Summary

Morpheus Network is an integrated and automated supply chain platform that provides total transparency and frictionless currency payments using the Morpheus token (MRPH). Morpheus Network enables suppliers, manufacturers, exporters and importers to receive and remit payments in their local currency in over 200 countries globally. This is accomplished through integration with SWIFT which allows a direct transfer of funds into over 1600 banks. This process allows for a more seamless and efficient method of transferring payments across both supply-chains and borders. For example, as of Q4 2018, the average cost of sending a payment from the UK to China was 8.14% compared to to the flat 1.5% fee to use Morpheus Network [1].

In addition to adding efficiencies to cross-border payments, Morpheus Network implements smart-contracts to offer escrow payment services and artificial intelligence. Based on predetermined smart-contract conditions, with escrow payments in place, funds will only become available following completion of the smart-contracts’ objectives, such as confirmed shipment deliveries using data from established companies like FedEx and DHL. Their smart contract’s will also allow for streamlining of ordering to automatically execute new orders when current inventories are low. In order to execute smart contracts that are based on real world events, Morpheus Network is teaming up with both traditional companies like SAP and cryptocurrency projects like Chainlink, to integrate oracles where data can be validated. These oracle services will allow real world events to trigger smart contract execution with certainty and precision. Morpheus Network will use artificial intelligence to further optimize supply-chains by gathering vast amounts of logistical data from the blockchain. These data points allow shipping ports to be planned and routed in advance and as necessary based on global traffic, port delays and weather.

MRPH is an ERC-20 token which runs on Ethereum to validate transactions and execute smart contracts. MRPH will be used both for payment remittances and paying transaction fees over the network, but users will have the option to remit payments in their native currency without having to convert to MRPH. Holding MRPH also has the added utility of earning 33.33% of all transaction fees which are distributed back to token holders.


Team

Morpheus Network was founded in 2016 by both Danny Weinberger and Noam Eppel. Danny Weinberger is the CEO and has 15+ years in global trade experience, most recently as Director of Operations at Stronghold Equipment where he oversaw imports, exports, acquisitions, sales and liquidations of industrial assets. Noam Eppel is the COO and is leading the development of the software. He previously founded Clean Forest Solutions Inc., a distributed and full-service website agency composed of IT professionals. Roger Cook is the Team Lead for Global Logistics. He was previously the CEO of DHL and Capital Springboard. The core team is made up of 30 professionals with 10 members focusing on software engineering and 5 members focusing on marketing and sales.

Sentiment analysis

  • Open Source: Yes

  • Github depositories: 1

  • Github commits: 5

  • Twitter: 1.5K followers

  • Facebook: 8.4K followers

  • Reddit: 1.1K subscribers

  • Steem: N/A

  • Blog: Moderate Activity


Utility & INcentives

MRPH was designed to have utility-based value similar to cash: for direct payments across the supply-chain, as well as payments towards transaction fees to use the Morpheus Network platform. MPRH is an ERC20 token, so consensus and security of the network are guaranteed by the underlying mechanics of Ethereum, which is one of the most secure PoW blockchains today. In terms of sharing data over Morpheus Network, a trusted consortium will be established, so that document records on the blockchain can be accessed only by authorized participants; this can be all participants or only those that need a particular portion of the data. Document ownership and access can be anonymous yet securely identified between partners who require verification. This will allow data records to be widely shared and protected at the same time.

In order to bridge crypto and the traditional financial system, the network’s Microsoft Dynamics 365 ERP system is integrated with SWIFT for direct international payments. This bridge allows Morpheus Network to solve issues with the current banking system, converting funds with real world rates using the power of blockchain technology, and incorporating only a single, small Morpheus Network fee of 1.5% paid in MRPH. Funds can be kept on Morpheus Network or deposited directly into a receiver's bank account in their local currency.

There is an additional incentive to hold MRPH as every three months 33.33% of all transaction fees will be distributed back to token holders. A dApp is being developed specifically for this purpose, which allows users to enter their public wallet address that holds MRPH tokens, verifies the amount held, and then sends the 33.33% of transaction revenue (using the same proportion of tokens held in ratio to the entire MRPH token marketplace). This token payout will not dilute total supply as no new tokens are being generated but simply being redistributed, which incentivizes network participants to hold their tokens in a way to subsidize future transaction fee costs.

