E-Crypto News Talks to Sukhi Jutla on the MarketOrders Whitepaper
The Gold and Jewelry industry worldwide received a boost recently. MarketOrders released their whitepaper. The whitepaper explains exactly how its token will disrupt the industry. E-Crypto News caught up with Sukhi Jutla, COO of MarketOrders. Here is what she had to say.
Sukhi Jutla, COO MarketOrders
- Gold, Diamonds, and Jewelry are an interesting industry. What propelled MarketOrders to go into its disruption?
Of all the industries in the world, the jewellery business is one of the most traditional, old-fashioned and most reliant on direct interaction between master craftsmen and merchants. It faces the challenges of both authenticating and proving the provenance of jewellery products. The supply chain is fragmented and opaque, with many transactions conducted offline and in person. This creates friction and slows down the process, leading to slow and inefficient supply chains in a world where consumers demand speed, choice of products and trust. Innovation is much needed!
Jewellery accounts for 47.7% of total gold demand (over 90,000 tonnes) and 88% of this gold jewellery is distributed to consumers through small retailers; this market represents 1 Billion pounds in the UK only and is ripe for disruption!
The Founder, Ram Krishnna Rao, and I, have been involved in the industry for over ten years. We’ve been researching, studying, and getting feedback from professionals and have got to know the challenges they’re facing inside and out. Combined with our finance & technology background, we decided to work on a solution answering the industry’s problems; MarketOrders was born.
MarketOrders’ award-winning B2B platform enables independent retail jewellers to buy gold and diamond jewellery directly and seamlessly from international suppliers. Giving them access to global designs and assured product quality, we aim to provide cheaper prices and faster service using innovative technology.
2. Please tell us briefly how the MarketOrders blockchain ecosystem works.
MarketOrders is developing a blockchain-based marketplace and provenance chain enabling jewelry retailers to source the products they need more efficiently and at better prices directly from manufacturers, thus turning the traditional model upside down by digitising every element of the customer journey.
3. In your opinion, what are the advantages of using Distributed Ledger Technologies (DLTs) in interrupting the Gold, Diamonds, and Jewelry market?
DLTs can be very effective in industries where there is less transparency and countless middlemen operating. In our industry, the gold passes through many different hands, processes, and people in order to be transformed from raw metal into a beautiful finished product. By using DLTs, we can make the process more transparent and efficient for all parties concerned.
4. Your Whitepaper focused on members of the Gold Diamond and Jewelry Value-chain. How do consumers stand to benefit from the MarketOrders ecosystem?
Consumers are becoming more aware of the need to make ethical and sustainable choices. They can benefit by being able to make purchases with confidence that they know where the metal was sourced from and if the people involved in creating this item were treated fairly. It also guarantees them the authenticity of the product in an industry where counterfeit are increasingly common and harder to detect.
5, Please tell us more about the Market Orders Token (MOT). How will it be deployed?
Simply put, using the MOT token means everyone in the ecosystem uses the same form of value transfer (such as a token) that participants can directly trade with one another, cross border, globally.
It will help retailers embrace blockchain technology into their traditional bricks and mortar stores because they will be able to make purchases via MarketOrders’ blockchain-enabled platform and gain numerous benefits such as aggregated orders, hence lower costs, low commissions, as well as discounts and special offers. The token will be accessible on the website and mobile apps.
The MOT token will:
Ensure the highest levels of trust, transparency, integrity and quality because all transactions are recorded on the blockchain.
Quickly verify and execute payments on the blockchain.
Improve efficiency in managing the movement and provenance of diamonds and precious metals.
Enable both retailers and manufacturers to build a reputation by establishing a history of trusted transactions on the MarketOrders network. Bad actors and fraudulent activity on the network would essentially cost the user their reputation and access to the network. Any bad actions would immediately be flagged by the blockchain and blocked.
6. How would the token work?
Each MOT will represent a unit of payment towards jewellery items that can be purchased by retailers on the MarketOrders platform. Both retailers and manufacturers will be incentivised to use the MOT token to pay for and supply products as opposed to fiat as a unit of payment. In this way, the ecosystem will grow and flourish.
