eHarvestHub – The Decentralization of the Food Supply Chain Has Begun
eHarvestHub is a California-based company, that enables small farmers to sell their produce to grocers directly and hire truckers for transportation in an open marketplace. This would enable them to sell their produce immediately, without a middleman. The company has been interviewing over 100 farmers and has been developing their platform for over 3 years.
Their pre-ICO is looking to sell 64.8M of their own EHH Tokens for 12,960 ETH (4.28M USD) throughout 8 days. The proceeds will go towards Initiating their Blockchain protocol, hiring developers, starting programs in Nicaragua, Mexico, Colombia, and continue growing their footprint in the US. Their token is used as a currency for their marketplace.
eHarvestHub will pre-ICO this November 21st at 12am UTC.
eHarvestHub aims to eliminate middlemen from the food supply-chain, through an open marketplace. The biggest reason that farmers require a middleman, is to help them distribute their produce among hundreds of grocers in multiple regions. In order to solve the transportation problem, the platform also incorporates a reward system for truckers, to move the produce.
The way it works is simple, farmers can list their produce, which grocers can purchase, once a route is created. Both can look at available truckers, and select a reasonable delivery price. Both growers and truckers set their own price, establishing a free market, and giving them independence.
The system rates every purchase to keep everyone honest. They also employ government officials to inspect food, making sure it complies with food safety regulations.
The reality of the problem is that the network required to distribute produce is incredibly complex, as described by their white paper. Each step on the vast web of interactions reduces the margins of the produce for the farmers, and increases the price for the consumers.
The token is called the EHH token (eHarvestHub token), however there is minimal information about the implementation aspects of this token in the whitepaper itself. The team has since clarified that it will be a standard implementation as an ERC20 token. It will be used as a payment token initially which is a simple Ethereum contract.
For the next stage they will have to invest in properly implementing P2P payment channels if they do not want a slowdown in payment transfer times (something like Raiden based payments) as that is a rather large problem within the Blockchain ecosystem right now.
It is also stated in the whitepaper that this token can be used to settle funds quicker than banking routes due to cross country regulation etc. This is definitely true and is a very good use of a cryptocurrency.
Use of Funds
The Whitepaper by eHarvestHub provides some information about how the funds will be used on page 27 of their white paper. Very general statements about development and hiring are given, without explaining why they need to raise over $4M during their Pre-ICO and over $15M during the ICO.
Their intent is to collect information during the pre-ICO to be able to create a more thorough breakdown of use of funds for their ICO. eHarvestHub’s CEO, Alvaro Ramirez has mentioned that more details will be provided between now and and May 2018. For now, the only information regarding the use of funds is the following picture on page 29
The company will create 900M tokens and they will be distributed as follows:
48% Sold during ICO
20% Kept by the company
15% Given as Customer Rewards
12% Sold Pre-ICO
5% Given to advisors
This means 60% of the currency will be purchased by users through their Pre-ICO and ICO events at a discount. This currency will be used to replace the fiat money in the platform. The idea is that the currency will be purchased at a discount, so the token holders will then trade the token at a higher price with the marketplace and exchanges.
During the Pre-ICO the company will sell each 5,000 EHH tokens for 1 ETH.
The minimum amount allowed to participate is 0.166667 ETH which translates to roughly $55 USD at the moment of writing. Participants will receive over 50% bonus for purchasing the token the first day.
The Blockchain Test
While transparency is mentioned as a prime motivator for the use of a Blockchain, there are many unanswered questions in how the implementation can actually lead to real transparency.
Yes, timestamped transactions can show when purchase orders were made and can keep some accountability for when various transactions in the supply chain exchanged money.
What is not included in the whitepaper but clarified by the team is that audits are performed by EHH employees, to ensure data that is input into the Blockchain is accurate. Further to that they also conduct audits with third parties like PrimusLab to ensure the food safety data is accurate. This can still be easily done with a traditional system that is non-decentralized with a software service hosted by the company, so there is no real advantage of using a Blockchain for this specific part of their use-case. However it does speak to the expertise of the team in the mediation of any buyer-seller disputes, and they have a sound business strategy to audit and settle any such issues.
One of the most interesting aspects about this ICO, is the fact that the team has been working on multiple aspects of the idea since November 2011. Making it one of the few ICOs we’ve seen where testing, implementation, and experience are very well detailed. The platform as a Management system has existed since 2014. By January of 2015 they had already tracked over 4 million cases of fresh produce.
eHarvestHub also raised $1M in VC Funding in March 2016. The round was led by Tim Draper, the famous VC that purchased Bitcoins seized by the US government in 2016. The marketplace inventory and management systems were completed by December 2016, by February of 2017 the Transportation system was also finished, under the name “eHarvestHaul”. During an interview, we discovered that since January 2017, the company has been able to track over $27M USD in produce.
NOV 2011 – JUL 2012
Age of Discovery.
Business Plan created.
Advisory Board created.
eHarvestHub becomes a Delaware C Corp.
JAN 2013 – DEC 2014
Traceability MVP soft launch.
Version 2 of MVP Released (2014).
Version 1 of Order Management System(OMS).
Raise $87,000 Friends & Family Round.
Win 1st place at 11 pitch competitions including, Google NEXT, Silicon Valley Startup & FoodIT.
The farm tools.
JAN 2015 – OCT 2015
The farm tools.
Release V2 Order Management System.
Farmers tracked more than 4 million cases of fresh produce.
Win 1st Place at PUSHTECH 2020 and the industries Produce Marketing Association (PMA), SARTA AgTech and San. Francisco Shark Tank, pitch competitions.
$ 1 million in VC funding.
NOV 2015 – MAR 2016
$ 1 million in VC funding.
Closed $1Million from Tim Draper’s Ventures Lab & Kaiwu Capital Begun development of Marketplace, Transportation platform and Inventory Management System (IMS).
Partnered with Universidad Americana de Managua (UAM) and Universidad Nacional de Ingenieria (UNI) in Nicaragua to carry out a weekend hackathon to find our awesome development team.
Marketplace and Inventory Management System are Completed and released.
eHarvestHaul platform completed and released.
NOV 2017 – APRIL 2018
Commence Blockchain traceability development and test in Nicaraguan Pilot. Blockchain Traceability will connect the consumer directly to the Farmer.
APRIL 5 TO 18
Our bonus structure reflects how important you are to us.
ICO tentatively will start April 28th ending May 24th, 2018. We expect to sale approximately 30 million EHH tokens.
EHH Token in Circulation.
EHH Token in Circulation.
Token marketplace platform to be completed. Token contributors will be able to list and directly sale EHH tokens to eHarvestHub customers. Customers will begin to pay eHarvestHub for services creating demand for tokens to be sold. 3rd Parties will be able to pay eHarvestHub with EHH tokens for access to market to its members.
California Farmers generate 150,000 transaction through eHarvestHub.
EHH Token used P2P.
EHH Token used P2P.
Customers will begin using EHH Token to pay for products and services offered in eHarvestHub Marketplace.
And for more information please click link below
WhitePaper : https://www.ehhico.com/wp-content/uploads/2018/05/eHarvestHub_White_Paper.pdf
Website : https://www.ehhico.com/#ico
Bountyhive username: johnthedon
Disclaimer: This article was published in terms of the bounty campaign. I am not a project team member or its representative but a supporter of this incredible project.
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