Myanmar has a population of 55 million, and a workforce of 22 million. The economy is mostly agrarian, with 70% (15.4 million) of work population in the agricultural space. More than 90% of farmers are smallholders (less than 20 cattle). These farmers are largely unbankable. With a cattle population of 17 million, which when converted into a formalized asset, will allow these unbanked to gain access to a new source of financing with the potential to improve their lives and livelihood - that's 18.5 million people with local sustainability and agriculture ecosystem.
There are 3 major parts to the solution. A physically tamper-proof RFID livestock tag attached to the ear of the cattle. Secondly, a digitally immutable trusted data store is implemented via the use of private blockchain technology. Finally, attestation has to be carried out by a third party that is authoritative enough to be trusted and do not have the incentive for collusion with the cattle owner – in this case, a livestock insurance company.
These 3 components already exist in various forms today but cannot effectively solve the problem when working in isolation. The innovation in the solution lies combining all three parts in solving the provenance problem involving cattle proof of ownership and owner identity. Doing so provides the foundation that enables cattle to be used as collateral for loans.
A Joint Pilot Study was launched on 6th June 2018 with 2 Government ministries in Myanmar on and completed in October 2018. We were recognized as the only one that has presented them with a complete solution that addresses financial inclusion as well as the country's pursuit of data immutability. This is why Myanma Insurance has cited our solution as the reason why they are able to issue a livestock insurance policy for the first time since 1988.