Blockchain technology allows for:
All payments to be made with MOT, which are 100% transparent and non-corruptible.
A transparent audit trail of the movement of the physical products along the supply chain.
7. What incentivization strategies does MarketOrders hope to implement for its token? Tell us more about it.
By using the MOT token, manufacturers and retailers will benefit from:
Cheaper prices: Not only does MarketOrders cut out the middleman and offer lower prices than wholesalers, but retailers will receive a discount on their orders when they use tokens to pay.
Better credit terms: Retailers will be able to benefit from extra credit terms when using tokens as opposed to when fiat is used.
Lower transaction costs: Cross–border payment costs will be reduced by up to 95% when tokens are used as retailers will no longer have to deal with hefty bank charges to move funds on an international basis.
Transparent pricing: The majority of transactions are conducted privately offline, which leaves the retailer vulnerable to being charged whatever the middleman thinks he can get away with. By using our online marketplace, pricing becomes more transparent.
Faster payments and order fulfilment: Suppliers will no longer have to wait up to 60 days for payments to clear before they can start to process the order. This means retailer orders can be fulfilled up to 50% faster.
Real-time data: This is available on the orders they place with the manufacturer, as well as on the orders their customers have placed with them. This level of data has not been made available before and can inform critical business decisions.
More efficient and transparent business processes: Digitising and automating ordering and business inventory processes makes the running of jewellery retail stores more efficient and profitable.
Loyalty and rewards: tokens can be used as a way to increase loyalty by rewarding those who use tokens with other benefits, such as discounts and special offers.
8. Will the MarketOrders Ecosystem cater to mineral documentations within its ecosystem (Kimberly Process Certificates, SGS reports, Metallurgy reports and so on)? How will this work?
For this technology to succeed, it is vital that all participants in the ecosystem work together from the same ledger. Therefore, this does mean that to make this system efficient and effective we will need DLTs to be integrated into the other existing processes or to plug those existing processes into a decentralised ledger. Adoption is key and all participants must have an open mind and be open to new and innovative technologies.
9. Please tell us how players within the ecosystem can work with credit (providing and receiving?
DLT will allow for tokens and payments to be processed so participants can send and receive credit much faster than existing processes. DLT can also be used for trade finance and trade invoicing and bring greater efficiencies to these slow processes.
10. Are there plans in the future for MarketOrders to shift its token to an independent blockchain/Distributed Ledger? Please tell us about it.
At this point in time, we will be building our DLT on the Ethereum network as this is currently widely used. Based on how we progress, they will always be an opportunity to create and build our own dedicated blockchain if needed.
11. How does the MarketOrders ecosystem handle the ethical sourcing of minerals? What features are in place to ensure that this will work?
The ecosystem will use smart contracts to ensure ethical sourcing of minerals. For example, payments will only be released if evidence can be provided that ethical and sustainable processes were used.
12. How does delivery verification work in the MarketOrders ecosystem? Please tell us about it.
Smart contract is a key feature of blockchains to track and trace the items using smart senses and chip technology, which digitally tracks every package from source to the end customer.
13. Where do you think the MarketOrders ecosystem will be in the next ten years?
The MarketOrders team is made of ambitious, driven and talented individuals who are determined to make MarketOrders into a successful and scalable business. In the next ten years, we aspire to scale our business internationally and serve retailers not only in the UK, but across Europe. We also aspire to apply our experience and technology to other industries in need of transparency in their supply chain processes, such as transports, health care and electronics.
The blockchain ecosystem, though still young in its potential, is making significant strides in the start-up ecosystem. It is only a matter of time before these technologies start to mature and it is vital that we continue to innovate and foster creativity to solve the issues within this technology to allow it to scale and to make it accessible to all.
No doubt we are entering an exciting new Web 3.0, which will put trust and security at the forefront of the decisions we make. This is why we believe it is important to be part of this process, add to the conversation and embrace this new reality to create and shape the future of tomorrow.