Farad is a Malaysian company that promises to revolutionize the future of innovation by issuing digital tokens linked to economic production. Find out what that means today in our Farad review.
What Is Farad?
Farad, found online at Farad.energy, is a cryptocurrency backed by real economic activity. Specifically, the token is backed by the production of ultra-capacitors within actual factory settings.
The token is being created by a Malaysian company. The company is holding its ICO throughout August and September. Each token you purchase during the ICO entitles you to a portion of future ultra-capacitor production from Farad’s factory in China.
Farad, which also goes by the name FARAD, is built on the Ethereum blockchain. The ecosystem revolves around the use of FRD tokens.
Ultra-capacitors, by the way, are energy storage units used in factories worldwide. Farad is producing the ultra-capacitors from their factory in China. When you buy a token, you get a slice of that ultra-capacitors economic production over a 36 month period.
How Does Farad Work?
Farad attempts to provide a new way of commoditizing intellectual properties rights. Specifically, the platform attempts to commoditize intellectual property rights related “to set a set of technologies related to metal oxide based ultra-capacitors development and production.”
The platform involves the use of forward contracts based on the manufacturing application of the technology. These forward contracts are structured as the underlying assets of a digital commodity – the Farad token. The commoditization program entails identification of the economic appropriation rights for the technologies. These rights are coded into an Ethereum smart contract, thereby tokenizing that asset. Users purchase the rights to that asset with the FRD token.
The Farad smart contract is obviously a key part of the system. The architecture of the smart contracts is built by separating areas of concerns into their own contract. Then, these contracts are assembled together to make a solid end contract. All of these intermediary contracts can be reused at a future point in time, which makes the development of other smart contracts in the future much easier.
Let’s break it down into terms that are slightly easier to understand.
Basically, ultra-capacitors are these energy storage units used in factories. They’re a new and expanding technology. Farad combines this technology with the blockchain, allowing token holders to hold tokens backed in real economic value. The value of the token is based on the production of the ultra-capacitors.
Each FRD represents a right to the forward production of ultra-capacitor cells (UCC) defined by the millifarad (mF) of the UCCs. A total of 16 billion mF will be produced over a period of 36 months.
The company behind the FRD token is producing ultra-capacitors. The manufacturing plant for the Farad ultra-capacitors is located in Wuzhou City in the Guangxi Province of China. The first phase production floor has an area of 20,000 square meters.
Farad’s whitepaper outlines all of the following key features for the platform:
There’s no need for any central party or trusted authority to act as a middleman for the transaction. Just like we see with other blockchain technology companies, the transacting parties rely solely on each other through a trustless system. The trust is being placed in the system itself – not in a third party.
Irreversibility And Immutability:
Once a transaction has been approved by both parties, and certain values and terms have been set, it is no longer changeable or mutable. Parties cannot unilaterally change or cancel unless pre-agreed arrangements have been made. These changes must be made and agreed within the public domain instead of on a personalized domain, which makes the transactions immutable. Obviously, this is the same benefit we see with most blockchain technologies.
Automatic Contract Execution:
Once a contract is created, it will be executed automatically without any further reference to either party. The system executes the terms of the contract.
All trade executions are performed in public “view” and are fully transparent to everyone.
Obviously, the key features above are the benefits we see from most blockchain technology companies – including transparency, immutability, and trustless.
Who’s Behind Farad?
Farad, also known as the FARAD Cryptoken Program or FRD, is a Malaysian company that published its whitepaper online earlier this summer. On August 21, the company officially launched its FRD token to the market at the Ritz-Carlton in the Dubai International Financial Centre.
The company is led by Dr. Wan M Hasni, CEO of the project.
The name of the company comes from the measurement “millifarad”, or mF.
The Farad ICO
The Farad ICO is taking place throughout the end of August and September. During the ICO, you can pay FRD tokens.
Funds raised from the ICO will be used to purchase equipment, procure stock for raw materials (metal oxides and carbon-based materials), fund further intellectual property protections (i.e. patents), and develop the blockchain. Funds will also be used for ultra-capacitor marketing and ICO promotion.
The tokens are unique in that they are generated in conjunction with the production of the Farad ultra-capacitors. Each FRD token represents the rights to the forward-purchase contract of 80 million ultra-capacitor cells produced by a Chinese company over a period of 36 months.
During the ICO, 1 FRD will be equivalent to $12.50. Approximately 1.2 billion FRD will be issued during the ICO – half during the pre-sale and half during the full sale.
Ultimately, FRD is a unique cryptocurrency that captures two significant technological innovations: Ultra-capacitor and the blockchain. It also combines two high-growth industries, including energy storage and internet/telecoms. It’s a unique opportunity to participate in a digital economy based on physical economic production. You can learn more by visiting Farad.energy.