Promoting Greater Transparency Through Blockchain Technology
Safeguarding the Transparency of Shipping & Freight Indices
Introducing Oceanus Decentralized Trusted Index- a benchmark for the price of moving the major raw materials by sea
Oceanus is a community-driven decentralized benchmark for the price of moving the major raw materials by sea.
Product and Platform Design
In contrast to our competitors our blockchain framework counters the inefficiencies relating to accountability, accuracy, and transparency in existing freight indices.
Oceanus will position as the solely public-verifiable index, which eliminates the risk arising from market expert approximations
One of the most dominant players in the industry is the Baltic Exchange and serves as the leading source of information in the maritime industry used by shipbrokers, owners & operators, traders, financiers and charterers as a reliable and independent view of the dry and tanker markets.
Although there are numerous ports and shipping routes through which ships travel to transfer cargo from point A to point B, for calculating BDI only 22 major shipping routes are considered therefore it doesn’t consider any secondary routes when providing the index.
In essence, this review process has been integrated as a monitoring mechanism to safeguard the authenticity of a metric such as the BDI because its figures are what could be termed as ‘market expert approximations’, at best. Even though, this aspect raises a question about the authenticity of such metrics, the BDI ensures that its panelists exhibit absolute compliance to the guidelines which have been established for them and that they have considered all relevant factors when sending in their data to the platform.
A decentralized trusted index such as Oceanus is the ultimate answer to all the aforementioned shortcomings of existing freight indices based on the following considerations:
How Blockchain will restore trust and eliminate challenges arise from “Market Expert Approximations”
Blockchain technology enables full transparency while allowing for strong security and privacy for the individual users. When it comes to large sets of information, a manual supervisory process constantly leaves the possibility of human error and allows for mistrust and unreliability to settle in. The innovative role of blockchain technology holds the power to positively transform the industry forever. The premise of a framework which counters the inefficiencies related to accountability, accuracy and transparency in existing shipping and freight indices is within the Oceanus ecosystem.
- Oceanus will act as a platform where shipbrokers will be able to establish their own virtual identities which will be guarded safely and also frequently checked for validity and authenticity of the submitted results.
- By using the Oceanus platform, the shipbrokers will be expected to log their results inside the portal, this way providing information with regards to the number of contracts that have been fulfilled in a day. Rather than relying on manual review, the system uses its automatic mechanism to check the information reliability and automatically removes from the portal users found to act in violation of the platforms’ terms and conditions. This will streamline the review process rather than making it time-consuming, tedious and based upon subjective judgement.
- Shipbrokers will receive remuneration for this daily task by receiving OCEAN tokens, that they can use within the Oceanus marketplace or other decentralized apps developed by the Oceanus ecosystem. In case they get caught submitting inaccurate data the partnership will be immediately terminated and they will not have the opportunity to participate in the future composition of the index.
- In order to enhance the trustworthiness of the index, critical information such as method for index compilation and frequency of shipbrokers will be publicly available to users- all data except the identity will be saved on the blockchain- any interested party will be able to view the number of submissions, the fluctuation between contracts and the differences between various geographical areas.
- The blockchain powered platform will operate in accordance with an algorithm that also includes smaller cargoes, further improving the reliability and accuracy of the index.
The development and deployment of the algorithm will be finalized by January 2020 after consulting at least 100 top maritime professionals, data scientists, digital freight marketplaces, shipbrokers, ship-owners and manufacturing corporations.
How Oceanus Index will be calculated
Manual mechanisms of tracking critical shipping data and monitoring the information supplied by brokers through rigid procedures are not completely effective and can contribute to inconsistencies. The review process following data submission in the case of traditional freight indices has a high chance of being inaccurate. However, with Oceanus, verified providers will have the ability to submit information for market analysis which will then be stamped for authenticity through electronic control mechanisms.The big vision, is those data to spring automatically by the bookings from our decentralized fixing marketplace- along other third-party electronic marketplaces, which will connect through our ledger with API integrations.
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Join us on our way to becoming the #1 Community-Driven Rate Benchmarking and Liquidity Layer for the Ocean Freight Markets. The program is ideal for Shipbrokers and Shipping Professionals which are looking to position themselves as Leaders in the Blockchain technological evolution in the shipping industry.