Blockshipping is a Scandinavian company based in Copenhagen, Denmark. Blockshipping is developing The Global Shared Container Platform (GSCP) that will enable a savings potential for the global container industry at the tune of USD 5.7 billion per year by smarter handling of intermodal freight containers. Blockshipping was founded in 2017 by Danish Peter Ludvigsen, who has 40 years of experience from key positions in international container shipping.
The senior team of Blockshipping consists of:
- Peter Ludvigsen, CEO & Founder – Peter founded Blockshipping ApS in 2017. He has a career spanning more than three decades at Maersk Line, UASC, INTTRA and other leading companies in the ocean shipping and ports industry.
- Christian Gyntelberg, COO – Christian has over 20 years of experience as an IT management consultant with Senior Management experience from several positions in A.P. Møller and DHL. He is a Shipping and Logistics process expert with extensive hands-on experience in leading both commercial and operational departments.
- Jesper Vedelsby, CTO – Jesper has more than 20 years of experience as a CTO and technical architect within the shipping, airline and energy sectors. Jesper has a wealth of senior executive experience as CIO, Enterprise Architect and senior project manager, across three continents – counting large container terminals, global shipping lines, international airports and telecommunications companies among the clients.
B. The GSCP Platform
Blockshipping’s Global Shared Container Platform (GSCP) is designed to make key processes in the global handling of containers significantly more efficient and thereby solve some of the most important problems in the container shipping industry today. First and foremost, the purpose of the GSCP platform is to provide a complete blockchain enabled container asset registry (like a ship register) where the full global inventory of containers (approx. 27 million units) are registered along with real-time locations of every single container around the world. The goal within 3-4 years is to achieve a 60% market coverage with 16 million container units in the GSCP blockchain registry. The GSCP platform will enable a savings potential for the global container industry of at least USD 5.7bn per year. Furthermore, the platform is expected to reduce the global CO2 emission by at least 4.6m tons yearly (please see our white paper for more details).
- Become the primary blockchain registry and operational payments platform for the global container fleet within 2 years
- Achieve 60% market coverage of the global container registry with 16 M container units in the GSCP blockchain registry within 3-4 years.
The blockchain based GSCP platform will enable a wide range of players like container Carriers, Beneficial Cargo Owners (BCO), terminal operators, port authorities, leasing companies, trucking companies, freight forwarders, and NVOCCs (Non-Vessel Operating Container Carrier) to achieve cost savings based on real-time information exchange. The technology offers real-time visibility and blockchain enabled smart contracts that automate processes and payments between parties. This enables all parties to significantly reduce internal control/admin functions (costs).
In the container shipping industry today, only a few other companies besides Blockshipping are developing blockchain-based solutions. One is the Hong Kong based company 300Cubits, another is a project called CargoX, and a third is the Maersk Line and IBM joint venture. None of these has the same focus as Blockshipping and they are not considered competitors to Blockshipping and the GSCP platform. Besides, a number of other companies are offering solutions that have some functional overlap with the Blockshipping solution, but none of these are based on blockchain and smart contracts and none of them is offering a solution as complete as Blockshipping’s platform, they are only able to match smaller parts of Blockshipping’s proposition.
With the purpose of obtaining an optimal combination of high scalability, undisputed security, maximum control, privacy & flexibility, and low transactions and energy costs the GSCP platform will be built on a private (permissioned) blockchain.
Do we really need new systems, solutions, or platforms in the shipping industry – isn’t the industry already highly efficient?
The development of the intermodal freight container in the 1950s was a revolution. But despite the huge success of the container, it has become clear over the years that in the complex process of transporting freight around the world, there are still plenty of opportunities to streamline a wide range of processes. And with the advent and maturation of blockchain technology, we are now facing the beginning of a new era, which may turn out to be as revolutionary as the era that Mclean began with the introduction of the intermodal metal container.
Execution is everything – does Blockshipping have the skills and the capacity to realise the idea of the GSCP platform?
