Trace Network is pushing towards adding a Non-Fungible token as an identifier to real world products, thereby enabling secure traceability of real world products on Blockchain.
The hype is all about NFT, DeFi, Crypto and Blockchain as a technology. Yet, I still open an e-commerce site and buy what I need with the hope that what I am buying is genuine or atleast that I have enough of the knowledge to detect if it fake. Neither options are fool proof.
For years, Blockchain is being touted as the solution to this genuinity problem (yes its a term I coined). The high priests of Silicon Valley and Blockchain Valleys across the planet have suggested solutions like for food from farm-to-table traceability, for medicines from raw-material-to-pills, you get the gist. And all of this on a distributed network.
So here comes Trace Network, with a promise to create and assign a non-fungible token to each product, which works like an ID card (a barcode) for that product and hence be traced from shipping to purchasing, over a Decentralized Finance protocol.
That, is a lot to take in. Lets break it down.
Introducing Trace Network
The fourth industrial revolution brought with it not only numerous solutions but also left a few grey areas. These ranged from counterfeit & invisible merchandise to disconnected data silos to expensive & cumbersome Cash Flow Financing options. In order words, you really don’t have a robust way to determine whether those Gucci bags in your home are original.
With advancement in blockchain technology, decentralized finance (DEFI) industry is emerging as a plausible extension to the existing avenues of working capital and trade financing. Similarly, NFTs built over DLTs have unique capabilities to solve problems of supply chain traceability & digital ownership of products along with physical acquisition. How you may ask? Here’s a visual depiction of Trace Network’s vision.
NFT based on-chain merchandise Identity, settlement and trade Finance solution.
The Trace network is a protocol that strives to fill up the holes in the existing Web2.0 digital systems. Here’s what it offers:
- Universal NFT based Merchandise Identification. Thereby with every physical purchase of the merchandise, buyer can also acquire its NFT, as digital proof of ownership, that transfers from the previous owner/merchant to the new buyer.
- Process-driven EDI smart contracts on Trace Network to ensure seamless and efficient transfer of data in a decentralized fashion. Contracts can be integrated with legacy system. These can also act as a proof of transactions to be used for various financing options.
- White label algorithmic stable coin to be used for settlement, hence remain unaffected by the volatility of crypto markets we all are too familiar with.
- Protocol will not only focus on basic financial options like Invoice Factoring, Invoice discounting etc, but will also enable various structured financial products like packing credit loans, LC, Credit Limits (Credit Delegation) etc.
- Decentralized Credits & Trade Terms enabled by companies over Trace Network.
Benefits on Trace Network
Trace Network seeming a farsighted venture. It comes with its hands full of rewards -including making businesses sustainable by enabling core components like Transparency, Trust and Efficiency to achieve complete digital transformation.
Other key features include:
- Real-time merchandise traceability
- Fast and efficient data transfer
- Smart contract enabled process provenance
- Efficient working capital financing options
- Real-time trade settlement
- Unlocking dead liquidity enabling financial mileage
The Team and Deployment
Trace Network is built by people from industry active in emerging tech for over two decades.
The two co-founders Lokesh Rao and Sunil Arora come from several years of experience in technology consulting. Sunil has over 35 years of experience in Apparel / Fashion & Lifestyle domain , both in Retail & Manufacturing space in almost 50 countries. While Lokesh, has spent 12 years in enterprise technology space helping companies acquire and implement technology across more than 20+ countries.
Trace Network is partnered with EasyFi team who are mentoring the project as well. On top of that, Trace Network will fully deploy on Polygon (Matic). All in all, I am just writing this article to bring attention to another DeFi project from India. That makes me proud.
Trace Network Token
Decentralization is inefficient and insecure without a native token to keep the participants in check. Trace Network’s indigenous network token offers an array of coming-to-age features:
- Protocol Governance
- Fuel for minting NFTs enabling unique merchandise identity
- Benchmark to maintain stability in white label stable coins
- Community incentivization & other market outreach programs
As the picture below represents, Trace Network protocol incorporates Distributors, DeFi Protocols, Suppliers, Retailers, Manufacturers and Logistics.
If Trace delivers on the promise, we could see brands like Zara, H&M and other fast fashion brands along with exclusive fashion brands can benefit from low cost genuinity tagging on their own merchandise.
Now, the risks!
We are all Crypto Enthusiasts and while we understand the potential of the technology, we really cannot put a timeline on when Distributed Ledger will be mainstream.
DeFi and NFT are the talk of the town today, and people largely believe they are hyped. So, while Trace Network can achieve what it is dreaming of in the long run, investing into the token comes with financial risk that is significant in the crypto market. Be careful while investing.
As to what really is the roadmap, timelines, tokenomics, we will know once the Whitepaper is out. Be sure to watch this space for more!
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