We’ve discussed several recent emerging themes on our site when it comes to new crypto projects and token sales. They usually combine an existing industry with blockchain/crypto. If done right, this can help the project gain traction inside the industry. Having a crypto token, again if done right, can prove to create powerful incentive structures inside traditional industries. We’ve talked about projects ranging from data to energy to autonomous vehicles.
Today, we’ll talk about SyncFab, a new crypto project related to hardware manufacturing and supply chain.
Before we dive deeper, let’s understand the lay of the land a bit. Manufacturing and supply chains are incredibly large industries worth trillions of dollars in value around the world. In a way, they are what makes the world tick. However, there are many inefficiencies in the system, and a transparent ledger that multiple parties in the supply chain can trust can be a huge win. This is why blockchains and supply chains in general are the hot topic and talk of the town at the moment.
In addition, manufacturing is special in that there are just too many players in the market. This causes a lot of middle men in the system as well. Crypto has the power to connect people without the middle men, since you can both trust the blockchain instead of having to establish mutual trust, which can be expensive. The blockchain therefore acts as a trusted intermediary but without taking the obscene fees. Therefore, crypto can connect the various players in the manufacturing process as a marketplace and make the process more efficient. Of course, it goes without saying that the token design and economics need to make sense.
The Hardware Marketplace
SyncFab is focused fair and square on the hardware marketplace. This generally includes both Hardware Innovators and Hardware Manufacturers. To really understand how the SyncFab marketplace is set up, consider an example of a Silicon Valley hardware startup that has raised a lot of money from investors. Now what?
They will likely need to design and the prototype their project. It is very hard to do so in the United States, which is generally lacking in the type of hardware manufacturing. They team will likely need to get in touch with some Chinese manufacturers in areas like the Shenzhen. The hardware manufacturers in Shenzhen in turn are looking for customers like this American startup to sell to. How do these parties find each other? Simple – through SyncFab!
The Silicon Valley startup can connect with a variety of vetted players in the Chinese market, while the Chinese manufacturers can find new customers and invoice and guarantee payment through smart contracts on the blockchain. This also lets them set their own terms, encoded in the smart contract itself, which provides them with more flexibility than other methods.
The MFG Token
The native token of the SyncFab network is the MFG token. It is a regular ERC20 token built on Ethereum. This is a utility token on the network with several features and characteristics. Since the team is building a two-sided marketplace which can suffer from lack of network effects, the MFG token is used to create economic incentives to help get both parties on to the platform. Other forms of incentivization are also planned for the MFG token, such as getting faster quotes from the manufacturers. Essentially, the token can be used to create incentives that benefit the entire marketplace.
The payments happen using the MFG token so it can be easily controlled with the help of smart contracts. Buyers, for example, can put forth their MFG in a smart contract, so the sellers are more likely to deal with them.
Photo Credit: TheLeadSA