Blockchain: More Than $40M Raised to Replace Supermarkets

Blockchain: More Than $40M Raised to Replace Supermarkets

A Russian start-up company, INS, now wants to create a platform, using blockchain technology, to revolutionize the everyday purchases like buying groceries or visits to the supermarket. More specifically, it aims to replace supermarkets altogether and make itself the only intermediary between the local manufacturer and the final buyer.

The platform aims at putting an end to the control held by wholesalers and retailers on the pricing of their products by removing them completely from the distribution chain.

The launch of their project is not planned until the end of 2018 and so far, the Russian start-up has not yet made comment as to which blockchain they will be using.

Because of its slower paced transactions, Ethereum technology will likely not be the winner. However, it seems that the INS group is in full negotiations with another company that can set up a more responsive system.

An ICO in Record Time

During the release of one their latest ICOs (Initial Coin Offering), INS managed to earn an impressive 60,000 Ethers. The 60,000 Ethers that they collected have an estimated value of $60 million. Only 4 hours into the offering, they had already earned nearly 30,000 Ethers. This, in turn, allowed them to close their fundraiser in record time.

A New Project is In the Air

The current way that the supermarket system works in most countries is controlled by only a handful of the players.

The implementation of the new platform would serve to simplify the distribution chain by eliminating the wholesalers and retailers. This means that shoppers would be able to order directly from the manufacturer.

The INS Ecosystem group is planning to set up an order processing center. It would be responsible receiving the orders, processing them, storing the goods and then delivering them to the buyers.

The system would rely on blockchain technology for:

  •         Being able to safely make peer-to-peer transactions.

·         Engaging in commercial relationships with a central brokerage entity.

A Win-Win Relationship

The network that would be created would be accessible to all product manufacturers and would allow them a few key benefits such as:

  •         Deciding the actual sales price of their product and modifying it as needed.
  •         Being able to create a custom marketing programs based on their consumers.
  •         Using the platform to get accurate feedback from their customers.

Customers will also be able to benefit from this system by having access to lower prices than what the product would regularly cost at the supermarket.

According to INS, by using this type of system, manufacturers could increase their revenues by up to 17%. And, as for the average consumer, they can expect savings of up to 30%.

Unilever and 6 Other Companies Are Onboard

According to an INS spokesperson, the project has already convinced more than 500 manufacturers of its merits. However, manufacturers are expecting the platform to be fully operational before fulfilling their commitments.

The spokesman also says that already, seven of the world’s most influential companies have already expressed sincere interest in the project.

And the massive, international company Unilever is one of the seven. Currently, the company has a presence in 190 countries globally and works in the field of agriculture and sustainability. They are one of the world’s leading producers of ice cream and tea.

The pilot site for the project can already be tested online.

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