Since time memorial traders and individuals have been trying to resolve the problem of transporting goods to waiting businesses and personal clients. Before we got fast cargo ships and aeroplanes it took weeks or months to transport goods across long distances.
The need for credible, efficient courier service has always been an issue from the days when humans began to be involved first in batter trade and international trade. This necessitated traders and some individuals to come up with means to try and solve the difficulties involved. International trade was growing and the world was slowly becoming a small global village. Shipping companies and courier service providers came to be and solved some of the issues but not all of them.
Getting a credible shipping entity is not only strenuous but sometimes impossible owing it to the enormous challenges facing the industry. Fraud and corruption where some entities are mere scams hence you are duped and your money is lost, poor communication from your service provider where they don’t avail the accurate location of your goods or at least have a real-time tracking system and the exorbitant fees most of these entities charge as shipping costs. Lack of accountability and transparency from your shipping partner costs money and time not forgetting the emotional and physical fatigue in case parcels are lost. Additionally, the middlemen whose operations are bureaucratic in nature end up also providing a new set of challenges and this has been the main cause of most scandals that we have and those that we keep experiencing. Clients are frustrated always and are left looking for options that serve their purposes. The relief that should come with using a shipping company is non- existent because of the multiple glitches involved.
Blockchain technology solves all the above problems. Blockchain technology is basically a decentralized and digitized database of information and cryptocurrency storage. This means that at any given time, available information can be duplicated, replicated but cannot be changed. Also, it is not possible to hack such a chain since there is no central storage of this information as it public and is hosted by multiple computers simultaneously all over the world. It was first implemented for Bitcoin but can now be used for various platforms like the shipping industry where a public registry is important especially for the clients. TMX Global saw this need and has been on the leading end of implementing it in Africa specifically in Kenya by launching and being the first cryptocurrency logistics company that will be fully utilizing blockchain.
Their usage of Blockchain Tech links all the relevant stakeholders starting from the suppliers to the buyers, the importers, the freight forwarders and even the relevant government offices. By connecting everyone in this supply chain and availing all information that is needed and available, time and money are saved. Additionally, the ecosystem created also means that transparency is heightened and that traceability is top notch hence solving all the issues especially those involving fraud and corruption that the traditional shipping sector is experiencing.
TMX Global is a one of its kind Logistics Company that seeks to solve all challenges associated with the industry for both the sellers and buyers by introducing blockchain technology with smart contracts (a distributed computer program that will execute when special conditions on the Blockchain are met.) The Hyper Local Blockchain caters for the ever-changing client and seeks to incorporate the local small businesses in Kenya starting from the grocery stores which means that local customers can have their local produce availed at the shortest time possible through linking riders, customers and sellers to their platform all these has been the necessitated by the dire need of on-time deliveries. On the Global scale, the complications involved in the chain of shipping will be eradicated through the blockchain platform by linking all the chain of events that are involved in logistics from the initial start of shipment to the custody of shipment and finally the monitoring and delivery of the said shipment.
TMX Global intends to open and launch in Kenya making it the very first entity that has utilizes both cryptocurrency and blockchain to start operating in the African continent. They largely aim to bridge the gap and close loopholes that most logistics companies ignore by creating a platform where both buyers and sellers can freely interact. Additionally, buyers can track their shipments and have a close estimate of all the costs involved first hand as explained in detail here.
Transparency makes a business and ideally, that is what TMX Global is providing. This is both for their investors and clients as they set to launch their first Initial Coin Offer (ICO) in September. The venturing into blockchain and cryptocurrency is the only new move that TMX is making as they have been in the logistics business before and now with the new model they will not only eliminate fraud and corruption but will also enhance seamless global trade through increased efficiency and effectiveness besides reducing costs.
Initially TMX Global was just your normal shipping company that saw them gain depth and knowledge into the sector. The team is robust and diverse with extensive knowledge and lots of experience from technology to business development and legal relations. The management team is made up of individuals that have also invested in cryptocurrency and amongst its earliest adopters, for example, Allan Miller who is the Chairman of the company. They have an advisory board to deal with all matters that might arise in the merged blockchain and shipping are and finally the Technical team which made up of young people that are both tech and crypto enthusiasts.
Their quest for investors is solely based on their need to grow and diversify. All angel investors looking to having a stake into tech and crypto company now have the means to diversify their portfolio. Investors will enjoy maximum benefits starting from the lucrative monetary returns that are catered for everyone’s wallet. The localization of their coin has fully incorporated the local market dynamics hence the use of Safaricom’s Mpesa as a means to ensure streamlined investments. Access to equity and subsidized token prices are other benefits to these investors. Investments will always be a risk regardless of how traditional they are and the more risk-averse an investment is, the less the returns which are not the same here where the minimum investment of about $250 has a projected ROI of up to $1250 for the pre-ICO and up to $6250 for the ICO.
TMX Global is clearly offering a peek into what the future of blockchain applications will look like.
Caroline Mumbe is passionate about anything money related. She is an entrepreneur and writer who enjoys simplifying financial concepts and making sure people lead their best financial lives. She reads a lot and knows the best coffee joints in Nairobi.