Blockchain technology has had a significant impact on various aspects of business, such as payments, utilities, digital identities, and supply chain. Among these use cases, supply chain is considered the most complex to implement on the blockchain. In an interview, Ms. Hope Liu, the founder of Eximchain, explains the business model of Eximchain and the challenges of integrating blockchain into the supply chain industry.
BM: Please share your background and motivation to start Eximchain
Hope: I was born in Tianjin, China, and hold a B.A from Peking University and an MBA from MIT. I previously worked at UBS Asia, handling cross-border transactions, and served as the Lab Lead of the North American Blockchain Association. My interest in blockchain applications grew during an MIT Media Lab course, where I realized the potential of integrating blockchain technology into supply chain processes. My co-founder and I saw an opportunity to become the blockchain infrastructure for supply chain applications and address the lack of transparency, connectivity, and agility in the global supply chain industry.
BM: What motivates you the most in the blockchain industry?
Hope: The dynamic and fast-paced nature of the blockchain industry is motivating. I am driven by the opportunity to overcome challenges and transform industries like supply chain through blockchain technology. By harnessing the positive impacts of blockchain, we can streamline operations and empower businesses. This gives me a sense of satisfaction as we create an impact on the environment and stay at the forefront of technological innovation.
BM: What suggestions would you give to budding entrepreneurs in blockchain?
Hope: I encourage young entrepreneurs to embrace risk and constantly adapt to new changes. It is important to have a flexible mindset and stay at the forefront of technological trends. By doing so, entrepreneurs can discover ways to turn challenges into opportunities and simplify business operations through blockchain technology.
BM: What is the core idea behind Eximchain?
Hope: The core idea of Eximchain is to provide blockchain-based solutions that transform the global supply chain by reducing barriers, increasing coordination, and instilling trust in cross-border transactions. With Eximchain’s public blockchain network, enterprises can eliminate traditional supply chain barriers and create an efficient, transparent, and secure global network.
BM: How does Eximchain start? What is the stance of your supporters and critics?
Hope: I noticed inefficiencies in cross-border transactions and decided to make a change. While studying at MIT, I learned about blockchain and realized its potential to solve global payment issues. I started working on the Eximchain project with my partner, Juan Sebastian Huertas. Initially, we faced challenges in persuading supply chain users to integrate blockchain solutions. However, we received support from the Legatum Seed Grant and the MIT Sandbox Program, allowing us to expand the team and raise $21 million in funding.
BM: What are the important bottlenecks in the supply chain that blockchain can solve?
Hope: Trust and timely payment are crucial in supply chain operations. Blockchain can provide transparency and visibility to all parties involved, reducing fraud and establishing trust. The recorded transactions build a basis of trust, allowing suppliers and buyers to establish reputations and reliability. Blockchain opens up opportunities for small and medium-sized enterprises to work with trusted partners and expand their business.
BM: What are the challenges in implementing blockchain technology in the supply chain, such as VAT and tax?
Hope: Implementing blockchain technology for a company with a large number of invoices may not be easy within a short period of time. Some businesses may be hesitant unless blockchain brings value to future transactions. Tools are also needed to simplify data porting, but these are currently in development. As for taxation, blockchain can provide transparency for tax authorities, but agreement on shared data requirements and formats may be a challenge.
BM: What is your vision for blockchain and Eximchain?
Hope: I envision blockchain being integrated into operations for many businesses, especially for future transactions. Eximchain aims to help supply chain businesses track goods back to the original purchase order and quickly collect downstream data. It also seeks to create a common ledger for participants in the e-commerce ecosystem, optimizing inventory levels and avoiding waste. Eximchain will continue exploring possibilities to overcome inefficiencies and challenges in supply chain through blockchain technology.
BM: Is there any impact of regulation changes on Eximchain?
Hope: Blockchain solutions can provide real-time updates on changes in ownership and status, which can greatly improve the efficiency of trading processes, such as bill lading. However, agreement on shared data requirements and formats may be necessary for regulatory changes to have a positive impact.
BM: Any message for the blockchain community?
Hope: Companies and enterprises need to prepare for greater innovation and transformation in business models. Blockchain has the power to change the way things are done, and embracing this technology is key to staying ahead in the evolving world of e-commerce and transactions.