Italian-based startup, Local World Forwarders has announced its plans to use the Blockchain to solve a number of challenges present in the logistics space. More specifically, this entails efforts in the freight forwarding sector.
Local World Forwarders (LWF) has developed a solution which utilizes blockchain technology as well as a global network of freight forwarders in order to meet the needs of a substantial amount of people across the world who are unable to receive shipments due to their geographical location.
Logistical issues
People in locations like South America, Asia, Africa as well as Russia have restricted access to first world items that are sold via online vendors because, more often than not, the vendor lacks the capability to fulfill the order. This is because the vendors do not have the logistical framework in place to have items delivered to these destinations.
Online retailers will have logistics policies in place that have sufficed for a while and as such, are largely unwilling to update these systems due to the time-consuming nature of such an endeavour. In addition, it is usually an expensive affair with a certain level of risk involved. This is because the updated system needs to integrate with legacy systems seamlessly and if this does not happen, it may result in downtime where delays are experienced.
In addition, some companies will place certain restrictions on their items and where they can be shipped to as is the case with Apple and shipments to India, for example. Moreover, in developing world countries, official partner distributors of such companies will usually have a limited amount of stock. The merchandise is likely to be inadequate for large geographical areas. These policies leave users excluded from the global market.
LWF believes the integration of the blockchain with an interconnected system of forwarders can help mitigate these challenges. This can assist both private citizens or companies, as well as with existing logistics companies, ushering in a new level of accountability, delivery speeds, and inclusion for customers across the globe.
How It Works
According to the group’s white paper, LWF seeks to create a logistics platform, powered by the blockchain, that will contain all the data that is presently held in the systems that traditional logistic companies use and combine this with sophisticated algorithms to result in an innovative service platform.
These traditionally used parameters are important to the proper functioning of the delivery process. LWF’s use of the blockchain will decentralize this information, making it available for use across a number of logistics-related services. The company intends for this platform to become the standard for logistical data.
Using blockchain technology, the platform will allow for an immutable delivery management system. It will include all relevant information such as shipment data, feedback, freight forwarders, shipping status as well as dispute management. Backed by a delegated Proof-of-Stake (DPoS) blockchain, the platform will also include all necessary compliance features such as Know Your Customer (KYC) ) and Anti-Money Laundering (AML) to ensure protection for both vendors and consumers.
Though the platform will make use of advanced matching algorithms, it will still maintain a user-friendly interface. In addition to a state-of-the-art anti-fraud system and a well-equipped dispute management section, the platform will hold funds in escrow until deliveries are met to reduce the chances of conflicts.
The Services Offered
LWF’s platform will allow for peer-to-peer freight forwarding. This is essentially a service where a customer will be able to procure a private forwarder to send the item of their choice once they have already purchased it. The customer will buy his or her item and have it sent to the private forwarders address at which point the item is shipped to the customer by the forwarder.
Customers will be able to find a suitable shipper, based on certain parameters such as location, on the easy-to-use platform. Once the forwarder has shipped the item, a fee is calculated which is held in escrow until the user confirms receipt of his items.
The fee is to be paid in the LWF token. To maximize customer contentment, all items shipped through LWF’s platform will be covered by insurance to mitigate any losses.
Moreover, LWF will offer private collecting points where users are able to pick up their items at their convenience without having to worry about issues such as distance or opening and closing times. These collection points will be run privately and the platforms’ users will be able to pick which points best suit their needs.
Due to the decentralized nature of this service, the platform will create opportunities for extra income for those who sign up to be forwarders as well as private collection points. Additionally, LWF will develop a mobile app that will function somewhat similarly to Uber, allowing for express deliveries for people in the same area.
This on-demand system will be made possible by data on the blockchain, which will, in turn, ensure safety and security. The platform will also offer traditional direct logistics, with the relevant operating facilities currently already in place.
The LWF TEC Sale
LWF will hold a Token Equity Convertible (TEC) sale from January 23 to February 23, 2018. There will be bonuses given to participators, depending on their time of entry into the sale. This follows its pre-sale as well as early supporters program, which it ran late last year.
The minimum amount accepted to participate in the TEC is 0.005 BTC. The team is looking to raise a minimum of 50 BTC and will stop accepting donations at the 2000 BTC mark. These funds will be used to implement v1.0 of the peer-to-peer (P2P) platform with basic functions and enable it to run on the stable blockchain network. It will also cover costs related to development, marketing, and server expenses.
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