Trade8 Ethereum Blockchain platform based in Dubai UAE, seeks to change the way the retail industry works by developing a digitized economy utilizing Blockchain, AI and IOT (Internet of Things). UNLOCK interviewed Amin Namazi, Founder and CEO of Trade8 to discuss the token based marketplace he wants to build.
According to Namazi, Trade8 by utilizing Blockchain, AI and IOT devices will negate the need for middlemen in the retail business. According to Namazi, “ In most of the economies today between the retailer and the manufacturer there are a lot of resellers, and these resellers effect the profit margins of retailers as well as manufacturers. By using TRADE8 we will aggregate demand from registered SMEs (Small Medium Sized) business utilizing our mobile ordering system directly to retailers.”
The system would be able to streamline the process allowing SMEs to place bulk orders directly with manufacturer and those items would be delivered directly to TRADE8 warehouses across the region. Namazi explains, “As such the supply available will always meet the demand coming in from SMEs.”
Everything at Trade8 is automated from the SME orders, supply chain, and delivery and at point of sale. Utilizing the platform the system would automate purchase orders, invoicing, financial statement tax filings and payments.
Namazi explains, “We utilize the Ethereum Blockchain to build Trade8 decentralized ledger that segregates sensitive business data for each SME and manufacturer. It also securely records asset flow, supply chains, and incorporates digital signature facilitating trade and commerce in a secure and transparent trustworthy platform and is utilized for payments and settlements.”
As for the artificial intelligence built into the TRADE8 platform it is utilized for demand forecasting, pricing and promotion, supply chain planning and execution, market intelligence gathering, automated financial reporting as well as predictive analytics
The concept of TRADE8 started in January of 2019. Soon after the startup raised 150,000 Euros, and started testing the web portal. TRADE8 worked closely with Microsoft and launched its ICO in December of that year. Since then TRADE8 launched its beta version and in July had over 2000 SMEs on its platform with 2.5 million active users as per their website. By January 2021 TRADE8 hopes to achieve 1,000,000 traders, 150 million transactions, and 150,000,000 active users.
Namazi discusses how TRADE8 utilizes 4G network and its IOT devices to track the products and better organize the retail business. As he explains, “ We handle the entire backend process utilizing our application be it accounting, auditing, marketing, procurement, ecommerce and logistics including financing and supply chain. When we utilize blockchain, AI and the IOT devices, these retailers no longer need to have an inventory to manage.”
As for the cost Namazi explains, “We are offering pay for usage. While the devices we use cost around 300 Euros, SMEs pay a subscription fee of 100 Euros to utilize our platform as well as data connection and the device.” TRADE8 is also offering a banking and debit card issuing platform that issues prepaid cards for SMEs and their clients that can be used for crypto and fiat currency payments in one digital wallet.
Namazi also explains how utilizing the TRADE8 marketplace not only saves costs but also increases profitability for SMEs and the entire ecosystem. He states, “We carried out a study for Dubai UAE to see how our project would affect profit margins and revenues, we found that with 2% market share, and only 0.3% profit per transaction, profit margins would increase by 4.8 million UAE Dirhams in first year alone. The data collected could also be used for statistic centers, government, and others.”
In some instances utilizing data from the platform TRADE8 could help retail stores find out what is a demanded product in their area and procure them on consignment basis boosting their income up to 300%.