RAW Coin – A Joint Venture Between Wirecard And Datarella

Providing seamless B2B payments by connecting state-of-the-art payments infrastructure from Wirecard with battle-proven blockchain technology from Datarella.

Earlier this year, Datarella and Wirecard AG started a collaboration around a couple of blockchain projects. One of them was RAW coin, the trading of commodities made more efficient through the usage of blockchain.

We started by a thorough analysis of various commodity supply and trade chains, which led us to find the following challenges of supply chains:

  • rising pressure from global competition
  • many intermediaries and complex governance structures
  • the end-consumer is demanding ever-higher levels of transparency
  • struggle for supply chain stakeholders to maintain an adequate overview of their networks and the supply costs associated
  • difficulty to ensure the quality and integrity of raw materials

We decided to narrow the PoC down to one specific use case, namely coffee beans. The reason for this is not simply that we’re huge fans of (good) coffee, but actually, coffee is the second most sought after commodity after crude oil, globally. It has a trading volume of $100B per year and is grown in 50 countries (in some of which Wirecard offers financial services). Finally, the coffee supply chain has a large number of middle men and intermediaries adding marginal value but capturing a large amount of the end-price paid by consumers.

The coffee supply chain as it looks currently.

The basic idea of RAW.coin is to digitise trading mechanisms and replace middlemen. As a larger vision, we aim to establish the RAW.coin network to become the ecosystem for supply chains, ensuring the origin, quality, compliance and proper handling of items tracked by the network.

What the solution does is to connect the Producer and the Importer while providing a marketplace where any commodities can be traded. It’s based on Ethereum, using smart contracts and a modern decentralised architecture. We implemented smart contracts to represent the terms and conditions of the network as well as enforcing them at the same time through automation. Additionally, we integrated with Wirecard to provide truly seamless B2B payments and fiat interactions. All transactions are done using the cryptocurrency RAW, but which can be immediately exchanged into fiat using the Wirecard Gateway API.

The Product Journey of RAW.coin.

This is an actual screenshot of the current product:

RAW.coin as an application, prom the point of view of a Producer.

We are currently inquiring into the best way to scale up and apply it to other commodities and in which markets. If you wish to learn more, tweet us at @datarella or contact us!

The biggest thing in tech 2015-2025?

From time to time we contemplate about which developments, movements or innovations are those that really matter, and that make this frequently mentioned difference. The results of these intellectual games must be subjective and are generated from a uniquely individual perspective. Things get fascinating, though, if you’re convinced that a specific development not only qualifies as your personal No 1 but should be on many people’s A-list. 

Speaking of technology, my personal No 1 which back in 2009 was ‚Apps’, since 2015 is „Blockchain“. Beside developments such as VR and AR that certainly will honour their promises, the blockchain will fundamentally change the way we use the internet. You can regard it as a layer on top of the internet which allows a completely different approach to transactions – i.e. the end-user perspective – and supply chains – i.e. B2B perspective.

Without summing up and repeating all aspects of a blockchain, let’s focus on just one aspect (which, by the way, is the only reason for using  a blockchain, anyway) – the automated consensus made possible by smart contracts. A smart contract is an algorithm defining and executing a set of rules, i.e. without an additional notary service deciding upon whether all contracting parties comply with all rules. Now, without knowing the technical details behind smart contracts, just ask yourself: how many manually executed processes immediately pop up in your mind that could be substituted by an automated process that minimizes time and costs.

VR and AR have been around for years now. Many companies have been founded, many have been shut down. From my perspective, both, AI and AR, need new use cases and new hardware  to demonstrate their raisons d’être. That’s why it takes so long until they can really demonstrate their added value.

Don’t get me wrong – I can see the sexiness of many VR and AR prototypes. But, still, our world is heading towards automated processes; i.e. automatisations of already existing processes. And here the blockchain comes into play: it’s the great enabler of this global development. That’s why I hereby submit that in 2025, the blockchain will be regarded as the biggest development in technology of the last 10 years.

Comments?

PS: This posts reflects my personal view which is not necessarily congruent with the Datarella team member’s

Know And Speak To Your Customer Through The IoT

Equipped with sensors and microchips, ever more of objects can communicate, with each other and with human beings – the Internet of Things and Humans is born. Even washing powder is set to become smart through attached sensors on its packaging that detects when the product is being used, and that communicates with readers like smartphones when scanned. From today’s 5 billion to 21 billion by 2020, the number of wirelessly connected things will increase. 

Who will profit from the Internet of Things – or IoT – most?
Let’s look at the obvious applications, first: Stock-keeping and supply-chain management processes will have implemented technologies making objects communicating with each other, thus enabling businesses to follow the progress of their products from factories to shops to end-consumers. Espresso beans will tell baristas about the best temperature to keep them in stock. Batteries will inform their owners when reaching the last phase of their power-providing lives.
From our perspective, however, the biggest potential lies in customer relations. Brands are realizing that the best way to sell their products is to build personal relations with customers rather than to spend lavishly on marketing. Until today, many brands come only second behind retailers with regards to communication to their customers. Often, it’s the retailer who knows the customers’ preferences best, and who is able to retain them through loyalty schemes. Ask yourself: where do you buy your stuff? Online retailers are the ones understanding their customers best, often they have the complete customer journey available.

Speak to your customer
Now it becomes cheaper to add sensors and microchips to products, and to connect them to the internet. The direct result of the IoT is a huge influx of customer or end-user data. Whereas nobody at manufacturers and brands had to – or better: was able to – gather data of actual customer behavior so far, there now arrives Big Data describing everything these companies have ever wanted to know. In theory, this data will help them develop their products and services more rapidly, fix any bugs more quickly and tailor products better to their end-users’ needs.

In practice, the gigantic flood of data may imply significant structural changes for manufacturers: is the IT infrastructure set to cope with Big Data? Is the IT personnel eqipped with the necessary knowledge amd experience to handle data sampling and dara storage correctly? Are there adequate in-house resources to munge and analyze the data? And, after all, will anybody visualize and instrumentalize the data in a meaningful way? Sure, there already are best practices regarding individual steps of this Big Data process. And for each part of the process, there are tools that can be used a software-as-a-service. But it`s a long way from data sampling to a smoothly managed customer relation through objects.

A new era of competition
Managing and optimizing the company’s own customer relations through the IoT is just one part of the equation: when retailers start a direct communication with their end-users, retailers won’t passively stand on the sidelines. They will fight back trying to defend their position of being “first-to-the-customer’. And on the operative level, retailers have a big advantage: they have always been the ones with a direct contact to the customer. They know their customers (or at least they should). Everybody who switched from working in a company without direct contact to the customer to an end-user shop has experienced a cultural clash: you won’t imagine the expectations of a typical end-user – i.e. ourselves. Let alone all additional privacy and cyber-security issues.

That said, the IoT offers manufacturers the biggest opportunity since the industrialization. They can understand and learn from their customers. They can even partner with them. But first they have to do their homework and provide all the needed resources in IT infrastructure, processes, and human resources.