Skuchain: Blockchain Enterprise Supply Chain For Trading?
What Is Skuchain?
Skuchain, found online at Skuchain.com, is a blockchain technology company catered to the B2B trade finance and supply chain finance market. The company aims to solve problems in the $18 trillion global finance market – an industry that still relies largely on paper for many processes.
Today, the supply chain finance market is dominated by products like Letters of Credit (responsible for $2.3 trillion of the industry’s transactions) and Factoring ($3 trillion). These products make trade transactions complex and cumbersome. The transactions require a number of intermediaries like buyers, sellers, logistics providers, banks, customs, and other third parties. There’s a lack of trust, long distances, slow feedback, and other problems that add time to the transaction process.
Skuchain aims to solve these problems by creating a “commerce cloud” where trade partners can interact in a frictionless environment. Participants in this cloud can gain insight into their supply chains while completing transactions in a more efficient way.
What Problems Does Skuchain Seek To Solve?
There are a number of major problems in the global trade finance and supply chain finance markets, including:
- Much of the industry is dominated by products like Letters of Credit and Factoring, both of which lead to inefficiencies in all transactions
- These products make transactions expensive and complex; today’s transactions require intermediaries like buyers, sellers, logistics providers, banks, customs agencies, and other third parties
- Lack of trust, long distances, and slow feedback also add to the cost of completing transactions
- Small and medium-sized businesses in remote locations often struggle to access financing solutions
How Do Skuchain’s Products Work?
How does Skuchain aim to solve the problems listed above? Skuchain has development projects underway with multiple international banks. They aim to build a “commerce cloud” that allows participants to interact in a trustless, frictionless way while gaining insight into their supply chains.
The company’s products are built on blockchain technology. Blockchain is used to empower collaboration in the industry, taking the real world needs of buyers and their supply chains and providing control in inventory procurement across all partners. Participants can also access deep blockchain data for enhanced decision-making.
Ultimately, Skuchain’s products bring blockchain technology – like smart contracts and zero knowledge transactions – to the supply chain and logistics industry.
Skuchain Blockchain Enterprise Supply Chain For Trading Products
Skuchain offers five core products, including all of the following:
The Skuchain EC3 (Empowered Collaborative Commerce Cloud) platform combines cutting edge blockchain technology with modern IT platforms to provide seamless adoption of Skuchain’s solutions across existing supply chains.
Instead of having to separately choose a cloud environment, an underlying blockchain protocol, and a set of applications, businesses can immediately access an integration of all three. This significantly reduces the complexities of a supply chain financing business adding blockchain to their services.
Popcodes, or Proof of Provenance codes, are a crypto serialization solution that tracks the flow of goods on the SKU level. They work as tokenized identifiers on the blockchain, providing bank-grade traceability that tracks physical value on the supply chain.
Skuchain’s patented Popcode technology has can track sub-assemblies, parts, and raw materials to ensure there are no gaps in the journey from the early stages of processing to the completion of the finished product.
Customers can also access Popcodes to track where their product came from. A customer can scan a Popcode on their mobile phone, for example, and see the journey from raw materials to finished product.
Skuchain offers “Brackets”, which are cryptographically secure smart contracts that govern an entire purchase cycle.
Using Brackets, a company can digitize its POs, invoices, bills of lading, letters of credit, and all other documentation involved in a supply chain transaction. Many of these documents were previously completed on paper. Skuchain moves them to digital smart contracts.
Skuchain’s Inventory Management and Trading Services (IMT) LLC is a special purpose vehicle on the blockchain that provides inventory financing that de-risks transactions and uploads capital opportunities for the entire supply chain.
When a business finances a transaction through IMT, it allows both buyers and sellers to leverage currently unavailable arbitrage opportunities. In a typical transaction, the original purchase contract between the buyer and seller is assigned to IMT on the blockchain. This effectively acts as a blockchain-based security interest that provides the collateral to the investor in the IMT fund. IMT funds are used to purchase goods from the seller.
The end result of this process is that all suppliers from tier 1 to the most upstream partners can finance their inventory at the buyer’s cost of capital.
Zero Knowledge Collaboration
Companies in the industry can work together without sacrificing privacy. They can collaborate in a trustless environment, secured by blockchain technology and smart contracts.
Skuchain understands that complete transparency isn’t a good thing for all companies in the supply chain – they want to maintain some element of privacy and anonymity. Skuchain’s Zero Knowledge Collaboration technology provides that privacy while still allowing companies to safely transact.
About The Skuchain Company
Skuchain is based in Mountain View, California. The company was founded in 2014. Major investors include the Digital Currency Group, Amino Capital, and Fenbushi Capital.
Advisors include Ken Rosenberg, SVP of Bridge Bank, Professor Baba Shiv of Stanford GSB, and Mas Sakamoto, angel investor and former tech executive.
The team includes serial entrepreneurs from Harvard, Stanford, MIT, Berkeley, Columbia, and UPenn.
Skuchain is providing blockchain-based solutions to an industry that sorely needs it: the logistics and supply chain industry. The company has a number of products – including smart contracts and other blockchain-based solutions – that improve the efficiency of supply chain transactions.
To learn more about Skuchain’s offerings, visit online today at Skuchain.com.