A new startup has been created by several Deloitte veterans who are coming together to create a tokenised blockchain protocol to offer a solution to one of the world’s most inefficient markets.
The startup will be called Citizens Reserve and its 32-person team will consist of the ex-Deloitte Global Blockchain leader, Eric Piscini as well as two other former members of its blockchain division. Citizens Reserve is aiming to create a permission blockchain protocol known as “zerv” which will develop to become a fully functional operating system for supply chains.
“We’re building a supply chain middleware that sits on top of the blockchain and gives you all the fundamental pieces of the supply chain,” Piscini explained.
Piscini believes that the zerv network will be able to build on existing blockchain networks such as quorum and Ethereum to create a technology that matches orders and tracks each stage of the supply chain process. The key to this, however, will be in the technologies ability to embrace blockchain and offer monetary incentives via it cryptocurrency that will be exchangeable for real-world assets.
“The real version is that this is a decentralized platform, which is very true to the blockchain. We don’t want to become a centralized system.”
He added that whilst the market will determine the value of the coin, the company is planning to accumulate the real-world assets and back the token in such a way that it will never go below $0.01. The idea is that the tokens could be redeemed for various assets by members and users of the platform.
With this vision in hand, Citizens Reserve is now looking to crowdfund millions through its initial coin offering. Whilst the total of the fundraising exercise has not been made public, Piscini has said that the aim is to also have a public sale of assets so that additional funds could be raised.
He was quick to note that raised funds will not be used to fund the company itself, but rather they will be ploughed into building and developing the zerv network.
Citizens Reserve was set up in late 2016 and is led by CEO and co-founder James Bower, the former CEO of Gamevice/Wikipad.
Whilst details of the company financing are a little scarce, Piscini has been a little more transparent about its marketing strategy. According to the company materials, the first sector to be targeted by Citizens Reserve will be the defence sector due to the fact that the markets for the trade of ammunition and weapons don’t currently utilise any such software solutions.
“In the defence industry, the way people buy and sell is by picking up the phone,” he said.
Over time it is hoped that the zerv network will be used across a range of industries such as real estate, healthcare, VR and electronics after they have conquered the munitions world. The company will provide a guarantee of the token’s value and manufacturers will broadcast their inventory across the network.
“If I want to sell my product, I’ll forecast the information I have coming up and I’ll publish that on the platform. We match the order, provide the marketplace functions and the agreement will be logged on the blockchain. We don’t put the individual asset on the blockchain.”
Whilst it seems that some plans are still a little up in the air, Piscini is ever confident that the supply chain is one of the best use-cases for blockchain technology.
“When I was working at Deloitte, across all the different use cases of blockchain, the number one use case in terms of revenue and impact was supply chain,” he said.
“What we want is to become the number one supply chain choice for everyone who wants to do supply chain in the world.”
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