Obviously, we believe that The Global Shared Container Platform should and will be developed and launched by Blockshipping, and for that purpose we have built up an incredibly strong team of highly competent people with either long experience in key positions in the container shipping industry or with expert knowledge and genuine hands on experience with blockchain technology or smart sensor technology.
C. The GSCP ICO
Blockshipping is launching the first Nordic shipping related ICO (Initial Coin Offering), the first ICO ever in Denmark, and the first ICO to be based on the new European ICO Standards framework – EICOS. The GSCP platform is already funded by private angels, and The Danish Maritime Fund (www.dendanskemaritimefond.dk), and an ICO is a natural supplementary funding method for a company like Blockshipping developing a blockchain based platform like the GSCP platform.
The cap is based on careful calculations of the costs of 1) a full development of the GSCP platform during the next three-year period, and 2) the running and maintenance costs of the platform in the initial period before reaching break-even, and 3) costs of marketing the platform across the shipping industry to obtain the necessary critical mass of users in due time. Even though USD 24m is a large amount of money we can assure everyone that all the money will be used for purposes relevant to the GSCP platform, and that Blockshipping will act transparently regarding the use of the funds collected during the ICO.
The GSCP platform issues two tokens: The internal Container Platform Token (CPT), which is a utility token, and the external dividend token Container Crypto Coin (CCC) issued on the global Ethereum blockchain for the ICO.
The internal CPT token will be used by the industry players when utilising the platform for clearing and settlement of transactions between them. These transactions will relate to a variety of services and fees like ‘capital purchase’, ‘container exchange fees’, ‘terminal and depot handling costs’, and ‘fees collected by carriers’.
A percentage of the revenue generated from the transaction fees on the GSCP platform will go to a Revenue Share Pool. Through an innovative revenue sharing model, the funds held in the Revenue Share Pool will be passed on to the owners of the CCC tokens in a way that reward both short-term and long-term token owners.
A total of 50.000.000 CCC Tokens will be issued. The 50.000.000 is a hard cap and no further CCC tokens will be issued at any time in the future.
The CCC will be allocated as follows:
- Pre-sale: 10%
- Public Sale: 70%
- Bonus for pre-sale: 5%
- Advisors, Media and Partners: 10%
- Founders: 5%
Due to highly volatile prices of the two main crypto currencies we have chosen to lock in the price of each token to 0.62 USD. It will be possible to contribute to the ICO using Ether (ETH), bitcoin (BTC) and bank transfers (USD & EUR).
No! A dedicated website will be launched to handle the public token sale and KYC registration process. To give a fair chance for everyone to purchase tokens, allow payment in both ETH, BTC, USD and EUR and to avoid the gigantic transfer fees sometimes seen during pure Ethereum executed ICOs – we will not be using one central wallet to accept contributions. Instead based on the chosen mean of payment we will create an individual and dedicated transfer option for each buyer and allow a certain time for the buyer to execute the transfer. If the buyer does not perform the payment in this time frame, then the CCC will be released back in the sales pool.
In most ICOs so far it has not been possible to send donations from exchanges. But for the GSCP ICO we have designed a highly user friendly process that enable participants to decide whether they want to donate Ether (Eth) or bitcoin (BTC) via an exchange or via a private wallet. Or if they prefer to make their donations via bank transfers (USD or EUR).
As an ERC-20 compliant token deployed on the Ethereum blockchain CCC will be tradeable on both centralized exchanges (CEX) and decentralized exchanges (DEX). The decision on which exchange the CCC initially will be listed will first be finalized and published after the end of the ICO for GSCP to get the best conditions for performing the listing of CCC.
We are favouring exchanges that:
- will commit to further distribute the airdropped Revenue Share Token to its account holders holding CCC in their exchange wallets.
- has a good reputation
- has a sizeable trading volume and user base
- has a fair fee structure.
The idea of issuing two tokens came from watching what happens when utility tokens become popular on the secondary market and how that tends to invalidate their viability as utility tokens for their originally intended purposes.
Transaction prices on the Ethereum platform have gone up significantly as a logical consequence of the rise of the value of Ether. Bitcoin has become completely useless as a means of payments and is now in practice solely a digital asset class, even though Satoshi Nakamoto’s original idea was to create “a purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.”
