Blockchain applications for supply chain management are a hot ticket right now, as the cost-saving value of properly integrating these technologies is driving a great deal of investor interest. There are supply chain projects like VeChain, the enterprise blockchain platform for luxury products, that are rapidly becoming some of the highest valued blockchain projects on the market. Even JD.com launched their own blockchain accelerator to develop projects solving key e-commerce supply chain problems.
Given the clear value proposition of this blockchain application, it’s important to understand some of the other supply chain players. One such project is Ambrosus, a blockchain-based ecosystem for food and medicine supply chains. Combining high-tech sensors (IoT), blockchain protocols built on Ethereum, and smart contracts, Ambrosus’ technology will create a secure, autonomous supply chain that allows consumers to easily track their life-essential products. Ultimately, their system works to ensure the origin, quality, compliance and proper handling of items tracked within the network.
With their focus on the food and pharmaceuticals space, Ambrosus is carving out a niche for themselves within the ‘blockchain for supply chain management’ market, and for good reason. The current cost of supply chain issues to the pharmaceutical industry alone is an estimated $46 billion a year in lost profits.
While the project is very young, and the platform is reliant on a combination in-house and open source development, Ambrosus has demonstrated some interesting elements that are worth highlighting.
Interested in Ambrosus? Here’s a quick rundown of the project:
Platform & Development
The Ambrosus protocol and the software layer on top of it are built on the Ethereum blockchain as well as other distributed technologies that allow information from IoT devices to be recorded onto a decentralized network.
The Ambrosus protocol is constructed from three main components, the Measurements Repository, Requirements Smart Contract, and the Amber Token.
Measurements Repository: This component manages a distributed database for product-specific measurements. This is essentially the method of storing data readings in order to collect specific attributes of an item along a supply chain.
Requirements Smart Contract: This component of the protocol is used to define quality standards that can be directly compared to items in the Measurements Smart Contract. These are publically available, user-created contracts that are critical to monitoring items in the ecosystem. These contracts determine whether a product is meeting quality assurance requirements.
Amber Token: The Amber token (AMB) is an ERC-20 utility token for the platform, which is used to keep information on the Ambrosus network up to date as products move across the supply chain. Each item that moves through the supply chain are assigned AMB tokens, and as the items are transformed via the manufacturing process, these tokens can be split/merged into other measurement smart contracts. This approach effectively provides a full history of each given item, and tokens can be returned to the ecosystem by the end consumers, an incentive method for these consumers to purchase AMB-backed products.
Similar to other supply chain projects, IoT devices are an integral element of Ambrosus’ platform design. These devices, which are mainly tags, tracers and sensors, provide the ability monitor physical objects and transmit data associated with them.
Finally, here are several examples of use cases currently found on the Ambrosus platform, as described in their white paper:
- Traceability of various raw materials
- Brand protection for premium products
- Deploying a real-time compliance auditing system
- Monitoring correct delivery conditions for frozen goods
- Recording factory manufacturing procedures for audit traceability
- Secured data transmission and management for clinical trials
- Quality checker app for premium products originating from China
The Ambrosus team looks to be well-rounded, with an executive team that comes from Google and MIT. There are ~10 engineers listed currently working on the underlying technology.
Ambrosus currently has a market cap of ~$55 million with a circulating supply of 144,590,975 AMB and a total supply of 361,477,438 AMB.
Ambrosus is functioning in one of the hottest markets for blockchain technology and is working to solve a multi-billion dollar problem that is plaguing our food and pharmaceutical industries. If they execute their plan properly, Ambrosus could take its place next to other similar top-flight projects like VeChain.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.