TEL AVIV, Israel, Aug. 7, 2018 /PRNewswire/ -- PAKET Protocol, a blockchain-powered decentralized delivery platform, announced the public launch of its project, which seeks to bring improved efficiency to the delivery industry. Once complete, the PAKET platform will allow anyone from anywhere in the world to ship items quickly and optimally using the trustless nature afforded by the blockchain and smart contract technologies.
The delivery industry is currently dealing with numerous inefficiencies, especially in the last mile delivery. Many of these inefficiencies can be categorized under two themes: cost and capacity crunch (shortage of labor). Estimates show that the e-commerce last mile of delivery could make up to 53 percent of an item's total transportation cost. As the global e-commerce space continues to grow and is expected to reach $4.8 trillion by 2021, these inefficiencies and cost are only going to deepen.
"Overcoming these problems will not only improve deliveries as we know them, but will open the door to new classes of deliveries and an untapped variety of customers, providers and use-cases, creating more opportunities in this already huge market even further," PAKET CEO Oren Gampel said.
While PAKET believes that a decentralized delivery system that allows just about anybody to participate in the ecosystem will improve the logistics space, there is a challenge of establishing trust. Senders who have already trusted the inefficient traditional logistics system need to be able to trust non-traditional courier operator. The inherent nature of blockchain and smart contracts to help establish trust by enforcing a given set of transactional rules solves the problem of trust.
Therefore, PAKET is building a decentralized delivery platform powered by the Stellar platform to bring a significant improvement to the logistics industry. The platform will feature just about anyone or entity interested in participating.
"We offer a mechanism for establishing this trust using a cryptographic token which we call BUL. Our protocol ensures that when Lily (the Launcher of the delivery) sends an item to Rudy (the Recipient) by giving it to Carl (the Courier), her payment is securely held in virtual escrow until Rudi confirms that the package was received, or until a predefined Transfer Deadline passes," PAKET's whitepaper reads.
In this system, only the recipient, Rudy, in this case, can confirm the receipt of the item and it is only after the confirmation of package delivery that the payment is released to Carl. In addition, Lily is protected in that the network enables Lily to require a collateral form for the safe delivery of Lily's item to the virtual escrow before he can accept the transportation of Lily's item. Therefore, if Rudy doesn't receive the package after a predetermined deadline, the system will refund Carl's collateral to Lily in addition to the payment she had committed. Unlike the traditional logistics system, there are no predetermined prices for the transportation of items. The cost, the collateral and the duration of transporting an item are completely decided by market forces.
In addition, the PAKET platform will solve the inefficient route problem by allowing courier providers to pass on packages to as many courier providers and hubs as it would take to establish an efficient route. This is to ensure that the recipient receives the package as quickly as possible. For packages that will be passed on, the courier service with the custody of the package will assume the collateral responsibility. That way, the sender can always be sure that there is some sort of insurance coverage for their packages.
The PAKET platform will also be open to established organizations with interest in the logistics industry. Examples include, but not limited to, courier associations, insurance companies who will commit collateral on behalf of courier services and logistics giants who have already perfected the business of transporting items across continents.
The PAKET project is being built by a team that, between them, has several decades of experience spanning the blockchain technology and cryptocurrency, shared economy, financial and marketing industries. The project has gained endorsement from several industry leaders including Yariv Gilat of First Digital Assets Group, Sebastian Stupurac and Stas Oskin of Wing.ai and many others.
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