To avoid a situation where a successful reception on the market of a GSCP token would harm its ability to perform internally on the GSCP platform we realised that we needed to make a split into two separated GSCP tokens each with a clear and well-defined role in the GSCP ecosystem.
The internal and external tokens will be separated, but in an asymmetrical uni- directional way so that the external public traded token CCC cannot affect the stability and price of the internal token CPT, but the internal token can and should support the value of the external token by sharing revenue generated by the transaction volume in the internal system on the GSCP platform with the external token owners.
We believe that the market will welcome CCC for at least three reasons:
- To reward the buyers of the CCC by sharing part of the gross revenue of the GSCP platform, we have designed a Revenue Sharing Model. Initially 25% of the gross revenue from transaction fees paid in CPT on the GSCP will be distributed to CCC token owners.
- Additionally, to support the CCC in the free market before the launch of the platform a major part of the collected funds will be locked in a Market Maker fund. This means that IF the price at any time after the closing of the ICO but before the first phase of the solution is launched should fall to a level below 33% of the introduction/starting price, then everyone who have bought CCCs during the ICO will be able to sell back their coins to Blockshipping. In that case Blockshipping will pay back from the Market Maker Fund 33% of the introduction price.
- Even though the CCC as a starting point is not a typical utility coin, we do have a couple of innovative ideas and concepts going forward where we can see the possibility to open up and use the CCC for certain functions on the GSCP platform and thus enabling CCC owners to actively be able to get more value for their CCC.
The Market Maker Fund offers everyone who buys CCC coins during the ICO a financial safety net, which is a unique feature on the crypto market (please read more about this in chapter 5 of the white paper).
The internal GSCP token is a utility token created with the purpose of enabling the participants on the GSCP platform to handle transactions (clearing and settlement) in a cheap and efficient way (please read more in chapter 5.3.1 of our white paper).
Why is it a good idea to issue a new token for clearing and settlement between the users of the platform? Why not just use fiat-currencies – USD or EUR – for transactions on the platform?
The internal utility token CPT – or Container Platform Token – should be understood basically as an abstract representation of a US dollar (USD) that allows the users of the platform to avoid having to settle every single transaction in USD through the normal banking channels, avoiding the hassle and cost of taking USD in and out many times daily, and avoid paying the fees that goes with transferring of dollars across borders (please read more in chapter 5.3.1 of our white paper).
Which - and how many - types of transactions should the CPTs be used for on the platform? Could you give some examples and publish a list?
A list of examples is published in our white paper – please see p. 29.
The reason for pegging the CPT to the USD is that the GSCP will be a heavily interconnected platform and most of the touch points will be using USD as currency to settle payment for services as this is the preferred currency in the shipping industry.
By issuing a token to represent an USD for the internal transfers on GSCP instead of just keeping the balances in USD we are able to build-in certain attributes in to the currency itself. An example of this is the revenue share pool described in chapter 5.5.3 of our white paper.
Are there any other advantages by using a crypto token on a blockchain instead of paying for transaction with fiat? Is it possible to make faster transactions – real-time transactions? Is it possible to avoid the costs and the waste of time that we know from corresponding banking today?
Yes, there are several advantages by using a token on a blockchain:
- Because a blockchain system cannot be tampered with, the participants of the platform do not have to trust either each other or a bank or a central system operator.
- In a blockchain based system all transactions can be executed as real-time or close to real-time transactions.
- There are no geographical limitations in a blockchain based system. Participants on the GSCP platform will be able to participate in and make transactions regardless of their geographical location.
- Cross-border transactions within the GSCP blockchain system will not be time-consuming and costly in the way we know it from today’s corresponding banking where a bank transfer may take up to several days to complete and comes with high fees.
To participate in the public sale of the ICO you will have to register on the ICO sales webpage beforehand or during the ICO and go through the KYC process to become approved as a contributor.
After being approved as a contributor, and when the ICO public sale has started, it will be possible to purchase the CCC using Ether, Bitcoins, card payment or bank transfer.
