CargoX entered the logistics services segment with a big bang, receiving its funding for the development of its revolutionary solution for logistics in a flash. In April CargoX already presented a live working demo of its Smart B/L, a blockchain-based solution for fast, safe, reliable, and cost-effective digital processing of a smart bill of lading. This document is used in logistics, where its value directly equates to the value of the transported goods in a shipping container – its value thus cannot be overstated, and under no circumstances can it be lost, damaged, or arrive late. But, of course, it nonetheless does, and often at that!
CargoX has developed a decentralised platform based on the Ethereum network, and the company is working on producing a range of new products for international business, based on blockchain technology. They have positioned themselves as one of the key market players to watch in the coming months.
Below is our recent interview with Stefan Kukman, CEO at CargoX:
Q: Could you provide our readers with a brief introduction to CargoX?
A: We are a team of logistics and IT experts with an extremely detailed insight into the logistics documentation process and logistics itself. We aim to reshape the global logistics industry with a new technology that will help importers, exporters, shippers, and release agents process one of the most important documents, the Bill of Lading, in a new way – on blockchain.
We introduced the Smart B/L documents based on this open blockchain technology to replace old-school paper Bill of Lading documents, to improve safety, speed, and price/performance per transferred document. The Smart B/L will empower users to state and transfer cargo ownership rights without the hassle of handling paper. The old style B/L can take weeks to transport across the globe, it is expensive, and it can be damaged or lost – and our solution solves all these problems – in mere seconds.
CargoX’s Smart B/L solution makes these risks a thing of the past, and it provides transparency for all the parties involved.
Q: Online shipping platform 45HC.COM has become the first shipping company to accept CXO tokens; could you tell us something more?
A: The online shipping platform 45HC.com is the first company in the CargoX ecosystem that has integrated CXO tokens (tokens issued by CargoX during our token crowdsale) as a payment mechanism for its own shipping service. When customers use the service for booking, they are presented with the 45HC Ethereum wallet address for payment during the check-out process. Once the transfer of CXO tokens is confirmed, the payment is completed – faster than with any bank!
We expect that other CargoX ecosystem partners will soon realise that they can gain new customers from a growing pool of CXO tokens holders. We are confident that holders of CXO tokens are interested in advanced logistics services, as they have once already acted on their understanding that logistics is the perfect application of blockchain.
We need to underline that the CXO token is not proprietary to CargoX. We encourage other logistics companies to implement payment with CXO tokens. The main advantage of the CXO tokens compared to other cryptocurrencies is in the group who own it. We are confident that they are mostly interested in advanced logistics services, and they help us raise the industry’s awareness about our technology. And this is a huge advantage in the market!
Q: The shipping industry still uses paper for issuing proof of cargo ownership; how is your solution different?
A: Our solution enables us to change today’s physical (paper) proof of ownership used for claiming cargo at the destination port with a blockchain-assisted digital proof of ownership. This will make the process more secure, and the rights to the goods furthermore become instantly transferable, easier to archive, and massively cheaper than the current (paper) solution.
We will connect all the involved parties – producers, importers, and freight forwarders – in a well-balanced ecosystem based on trust and frictionless interactions. We will provide tools for the seamless exchange of documents, time optimization, and flow of transactions. At the same time we will provide a high level of security, transparency, and traceability – the top three pain points of the logistics industry.
Q: What do you think about the future of cryptocurrencies?
A: We believe that cryptocurrencies have a high social and economic potential, and that they can drive faster and safer transactions, which are also cheaper than through regular banks.
But it is also important to know the difference between cryptocurrencies and blockchain technology itself. Even though the cryptocurrencies are the topic of much debate, blockchain technology itself is uncontroversially legitimate and is already fit to use in any IT environment where transparency, traceability, and fast and transparent ownership transferability are needed.
Our CargoX Smart B/L solution is proof that blockchain technology can be used to transform completely traditional business cases, where users have no need to know anything about cryptocurrencies or to worry about anything else.
Having a pure blockchain-based solution under the hood, while enabling users to do business in almost the same way they’ve always done, is an achievement in and of itself. Our customers never deal with cryptocurrency, and need no knowledge about it if so they choose. Our graphical user interface completely shields them from the underlying specifics. But if they want, they can use CXO tokens for payment.
Q: What does the future hold? Where is the company headed?
A: Our partner companies are currently field-testing the solution, and we are in daily contact. Feedback is overall very positive, and we are proactively addressing any possible concerns. We are working hard on making the production release of our solution the most intuitive and secure product out there. We are planning to release the product in Q3 2018.
As we are seeing people finally grasp the difference between closed, private or hybrid blockchains and a truly open blockchain solution, such as ours, we feel confident. We are preparing for major exciting integrations with the most important enterprise software solutions. We will provide a connector that will ease and speed up such integrations for the majority of large logistics companies.