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FTI Foodtech International Inc. (TSXV:FTI) is researching the potential for blockchain technology business solutions for organizations in the food and barter industries. With a long-term goal of being a key blockchain service provider to these industries, FTI Foodtech has brought on Chris Kitze, and expert in developing application using SafeCash—a secure blockchain network that enables international transactions cryptocurrency transactions— and obtained licenses for remittance technology associated with FLASH coin — a network that was designed to enable the transaction of remittances.
Currently being adopted across a range of industries—including banks and financial —blockchain has seen significant growth in usage since its inception, and its market value is set to reach $7.68 billion by 2022. Cryptocurrencies have also seen an uptick in usage and validation, particularly as increasingly formalized regulatory environments enhance the level of adoption of these crypto coins.
Moving towards its goal of developing and deploying its blockchain technologies on an international scale, FTI is currently in the process of raising $3 million through a private placement. Once raised, these funds will go into the research of blockchain technologies that can be applied in the food and barter industries. The company will also be acquiring 8 million to 9 million FLASH coins, that will contribute to this research.
FTI Foodtech is led by a management team with deep knowledge of and experience in the target markets for the company’s services. To supplement this experience, the company has also engaged a blockchain and technology strategic consultant, Chris Kitze, who is the co-founder of Xoom—a precursor to PayPal—, a past-developer of the SoftKey software and is a current developer of the SafeCash technology. Kitze has a supporting group of engineers that will be contributing to the development of the FTI platforms.
- Researching blockchain technologies to be deployed in food and barter spaces to make transactions and data validation more efficient, secure and transparent
- Licenses for FLASH remittance technology
- Raising $3 million in current private placement; funding to go to research and development initiatives and acquisition of FLASH coins
- Entering growing blockchain industry expected to be worth $7.68 billion by 2022
- 72 percent of company shares held by management, friends and family
Blockchain Across Industries
Having emerged as a foundational technology for cryptocurrencies on which entities across a network verify transactions, blockchain is being incorporated into numerous marketplaces and industries. The distributed ledger technology associated to blockchain provides a more accurate approach to verifying and tracking transactions, and is thus favorably positioned to replace manual database services. Once data in the blockchain is ‘validated’, it cannot be modified without altering all subsequent blocks, making the system secure by design.
According to Research and Markets, the blockchain market is set to grow at a CAGR of 79.69 percent, reaching $7.68 billion by 2022. A recent report from the marketing firm concluded that “demand for distributed ledger technology…increasing demand for simplified business processes, transparency and immutability, faster transactions, and Blockchain-as-a-Service” are the key factors spurring this growth.
In targeting the food and barter industries, FTI is innovatively working towards providing functional blockchain networks to its clients that can support them in effectively tracking and verifying the status of products and transactions.
Access to Blockchain Technologies
The SafeCash blockchain was designed based on Litecoin technology, but with added decentralization and more simplified mining. Supported communally, SafeCash is used as a technology system for banks, merchants and consumers, SafeCash allows users to send and receive money and tokens to anyone with an internet connection and has the ability to process 25,000 transactions per second.
A decentralized and distributed public digital ledger, the SafeCash blockchain hosts records that cannot be changed retroactively. SafeCash also allows for a rapid confirmation of transactions and uses the latest blockchain technology to develop a cryptographically-secure audit trail and permanent transaction record. Its database is managed autonomously through a peer-to-peer network and a distributed timestamping server.
FLASH remittance technology
Based on Litecoin, the FLASH technology was designed to transfer remittances in the form of FLASH coins both locally and across different countries in a matter of seconds. Those receiving the cryptocurrency can then exchange it for their local currency at crypto coin ATMs and regular ATMs or use FLASH at merchants that accept the coin. FLASH coin has no risk of inflation as all 900 million coins were initially launched and shared with the community and there will be no additional coins.
FTI has an exclusive license for the use of remittance technology that runs on FLASH and plans to implement it within barter exchanges so as to enhance their security and integrity. It will also be acquiring an inventory of FLASH coins.
FTI has held a strategic and innovative position within the food industry for some time and is now looking to incorporate blockchain into the industry as a way in which to track produce from inception to end-use, covering the entire supply chain.
For instance, in the case of a product recall process, blockchain will quickly help identify where the supply issue might have occurred. This will significantly reduce the time required to determine the cause of a problem while also increasing accuracy in this process. In quickly identifying the problem, suppliers can also mitigate reputational issues and associated revenue loss.
FTI plans to provide blockchain services to produce companies (e.g. supermarkets), working with suppliers to alleviate the problems associated with out-of-date processes and technologies. In implementing blockchain, suppliers and resellers will have real-time access to accurate and validated information about their products.
Barter exchanges are spaces in which people can exchange goods or services without the use of cash. Members are given credits for their products or services, and these can then be used with other members of the exchange, eliminating the need for an exactly-matched product-to-product or product-to-service exchange between two members.
According to the International Reciprocal Trade Association, the barter industry is worth between $12 billion to $14 billion, and most of this comes from traditional exchange companies and corporate bartering. Barter exchanges act as third-party coordinators for barter transactions, tracking their value and the value of member accounts. Exchanges also provide members with monthly accounting and year-end tax reporting.
Liquidation in barter exchanges
A significant component of barter exchanges has taken the form of corporations looking to liquidate their assets. When facing liquidation, large corporations have found that barter exchanges are spaces in which these assets can be easily converted into credits that can be used to offset the cost of their expenses, allowing them to conserve their cash reserves.
Adding blockchain to the bartering equation
By incorporating blockchain into current barter exchanges, FTI hopes to provide a safe and secure format for transactions through the use of blockchain technology. Blockchain technology will help attain this by ensuring funds are available, completing transactions within a short period, creating permanent transactional records and assigning values to each exchange. With these goals in mind, FTI plans to use its exclusive license with FLASH to introduce blockchain to barter exchanges so that users can exchange FLASH for goods and services at a lower cost of exchange, without needing to worry about the potentially changing value of their credits. This will also potentially increase the number of FLASH coin holders.
William Hullah—President, Founder and CEO
William Hullah brings over 35 years of experience in various industries, particularly in the food, barter and liquidation market segments. He is also current president and founder of Cardinal Biologicals Ltd. His past experience includes the role of president of the Community Share Food Bank from 2003 to 2014. In 2013 he was awarded the Queen Elizabeth II Diamond Jubilee Medal for his dedicated volunteer work in overseeing the Community Share Food Bank.
Gary Hullah—CFO and Director
Gary Hullah has over 20 years of experience in the target industries, including concurrent roles at FTI and Cardinal Biologicals Ltd. He has background in computer programing and accounting. His past experiences with the companies include Food Safety Technician, Warehouse Logistics, Barter Exchange Broker, Retail Manager and Financial Reporting.