Having gold, property, equipment, stocks etc., we believe that we have some economic assets. But have you ever thought about farmers having their livestock such as their cows, buffalos, goats etc.? Livestock is an integral part of the greatest enterprise on earth – small-scale agriculture. There are more than 570 million farms worldwide, most of which are small and family-operated. These smallholder farmers rely on seasonal agricultural production for their livelihoods. Approximately 70% of the global food production comes from small-scale agriculture.
Despite the smallholders are a driving force in feeding the world, no other enterprise supports the livelihoods of as many people.
Due to the seasonal and volatile nature of agriculture, financial service providers face liquidity management and concentration challenges due to covariant risks. For example, farmers in the same area generally borrow at the same time and often engage in the same activities, and are therefore exposed to the same risks. The economic value of their physical asset such as livestock is not recognized as ‘capital’ in the financial economy.
‘Dead capital’ exists because we have forgotten that converting a physical asset such as livestock to generate capital – for example, using the cow to borrow money to manage cash outflows and inflows during times of volatile weather and markets – requires an extremely complex process. The problem of ‘dead capital’ leaves the smallholders in an unfortunate position of low financial capability. Without access to formal financial services, they are subjected to higher costs of borrowing as providers often require greater incentives to offer them credit.
The ‘poor’ are much richer than they think. Sentinel Chain provides solution to unlock their economic potential.
Sentinel Chain is the World’s First Global Marketplace for Financial Inclusion Services. There are two main existing problems that Sentinel Chain solves in order to allow asset tokenization of livestock:
- The creation of a process that transforms livestock from ‘dead capital’ to a fungible asset with a transparent and clearly defined value.
- The creation of an open and transparent marketplace that connects the unbanked to the liquidity pool of global financial players.
The mutual creation of livestock insurance and the registration of livestock provenance on blockchain provide a new opportunity: the real possibility of accepting livestock as ‘collateral’ for loans. Sentinal Chain will revolutionize financial access by unlocking the true economic capital of the unbanked.
What is Sentinel Chain? What does it do?
The Sentinel Chain is the world’s first global B2B marketplace platform for financial inclusion services based on the use of livestock as collaterals. It has been designed with the specific purpose of creating a low-cost cross-border financial infrastructure connecting the isolated unbanked with limited access to formal financial services to a global network of financial providers.
The Sentinel Chain is a consortium blockchain that operates within decentralized governance and is connected to multiple CrossPay Blockchains. In doing so, the Sentinel Chain and the CrossPay Blockchains creates a hub-and-spoke ecosystem specifically designed to provide a low-cost cross-border financial infrastructure. Such an infrastructure will provide liquidity to the local unbanked population via an international network of financial providers.
Sentinel Chain ICO Review and Analysis
- Understanding point of view using explainer video towards project application
- Good user interface
ICO & Token Economics
|Total Token Supply||500,000,000 SENC|
|SENC Sale||Based on Proof-of-Support* [22-26 February, 2018]|
25% Bonus + 3 Month Lockup
|Crowd Sale||TBA [March, 2018]|
|Token Release Date||3 Days before lisiting|
|Country Excluded||USA, China|
Proof of Support: Every earlier supporter who successfully registered on whitelisting date, they have $100 contribution limit. In order to increase these limit Sentinel Chain has introduced Proof-of-Support which means by educating people about Sentinel Chain, you can increase the contribution limit. Know more about proof of support.
This is a unique idea that team representing and the team have shown rapid progress through product development. There is much hype due to strong partners and investors aligned with it. However, Adoption by both financial institutions and farmers is somehow considered as a risk. The success of Sentinel Chain project will likely to be judged by its pilot program.