OriginTrail (TRAC) is a project aimed at the supply chain industry and is attempting to solve several common issues through blockchain technology.
There are over 1500 active cryptocurrencies in circulation at the time of writing this article. As the market expands and grows, more and more will keep popping up, and it will become harder to spot the worthwhile coins from the duds.
How can you tell the good from the bad? The most important question is to ask if they’re solving a problem and if they have a practical use.
OriginTrail (TRAC) is attempting to solve a very real problem, in a very large industry. The coin has been active for less than a month, and yet is already starting to make waves and grow a community around it. While it’s still in development, it is already being used even in it’s very early stages.
OriginTrail features in our top cryptocurrencies to watch in 2018.
What is OriginTrail (TRAC)
OriginTrail is a project targeted very specifically at the supply chain industry. It seeks to make the flow of information easier, more adaptable, cheaper, faster and more secure using blockchain technology.
The best way to explain this is to use a very simple example:
A Primary Producer creates a product and sends it out for Processing. It is then moved by Distribution to Warehousing, and finally to the Retailer.
Blockchain technology will allow all five of these entities to check information on a specific shipment in real time. There is no paperwork to get lost, or panic because someone isn’t sure where something is, the system allows for automation of data and entry into the block chain – which, once entered, is secure and cannot be tampered with.
Every party can check on the status of the shipment. GPS data could be included so it can be tracked, for example. As technology evolves, shipments can include sensors that monitor the package in transit – so if you’re a company that specialises in selling fresh fish, you can unquestionably prove to your customers how long the fish has taken to reach them, and most importantly, if it’s been stored at the correct temperature the whole way to ensure its quality.
To ensure that everyone agrees on the data, a consensus system will be employed where the data must be confirmed by two parties.
OriginTrail will harness the power of blockchain technology to provide detailed, real time information about products as they move through the supply chain. Companies that use different computer systems and processes will all be able to interface with the blockchain and its information, so nothing will be lost in translation between systems.
This service will be decentralized which means no one person holds the keys to this data. No one can tamper with it or alter it once it’s been uploaded. This solution also means that it can scale to meet changing demands, and keep costs low.
The project sounds great, but why does it need a cryptocurrency?
The blockchain that OriginTrail will be using is known as the OriginTrail Decentralized Network (ODN). This is the network through which the supply chain data will travel. It is made up of several nodes located all around the world, which are computers running the OriginTrail software.
Companies that wish to use this network for their supply chain needs will have to pay the owners of the nodes Trace tokens, and in return the nodes will then encrypt, handle and distribute their data.
The exact mechanics of the currency hasn’t been fully explained as of yet, but that should be coming in an update at the end of March.
OriginTrail will also operate on the Ethereum blockchain, and so make use of smart contracts to ensure that each transaction is carried out in a trustless system for both parties, ensuring no disagreements or fraud.
As the cryptocurrency market moves forward, we will see the good projects rise and the less good projects fall away. OriginTrail has positioned itself to solve a major industry problem, and is making strides towards making its concept a wide-spread reality.
More detailed information can be found in OriginTrail’s whitepaper.