Indonesia Empowers Blockchain Projects Apart from Crypto Trading

In Indonesia, as many as 7,4 million people have bought or sold cryptocurrency in July 2021, according to data from the Indonesian Ministry of Trade. Temporary blockchain often associated with digital assets and financial products, many projects blockchain being developed for other sectors including philanthropy, agriculture, games and digital art.

Most startups are blockchain is still in its infancy, but the founders believe this technology can revolutionize business operations in other markets. Businessman blockchain often highlight the decentralized nature of blockchain technology as well as its capacity to record transactions and increase accountability as two significant benefits. Startups that appear also use the platform blockchain different ones to suit their needs, such as Ethereum, Near, and Binance Smart Chain.

Here are some sample projects blockchain other than in terms of finance and crypto trading in Indonesia.

Transparency in the philanthropic sector

BeKind is a startup that utilizes technology blockchain for charity management. Launched in June, BeKind aims to address “two major challenges in the global donation system—accountability and business sustainability,” said BeKind CEO Fajar Jasmin.

“Donors who donate through charities don't know exactly how much of their money goes into the hands of the beneficiary. While charities are managed by non-profit organizations, many of them operate without sufficient cash reserves. Therefore, it is not sustainable," said Jasmin to KrASIA.

The idea behind BeKind is very simple. The company created a token, K1ND, which is built on Binance Smart Chain technology. Donors will earn K1ND on the Tokocrypto exchange as well through other channels such as transfer peer-to-peer after the official launch of the token in December. Donors can then deposit their K1ND into the online wallets of charities and non-profit organizations registered on the BeKind platform. They can also use their tokens to staking on the BeKind Hub platform, as is the interest earned on a savings account.

Jasmin said this system can increase transparency because all transactions are recorded in the blockchain and can be seen directly online by all users. The system also allows donors, charities and non-profit organizations to earn interest from staking. The token is deposited into the account staking with a certain annual percentage rate or annual yield percentage, and is free to withdraw at any time. APY can fluctuate depending on how many tokens are staked, or it can be fixed APY, depending on how it's set up by the platform. Jasmine did not provide clear details.

BeKind is a donation based project blockchain first in Indonesia. The company is currently selling its tokens through private sales channels for USD 0,17 per token, while the estimated price listingit will be USD 0,24, according to the website. BeKind will officially launch and list its token on the Tokocrypto exchange in December.

The company also plans to implement an “impact tracking system” on blockchain, which will provide information on the development of projects funded with K1ND. “In the future, we will provide documentation and impact donation reports related to blockchain to ensure transparency,” said Jasmin.

Blockchain in the agricultural sector

Other entrepreneurs see the possibility of digitizing the conventional sector thanks to blockchain. One example is Hara, a -based data exchange service blockchain for the food and agriculture sectors.

Hara was launched in 2015 with the aim of implementing the concept of “precision farming” thanks to technologies such as remote sensors. The aim is to manage the agricultural sector more accurately and increase yields. However, the startup shifted its business to data collection in 2017 after experiencing difficulties developing its core business model.

The founders of Hara, Regi Wahyu and Imron Zuhri, believe that reliable crop data will help actors in the agricultural sector. Currently, the company collects, verifies and records agricultural data on the platform blockchain, including data on production, cultivation processes, soil and plant conditions, pest attacks, and land ownership.

Hara collects and shares crop data to assist various actors in the agricultural sector. Photo by Eddie Kopp on Unsplash

“Hara is cooperating with the agency we call agripreneurs. They have an Android phone, and thanks to our app, they can act as data collectors in their community,” Hara's head of business development Firnando Sirait told KrASIA.

Hara incentivizes farmers, or “field agents”, to provide data by offering loyalty points that can be redeemed on the Hara platform for discounts on agricultural products or credit. Hara then used the data to run multiple projects like activities crowd planting, where farmers can use their yards or non-productive land to grow crops using polybags. Hara also provides farmers with production forecasts based on the data collected. Farmers can get “various types of support such as best farming practices, business loans, or access to more buyers,” Firnando said.

Hara also sells the collected data to private companies, government agencies, and financial institutions through a utility token called HART. The token is created on Ethereum and is traded on the Indodax exchange.

According to Hara, buyers use this data to improve their services in the agricultural sector. For example, financial institutions can conduct credit assessments and risk profiles to provide microcredit to farmers. At the same time, local governments can make decisions to address agricultural problems based on detailed data collected by farmers.

The company is currently working on more use cases for the technology blockchain-his. Hara is also building an NFT platform to be launched in the first quarter of next year, but Firnando did not reveal details about the project.

NFT and digital collection

As more and more people use crypto and blockchain technology, the NFT platform has also become important for art creators and collectors. According to report latest by DappRadar, Indonesians are simply following the US world in “expressed interest” in NFT technology and the NTF market. DappRadar is the leading global app store for decentralized applications (dapps) used by more than 600.000 monthly users. The company tracks over 3.000 dapps across ten blockchains to present reports on blockchain-related trends.

The increasing interest of users in Indonesia in non-exchangeable tokens (NFT) has motivated various startups to join the NFT wave. One example is Tokocrypto, which launched the NFT marketplace, TokoMall, in September. The platform hosts more than 1.403 merchants and 1.391 artworks just one month after its launch and has sold over 176 NFTs, Tokocrypto co-founder Pang Xue Kai told KrASIA in a session. interview.

TokoMall already has more than 8.000 users. Photo by Tokocrypto.

Another up-and-coming startup in the space blockchain is Paras, an NFT marketplace for digital collectibles, including comics, games, and digital art card items. The startup also manages Paras Comic, an exchange service where users can read, buy, and lend collectible NFT comics.

This company operates in above blockchain Near. “All transactions use NEAR, the platform's native token, but going forward we will support cryptocurrency another,” Paras founder Rahmat Albariqy told KrASIA.

The company recently raised seed funding of USD 5 million from various investors, including Black Dragon Capital, Digital Renaissance Foundation, and GFS Ventures. The startup is said to be using the investment to develop more crypto-native intellectual property focused on game and comics, said Rahmat.

"We hope that there will be more new NFT projects from Indonesia so that we can become a regional leader in the next three to five years," he added.

Uncertainty and challenges of blockchain technology

Despite the increasing popularity cryptocurrency and asset based blockchain, many consumers still have little understanding and doubt about blockchain and its value. Entrepreneurs are aware of this, but they believe that the potential benefits outweigh the risks and are skeptic about it.

Jasmin, for example, admits that the speculative nature of cryptocurrency may impact BeKind and its tokens in the future. “We recognize that there may be people who use BeKind tokens to trade for quick profits. We don't promote it, but we can't control how people use their tokens. It does pose a risk, but we believe blockchain is an important technology that can improve people's lives,” said Jasmin.

Hacking recent data impacting crypto platforms as well as consumer views on blockchain. Firnando of Hara believes that when the industry blockchain mature, the authorities will make stronger regulations, which will motivate relevant players to implement “a safer system on their platforms to increase public trust in blockchain and crypto. "

Rahmat from Paras revealed that local talent will be needed for this sector to thrive. "Blockchain and smart contracts are new technologies that will always evolve, and NFT-based projects require a strong technical team,” he said.

Despite the difficulties, the three founders are optimistic about the future blockchain in this country. “Indonesia is open to innovation and fast in adopting new technologies to answer challenges in society. We forecast a sustainable market for blockchain here," said Jasmine.

-This article was first released by KRASIA. Re-released in Indonesian as part of the collaboration with DailySocial