POSTERIOR TECH
At FairChain we love tech. We think that the technological revolution of the past decades can enable the “business of the future” to create a competitive advantage because they are more adaptable to change.
Although we love technology, we are also very aware that technology will be a means to an end and that technology is not the goal.
THE BIGGEST LIE DETECTOR
Blockchain provides a reliable and transparent system for tracking every single transaction in the value chain, right down to what smallholder farmers are paid and when. What’s more, it shifts value to where it belongs, facilitating efficient digital payment to directly the farmer, no more middlemen. Blockchain is a giant step towards fairness. It is decentralized, unalterable and publicly available.
Blockchain makes shared value chains and inclusive business model possible.
FOLLOW THE COFFEE
We are about to embark on a new coffee venture by introducing Blockchain technology to our FairChain smallholder farmers in Limu, Ethiopia.
BlockChain will be key in our ambition to drive value to the farmers, give them acces to credit and work towards a living Income.
USING BLOCKCHAIN TO CREATE FAIRCHAIN COFFEE
We started with coffee, because global coffee production is notoriously complex and involves countless middlemen, each taking a piece of the pie along the way. Coffee farmers and producing economies are always on the short end of the stick. Currently, only 2% of the value of every cup of coffee ends up in the pockets of the coffee producers. This is because Big Coffee buys low and sells high. FairChain coffee buys high and sells fair. It’s a completely different mindset that radically impacts the countless communities in which your coffee beans are grown.
Besides, coffee is a powerful place to start with positive change. As the second most valuable commodity in the developing world (oil is first), coffee’s global value exceeds even that of gold. Which is to say, any shift towards the better, even if that shift can be measured in cents, has a profound effect.
BLOCKCHAIN REVOLUTION
Blockchain promotes honesty and radical transparency, and connects our farmers and consumers like nothing ever before. Put lightly, blockchain has the potential to turn the global coffee industry on its head.
Which is why the FairChain Foundation is working with KrypC, a pioneering developer of technologies that streamlining critical supply chains in emerging economies. Our partnership with KrypC makes Moyee the first European coffee maker to introduce fully blockchain-traceable coffee.
Moyee’s FairChain coffee is roasted locally, in Addis Ababa, Ethiopia. For Ethiopians, this is entirely new. They’ve never been involved in the valued added side of the business. Our Addis Ababa roaster uses the latest western industrial technologies, but in Ethiopia and run by Ethiopians. Working together with leading universities in the Netherlands and Ethiopia, we’re educating a new generation of Ethiopian smallholders, entrepreneurs and roasters on how to turn a profit with their most precious resource: coffee. The knowledge we share and the local supply chains we establish lead directly to higher living incomes, urban employment, industrialization, investments, and pure, net profits in Ethiopia. This isn’t aid, but trade. Not pennies, but an entire ecosystem of value adding activities that will put more money in the pockets of Ethiopians.
Besides, coffee is a powerful place to start with positive change. As the second most valuable commodity in the developing world (oil is first), coffee’s global value exceeds even that of gold. Which is to say, any shift towards the better, even if that shift can be measured in cents, has a profound effect.
FAIRCHAIN x BLOCKCHAIN
Blockchain-traceability is the missing link in our FairChain revolution. The collaboration between the FairChain Foundation and KrypC makes Moyee Coffee the first European coffee company to benefit from blockchain technology. Proving more than ever that coffee is capable of leading the way to a more honest, fairer society.
The KrypC blockchain platform gives all stakeholders – farmers, roasters, and consumers – to access data across the entirety of the supply chain. This data enables complete analysis of the supply chain to identify supply chain efficiencies. For consumers, KrypC provides unprecedented levels of transparency around origin and quality; and allowing, for the first time, a coffee drinker in Europe to pull up this data and verify exactly where her coffee was sourced.
At the point of collection, the KrypC platform instantaneously creates cryptotokens, which represents the value of the commodity. As the commodity flows through the entire supply chain, new tokens are automatically created. These tokens increase in value as the beans move through the supply chain. This step-by-step process makes the entire chain transparent, and makes sharing the value added easier.
It was KrypC’s tokenization technology that attracted the FairChain Foundation in the first place. Currently patent-pending, this technology promises drastic reductions in the transaction costs of global commodities. KrypC’s tokens can be used for inventory valuation and , and to streamline the certification processes by reducing paperwork and physical inspectors, which can cost up to €0.80 per a pound of coffee. The KrypC platform provides fully transparency and immutability, which can eliminate this costly part of the supply chain.
Blockchain literally connects you with our farmers. With blockchain, a notoriously opaque coffee industry suddenly has no more secrets. And by getting rid of all the unnecessary middlemen, our farmers receive more money. It is beautifully wonderfully perfect.
