Elementh's goal is to create an alternative protocol for the development of decentralized applications used by e-commerce, providing a standard quality nomenclature, guaranteeing ownership of a particular product and the ability to create specialized smart contracts for e-commerce. Elementh will achieve this by creating a blockchain with a built-in Turing-complete programming language, allowing everyone to write smart contracts and decentralized applications, enabling the use of unified product cards, e-commerce transactions and the transfer of ownership.
System of Goods
Along with the system of tokens, Elementh has a system of goods, which can also be used in a large number of applications, such as tracking the movement of a particular item from its creation to the current owner, tracking original goods and detecting counterfeit goods. Unlike the system of tokens, the system of goods also provides for the ability to "issue" a particular product at a particular address, indicating all possible item's data (such as name, manufacturer, bar code, etc.). And if identical goods are already present in the blockchain, the issuer will receive a message about it, and he will have the opportunity to indicate how many items of goods he wants to "issue".
If an item has a serial number, it is possible to specify it when the transfer operation is being performed. To provide protection against data forging, only the hash of the serial number is fixed in the system, therefore only the person who knows the initial number has the ability to make a valid transaction. In the absence of a serial number at the moment of "issuing" goods, the system generates it randomly and the holder is able to use it to identify a particular item of goods by printing out the QR code on the package, writing it in an RFID tag or in any other convenient way.
Unified Nomenclature of Goods
Each supplier / distributor / seller in the world has its own data format for goods, and, more importantly, its own nomenclature. Their number is huge and growing every day. For example, let's have a look at the search output in google.shopping for "iphone 7 256gb red":
As you can see, each store has a different name for the product, while the search results also present another iPhone model, followed by the iPhone 7 256gb of other colors and so on. An obvious solution to this problem is the creation of a unified nomenclature of goods that will allow users to see offers on the product of interest on one merchandise card and stores to choose suppliers that are most beneficial to them.
One of the key features of Elementh is the availability of a unified nomenclature. To ensure that the merchandise cards are as complete and accurate as possible, and to reduce the likelihood of creating duplicate cards, the cost of creating and using the card will be different. To create a merchandise card a participant will have to pay, for example, 1 EEE (the price will be set by voting of delegates). At the moment when the owner adds the item to the system, he is offered to use an existing card or create a new one. The use of an existing card costs 100 times less than the creation of a new one (for example, 0,01 EEE). The cardholder receives a reward for each owner of goods that uses his card, as well as for making a transaction using this card. Any participant in the system can supplement information in existing cards, and the cardholder can accept or reject the proposed changes.
Jack, the owner of a small store, was told about the Elementh blockchain and the opportunities it provides. Jack had not sold anything on the Internet before. Having learned about the new possibilities, he decided that it was time to try selling their shoes via the Elementh blockchain, using special applications for sellers. Setting up a store turned out to be quite simple and took several minutes.
Having connected his accounting program to the application, Jack managed to recognize stock balance and bind it to a single nomenclature with fine merchandise cards and complete data of the product features. Information about Jack's goods immediately became available to all members of the Elementh network. Steve saw the store with the boots he needed, immediately made the order, and Jack received a notification that Steve wanted to buy his shoes. Customer's money is immediately transferred to a smart contract, which means that the order is real. Having arranged the delivery of the goods to Steve, Jack began his usual work in the store. As soon as the goods were delivered, the money transferred to Jack's account, which means that he didn't have to wait for a long time and immediately invest the profit in a new product.
One day Jack decided to expand the product range and to sell branded bags, along with footwear. Without hesitation, he opened the b2b application for finding suppliers and manufacturers working in the Elementh blockchain and found the bag manufacturer LOUIS VUITTON. He placed the order, transferring crypto currency to the smart contract. The supplier, having received information about Jack's order, immediately formed a dispatch and transferred data on serial numbers to the smart contract. Now that the transaction is underway, everyone will be able to verify that Jack has authentic LOUIS VUITTON bags in his store and not a fake. This is because in the Elementh network each manufacturer can track the movement of goods and if several owners of the same serial number of one product appear, it means counterfeit and its origin is very easy to track and take necessary measures to notify customers about its existence.
Steve has long been using applications for finding the lowest price for the product he needs. Today he decided that it was time to order new shoes and just in a few minutes he found the couple he needed in Jack's store and placed the order, sending money to the smart contract. Steve has not been afraid to make purchases online and send money to unknown sellers for a long time. If Steve does not receive the goods, he will simply indicate it in a smart contract and the money will return to him. This time his order was processed almost instantly and the courier arrived an hour later. Making sure that the shoes are of the right quality Steve completed the smart contract and the money went to Jack while Steve became the owner of a new pair of shoes. He can easily sell this pair of shoes in the secondary market as soon as he gets bored with them because Elementh network knows that he has authentic items not counterfeit ones. Just in two clicks he will be able to put them up for sale.
In general, there are two types of applications built on top of Elementh. The first category is financial applications that provide users with great opportunities to manage and participate in contracts using cash, including buying and selling products and content online and offline, as well as tokens built on the Elementh software. The second category is non-financial applications, such as identifying fake / counterfeit goods in the supply chain, etc.
- Decentralized marketplaces based on Elementh. Based on Elementh's blockchain any marketplace will be able to allow sellers to use existing merchandise cards without creating new ones. Data on the ownership of the product will allow you to get rid of counterfeit products sold through the marketplace. Unified merchandise cards will allow you to easily find the lowest price for any products. At the same time, it becomes possible to pay using any crypto currency.
- Tracking the movement of goods. The complete producer - distributor - seller - buyer chain, stored in the Elementh blockchain, will allow to find suppliers for any volume of products, up to direct order of goods from the manufacturer. We see it as the future of e-commerce.
- Search for goods by geolocation. Seller information available in the Elementh blockchain allows you to find the most convenient places of purchase for any item.
- Decentralized sending of messages. The ability to send messages allows you to contact directly with any participant in the transaction. This will allow setting up exchange systems, bidding, obtaining individual purchase conditions and so on.
- Store designer. Having all the necessary data to set up a store, the system allows you to create individual decentralized showcases for any vendor in the system.
- Fakes search. Data on all participants of the chain will allow to track the appearance of counterfeit products at any stage of the transfer of ownership of goods.
- Banking scoring. Access to data on all transactions of any participant of the system will allow instantaneous scoring of the seller, which makes it possible to build credit and overdraft systems by the banking institutions.
- Different verticals. Elementh blockchain can be used by any service provider, for example, hotels or airlines with ticket, coupon or voucher entity to store information and track ownership.