Insufficient trust
The physical commodity trading process lacks transparency in terms of origin, quality and quantity of the ordered commodities as well as the shipment details. Hence, buyers cannot entirely trust their trading partners and end up involving mediators such as brokers, private investigators, and arbitrators etc.
Documents
Transactions may include a significant amount of manual administration due to discrepancies in documentation. Manual documentation is both time-consuming and prone to errors. Hence, manual documentation not only leads to a few weeks worth of delay of but also results in increased costs.
Quality assurance
Physical commodities require crucial quality assurance. But worldwide locations where most goods are commonly manufactured have very lenient supervision and security. Even documents can be easily altered. Given the lack of transparency in the system, quality assurance remains questionable in commodities trading.
Secured capital
Given the current market situation, SME's face challenges when seeking assistance from Financial institutions in obtaining proper funding for commodity trading. Despite having met the stringent economic requirements for trade finance and the due diligence check, SMEs are significantly less likely to receive funding of the same caliber as larger players because of the limited visibility and insufficient evaluation from potential financiers.
The KRATOS platform
KRATOS - A decentralized commodities trading platform, significantly transforms and enhances international physical commodity trading across its whole product life cycle. Commodity trading challenges include insufficient trust, manual documentation, and unnecessary intermediaries. These problems often result in significant time-delays and high costs. KRATOS is an Ethereum-based platform that employs Blockchain Technology and Smart Contracts to address these challenges. As a result, the KRATOS platform delivers transparency, higher efficiency, and less complexity than any other existing system. The use of this platform would result in more timely deliveries and lower costs.
KRATOS has developed a Token Curated Registry process for trades submitted through its platform. Trades submitted on the platform for trade finance will be curated by token holders. The result of this curation process will be a list of high-quality trades, which will represent a subset of trades that may not otherwise receive funding.
It would be difficult for other platforms to compete with Arkratos since it already has a functional MVP and has secured commitments for the use of its platform from multiple global commodities trading firms.
Join now : https://kratospct.io/
telegram : https://t.me/arkratos_group
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