Supply chain management has always been one of the major use-cases targeted by several blockchain projects. Though many projects came close to addressing all the logistical or functional difficulties, very few projects have developed an almost immutable system to address these difficulties, such as the very famous VEChain.
However, the focus of this review today is on Tael, formerly known as WaBi before 2018, which has garnered some attention and focus from the crypto-community because of a host of unique features.
What Is Wabi/Tael?
Tael, or WaBi as it was known at that time, was the brainchild of Techrock (Walimai), a Chinese product authentication firm, with a primary focus on solving the problem of authenticity control. Techrock has developed a unique proprietary authentication technology, running on the Hyperledger blockchain and based on NFC/RFID labels.
The project is currently headed by former McKinsey & Co-consultant, Alex Basrov, who also co-founded the project along with Yaz Belinskiy. Since its launch, the project has amassed a market cap of $10,261,538 USD, currently valued at $0.177616 USD at the time of writing according to coinmarketcap. It has only 4 active trading markets in total, with three in Binance Exchange and one in IDEX.
What Is The Use Case of WABI/TAEL
At first glance, the concept of Tael seems simple and does not appear to be adding anything innovative. However, because of the massive size of the potential market for supply chain solutions, the features Tael brings to the table is definitely worth analysing. In layman’s terms, Tael’s platform provides a system of tracking products efficiently, enabling manufacturers to track all of their products as they make their way through the supply chain. Using blockchain, such data can be stored securely and immutably, giving consumers the confidence of buying products with verified authenticity.
The Problems Faced by Supply Chain Management in South East Asia
- In the current traditional system of supply chain management, the problem of controlling the influx of fake goods has been a lingering issue for quite some time. With globalisation, it has also impacted the global market, with an estimated $500 billion worth of fake goods in circulation today. The influx of fake goods does not just cause financial damage on the parties involved, in the case of certain goods such as medicinal products, baby products, food products etc, fake goods can have dangerous, almost disastrous effects on an unsuspecting consumer.
- The circulation of fraudulent products have been a long standing issue for growing economies such as in China and India. One case highlighted a case where 63 babies were provided with fake baby milk which proved to be fatal eventually. Thus, even if the project does not focus on attracting outside investors, the string of problems faced by massive South Asian markets can easily be solved by the proper implementation of Tael.
How Does Tael Tackle Such Issues?
The team at Tael is focused more on the integration of the end user into the product verification process directly. Tael provides its users with a standalone mobile app, along with an integrated WeChat platform. The company has also launched Taelpay, to promote blockchain based payments and to cultivate a loyalty based system for third party retailers.
- To solve the problem of verifying the authenticity of consumer products, Tael uses patented Radio – Frequency Identification or RFID tags. This tag is put on all the goods that are scheduled to be transported through a designated point of origin, which falls along the supply chain. By using these tags, Tael digitally represents the goods into a cloud containing unique, encrypted, geographical data as well as dynamic code.
- Users can therefore instantly be aware of the status of their product in the supply chain by scanning the aforementioned tags with their phones. This also gives users a confirmation about the authenticity of the product in question along with other relevant information.
- In the case where the seal on the tag gets damaged, the RFID/NFC will not be present in the blockchain network.
Use-cases of Tael (WaBi) Token
The WaBi Tokens from Tael is mainly used to incentivise users to mandatorily scan products, countering the existing voting paradox faced by other similar projects. It thus avoids a scenario where the system does not get updated if the consumers refuse to scan the product.
- WaBi tokens can be acquired by users when they scan Walimai protected products for anti-counterfeit labels.
- WaBi tokens can also be used to purchase items from Techrock retail channels, where users can get discounted prices, improved delivery terms, and other bonuses.
- Users who have loyalty points from Walimai, can exchange their reward points for WaBi token. However, they cannot sell these tokens on exchanges.
- With a firm focus on baby food and other infant care products, Tael focuses on mothers, who form the major part of its customer base. For them, the safety of their infants is the number one priority and are thus willing to pay a premium to verify the authenticity of the products they procure.
The Future of Wabi/TAEL
Since its launch, Tael has already introduced a working product and have aided users in making real-world in-store sales. They also have a separate adoption stats page in their website, highlighting all relevant information related to the token’s adoption. There is also a detailed statistic page available for more than 5000 of their customers, which account for almost 30% of their total token holders.
Because of the competition present in the supply chain sector, Tael has many business ventures and partnerships lined up for the near future. Because they already have a working product, Tael has a slight edge as compared to its competitors, already having 80 products available for tracking, including products from major brands such as HIPP and Blackmores. Tael has already been featured in some major South Asian news outlets since 2017.
The Tael team has future for creating partnerships, primarily with producers of alcohol and baby products, as well as with the pharmaceutical industry. By Q2 of 2019, it aims to expand Tael’s use cases to include loyalty programs, as well as working with insurance companies.
The success of Tael would thus provide security for consumer products which are more susceptible to tampering or counterfeiting. With an already established presence in the Chinese market, Tael certainly provides a promising long-term investment opportunity for new investors.
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