YOOSourcing speaks at Bitgosu’s Event in Seoul

posted in: Blockchain | 0

It’s been just two months since our first crypto exchange listing on Coinbit back at the beginning of May this year, and we have been invited back by Bitgosu again to speak at one of their incredibly popular blockchain events. Along with a handful of other hot blockchain companies, YOOSourcing CEO Milad Nouri, and Yosuke Yoshida, Chief Business Developer for Emurgo (our main blockchain advisory partner) took to the stage to speak about the potential both YOOSourcing and Cardano will have on the future of business and trade.

Looking at the major issues and costs affecting the buyers and suppliers in the sourcing industry, Milad spoke on how the global sourcing industry struggles to overcome the cost of networking and the cost of verification. These costs to buyers show up early in the relationship with new suppliers and make up a large part of their Business Development costs. Before they can source products from a new supplier, they usually need to spend an incredible amount time and money finding the supplier through traditional networking processes; this is mostly done by attending tradeshows, like the famous Canton Fair. But the costs of physically traveling to the tradeshow, paying for hotels, the time spent roaming around trying to find product you need amongst thousands of others truly makes this traditional method of sourcing a product one of the most costly aspects of the business.

Other companies have created massive platforms to try to help people find the product they want to buy, but this is where the second major cost appears: the cost of verification. There are incredible amounts of money that must move around to get the initial order manufactured, and even more checks and balances along to the way involving costly third parties to guarantee trust. Droves of bankers, lawyers, office administrators, and quality control inspectors are contracted to ensure what was requested is what gets delivered, and that it gets delivered on time. If a mistake is made it can cost from tens of thousands of dollars for disrupting the supply chain and these penalties can balloon all the way to millions of dollars in fines if the order is large enough or incredibly late. These kinds of problems must be controlled and the cost of verifying that this supplier is trustworthy and dependable to hold up their end of the deal is incredibly important. Therefore, the costs and time needed to really build this trust is one of the biggest costs to this global industry. Regardless of what product you are trying to acquire, these costs plague all buyers in the global sourcing trade.

Milad summarized how YOOSourcing’s intelligent machine learning rating system will tackle these two main costs and help create an immutable record of work on similar orders for similar products from suppliers and help to give them a clear seal of approval that could become the industry standard for buyers everywhere to help check the integrity of a supplier. Our rating system will gather transactional data through the orders placed through our smart contracts. This data would then be aggregated in a way that still maintains confidentiality but the resulting score would paint a more objective picture than simple subjective comments and reviews can. Milad envisions that this rating system will drastically cut both the cost of networking and verification, by largely shortening the time need to find and vet new suppliers.

Following Milad’s explanation of the main value that can be gained through the core value of our tech he talked about the token economy that will exist in the future phases of our platform and the value it can provide. From purchasing crucial services like quality control checks and logistics, to purchasing advertising and even placing the deposits for the order are all ways the YST token will be leveraged to say buyers and suppliers money while using our solution. This kind of volume of transactions (deposits for orders can run upto millions of USD) will create a huge demand for YST since it will be a much cheaper option for escrow than expensive bank transfers and letter of credit services.

After Milad’s presentation, Yosuke Yoshida spoke about the importance of companies adopting blockchain strategies and applications into their existing business models if they hope to get ahead of the way of blockchain adoption that is coming. He highlighted both the importance of interoperability and scalability that Cardano’s blockchain provides and how this is crucial in keeping industries from becoming too centralized again. Emurgo provides an advisory service to a rapidly growing number of companies that are planning to do just that, and he referenced YOOSourcing as a great example of the kind of business that, while they are already having an impact on the market, is envisioning what tomorrow’s solutions on blockchain can do to the major issues affecting markets today.

Check out this video of the overall event released by ITBC, a prominent Korean news media outlet.