built as a Counterparty asset, which is secured by the bitcoin blockchain. This token pays for the transaction fees and effectively eliminates spam on the decentralized system.
– Storage of the bill of lading and other documents too large to fit into a bitcoin block using the IPFS (Inter Planetary File System) protocol.
Blockfreight’s token on Counterparty [BFT:XCP] is currently an active blockchain and has commenced on a crowdsale that is based on sales volume instead of time. Unlike most token sales, the Blockfreight tokens will sell a fixed number of tokens at each price regardless of how long it takes.
Following a private presale of 1,000,000 tokens, the initial crowdsale will offer 4,000,000 [BFT:XCP] tokens for two cents (USD) until they are sold. After that,another 10,000,000 BFT:XCP tokens will be offered for three cents, then 15,000,000 tokens for four cents, and finally 20,000,000 tokens for five cents, for a total of 50 million tokens for $1.99 million.
The company says that the tokens will be redeemable for $1 of fees on the system when it becomes operational in early 2017 (with testing in late 2016). According to the investors presentation by Blockfreight, [BFT:XCP] will be hosted by Bittrex, the U.S-based global alternative cryptocurrency exchange.