CargoX May Revolutionize The Shipping Industry With Blockchain Technology

Around 90% of globally traded goods are handled by the sea shipping industry each year, making it one of the world’s biggest industries. The cornerstone document facilitating this industry is the Bill of Lading (B/L), which confers proof of ownership of the goods in question as they pass along the chain from exporter to shipper to importer.

The document is issued by the shipper as they take possession of their cargo, and sent by express courier service to the exporter. When the importer makes payment the exporter will courier the document to the importer, who can then use it to claim ownership of the cargo once it reaches it’s intended port.

Being a paper-based system it suffers from several disadvantages:

Cost — With seaborne trade volumes surpassing 10 billion tons the costs associated with this system add up. Printing costs alone are estimated to be around USD 2 billion, with another USD 5 billion going to couriers of the documents.
Lost contracts — As paper contracts are lost or stolen, the process for issuing new ones is both cumbersome and time consuming. It can also lead to increased costs for demurrage or late arrival of shipments.
Time consuming — The average B/L document gets sent by express courier 3 times. This means that the total time taken for a B/L to travel from issuer to final recipient is 5–10 days.

CargoX are developing the platform and protocols to manage bills of lading electronically, by tethering them to the Ethereum blockchain. Using their smart contracts, shipping logistics will be done instantaneously and without using paper. The potential savings for the industry, both in deferred costs and time saved, are significant.

CargoX are also releasing a crypto-currency, the CXO, to grant access to the system and to be used as payment within the CargoX framework. The CXO tokens are fully ERC-20 compliant.

Valuable Information

Coin Name : CargoX (CXO)

Pre Ico Price : — 1 CXO = 0.0001 ETH

Ico Price : — 1 CXO = 0.0001 ETH

Tokens/Money Raised Through ICO : — US$ 7,000,000

The infrastructure

CargoX have developed the CargoX B/L eXchange protocol (B/L X) to handle the transfer of ownership of bills of lading generated within the network. They have also developed a decentralized application (B/L dApp) that allows licensed users to issue the CargoX B/L smart contracts. The full contracts will be stored using encrypted decentralized storage, and referenced in additions to the Ethereum blockchain.

The issuing and transferring ownership of CargoX smart contracts will be paid for using CXO, which acts as the gas powering the CargoX ecosystem. The CXO tokens are required to gain access to the system, and can be used for payments within the framework. Both issuing and archiving smart B/L contracts will require CXO tokens, and as the network grows it can be used for additional services.

CargoX will act as the service provider for the ecosystem. They will approve carriers as issuers of smart B/L contracts, and define the protocol rules governing the contracts. They will also act as dispute intermediary. For it’s services, CargoX will be paid in CXO which they can transact on the open market.

Other applications

As the network of shippers using CargoX B/L contracts grows, other services needed for the industry can be developed, most notably for handling Letters of Credit (L/C). CargoX are developing a smart L/C dApp that will allow for the money transfers involved in shipping to be handled by the same infrastructure as the smart L/B contracts.

The need for electronic Bill of Lading contracts grew out of the developers experience with 45HC.com, an aggregator of shipping rates from several providers. Linking the CargoX ecosystem to industry platforms like 45HC will allow for buying and selling of free shipping space using CXO.

CargoX will also prepare standardized APIs and SDKs for seamless integration with the B/L X protocol. This will incentivize industry participants such as banks, insurance companies and shippers to form smart contracts for their own products that are compatible with the CargoX infrastructure and can interact with the CargoX B/L eXchange protocol.

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