You will have to select the amount you want to contribute, and the corresponding number of tokens will be locked and allocated to you. You will then have a period of time (will vary depending on chosen means of payment) to transfer the funds to complete your purchase.
You can read detailed instructions here for how to perform the transfer of the ether, bitcoins, euro or US dollar. Please note that the minimum buy will be the equivalent of 100 USD.
If you have not performed the transfer in time, then your purchase order will be cancelled and the tokens allocated will be unlocked and put back in the pile to be offered for other contributors.
The ICO sale webpage will be launched after the pre-sale has concluded.
If you choose to contribute using Ether then guidance will be given on how to set gwei and gas limits as part of the purchase process, as the gas price can vary on a daily basis.
Since we will allow some time for Ether transfers to be performed, it will be possible to set lower gas prices than what has been seen at other Ether based ICOs.
Pre-sale tokens are first distributed in the period between the pre-sale is closed and the public sale is opened.
Tokens purchased during the public sale will be distributed continuously as funds are received in the GSCP wallets and bank account.
Ether and bitcoin transfers are cleared automatically.
The transfer of tokens might be slightly delayed if the Ethereum blockchain experiences a high volume of transactions in the same time period.
It will be possible to check the exact status of your purchase order on the ICO sales webpage including whether funds have been received and tokens have been transferred yet.
No. KYC is a pre-requisite for buying tokens in the ICO. Afterwards, it will be possible to buy tokens on an exchange, and KYC might not be needed for this.
Please notice though that in order to be eligible to receive the revenue share of the tokens then KYC for the account holding the CCC is pre-requisite also.
42,500,000 tokens are sold during the ICO and will be circulating after the ICO is closed.
5,000,000 are distributed to Advisors, Media and partners and has no lockup meaning they can circulate after the ICO is closed.
2,500,000 are allocated to founders and employees and will be released 6, 12, 18 and 24 months after the ICO closing date in equal portions ie. 625,000 per time.
It is not standard practise to complete KYC for bounty participants, unless they collect more than 100 CCC and wish to partake in the revenue share.
In such cases, participants will be asked to register an account and complete the KYC procedure.
D. The ICO 2.0 framework
Despite the large potential and the innovative nature of the ICO model, 2017 has clearly shown that since the ICO and cryptocurrency space is – still – almost unregulated, unfortunately it tends to appeal to dubious projects. Thus, to protect the idea of the ICO and make it possible to develop it further going forward, it is crucial to decide on and establish common standards and code of conducts for how to run an ICO.
That is why a group of Danish ICO experts came together in 2017 to develop the ICO 2.0 framework. The group consists of the leading Danish law firm Kammeradvokaten/Poul Schmith (http://en.kammeradvokaten.dk/about-us/) and the leading Nordic Fintech Consulting agency, Norfico (www.norfico.net).
Blockshipping’s GSCP ICO will be the first ever ICO to be based on the new ICO 2.0 framework.
The purpose of ICO 2.0 framework is to increase the quality standards for ICOs making sure that future Danish ICOs:
- are 100% compliant with Danish law,
- aim at the highest standards in terms of security and quality of coding,
- promote openness, transparency, and honesty
- follow a strict code of conduct when it comes to communications and relation building with the ICO stakeholder groups.
The group behind the ICO 2.0 framework is already in a close dialogue with Danish financial regulators (the Danish FSA), but the further ambition is to propagate the message of the ICO 2.0 framework to as many European regulators as possible to help raising awareness and knowledge and to offer the ICO 2.0 framework as a model for ICO regulation across Europe.
By introducing the ICO 2.0 framework the group behind the framework hope to restore the credibility of the ICO idea and establish a brand of trust to be used by credible, high quality ICO projects. The ICO 2.0 brand should be a Danish stamp of approval for high-quality ICO projects going forward.
It seems as if several parties around the world are working on ICO frameworks. How does your framework differentiate, and why is it even relevant?
Our framework is primarily focusing on full compliance with Danish law. But we see it as a good sign for the future of ICOs that more groups around the globe are working on ICO frameworks. Eventually, we might be able to merge some of the ideas and hopefully to inspire the regulatory authorities around the world.