Tokenomics

Morpheus Network raised $9.8 million with 25.9 million tokens allocated as of their ICO on April 22, 2018 [4]. MRPH is currently available for trading on HotBit, IDAX, IDEX and Bancor. As it is an ERC-20 token, this should help facilitate easy integration into larger, more established exchanges like Binance and Coinbase once trading volumes and community interest increases. There is currently a circulating supply of 30.3 million MRPH and a total supply of 47.89 million MRPH. Information about the Morpheus ICO and roadmap are limited, but Scow is in contact with the core Morpheus team and has discovered they are in the process of revamping the Morpheus Network white paper, which is to be published shortly.

Market opportunity

Morpheus Network is disrupting the global supply chain remittance market, which is very fragmented and expensive. If every country improved key supply chain barriers such as border administration and transport and communications infrastructure even halfway to the world’s best practices, global GDP could increase by $2.6 trillion [2]. The value add by itself of making global trade more efficient gives Morpheus Network a clear use case. Combined with efficiencies it can generate for current trade, it is a very viable solution for many businesses. Traditional competitors such as banks and remittance services like Western Union charge very high fees compared to the flat 1.5% fee to use Morpheus Network.

Morpheus Network distinguishes itself from other supply-chain cryptocurrencies by narrowing its focus mainly to cross-border payments with added smart contract utility. As compared to a project like VeChain, which is aiming to be a supply-chain ecosystem platform that can be used to build enterprise applications, Morpheus Network focuses on solving a critical need within the supply chain itself. As of now, there hasn’t been official plans by VeChain to focus on the issue of cross-border payments, and while it is a very viable solution for companies looking to fully transform their supply chains onto the blockchain, it does not currently offer the utility Morpheus Network provides. Ripple Labs, which designed the XRP token, works with banks in order to streamline cross-border payments but is very limited in its logic as smart contracts are not native to the protocol. Furthermore, it was not designed to be integrated with supply chain participants which would limit both its appeal and utility for the use case Morpheus Network was designed for.

Current Status and roadmap

To help drive adoption and spread awareness of their platform, Morpheus Network has opened up submissions to access their beta software through the Morpheus Pioneer Program [5]. This program allows companies to complete a simple survey outlining various supply chain issues they face and what functionalities they would like to test. This is a simple way of identifying not only prospective users but also learning their needs to best design the end product.

On September 21, 2018, Morpheus Network announced that they signed an SAP PartnerEdge program agreement [6]. This partnership allows Morpheus Network to develop use cases that solve mission critical problems that ensure proper streamlining of supply chain processes and settlements at a global scale, from automated purchase orders to inventory management. They plan to make their platform available on the SAP’s App Center for companies to access and use.

Also, they have partnered with Chainlink, a decentralized oracle network that enables smart contracts to securely access and execute based on off-chain data feeds, web APIs, and traditional bank payments [7]. This partnership allows smart contracts in the Morpheus Network to communicate with many important service providers on both sides of a transaction. Chainlink’s solution is significantly more secure and reliable than centralized oracles.

The Morpheus Network team has completed the initial set of roadmap objectives outlined in their initial whitepaper. The team is currently revising their whitepaper which they hope to release soon with updated roadmap objectives for future developments.


References

[1]https://remittanceprices.worldbank.org/en/corridor/United-Kingdom/China

[2]http://www3.weforum.org/docs/WEF_SCT_EnablingTrade_Report_2013.pdf

[3]https://coinmarketcap.com/currencies/morpheus-network/

[4]https://medium.com/morpheus-network/morph-token-sale-announcement-9-883-347-usd-raised-68bf4b0cba6f

[5]https://www.surveymonkey.com/r/MorpheusPioneerProgram

[6]https://medium.com/morpheus-network/morpheus-network-joins-sap-partneredge-open-ecosystem-to-transform-global-supply-chains-f6bdd4db30f3

[7]https://medium.com/morpheus-network/morpheus-network-partners-with-leading-decentralized-oracle-network-provider-chainlink-for-b6d197637ce1

[8]https://web.archive.org/web/20180215160751/https://morpheus.network/whitepaper/