Project Background & Rationale
Building upon the Millennium Development Goals, in 2015, all worlds’ countries opted to achieve sustainable development goals (SDGs) by 2030. These goals aim to meet present needs without compromising future generations, ensuring inclusivity through economic growth, social inclusion, and environmental protection, requiring universal participation. Worldwide, coffee is the second most sold commodities after petroleum oil and has the potential to support various communities and nations to achieve their agenda including SDGs. As it is the second most traded agricultural commodity after petroleum, in 2017 coffee generated USD 19 billion in exports, primarily from over 50 developing nations. In 2002, around 20-25 million smallholder families in these nations relied on coffee production. Evidence indicates that these famers faced significant hardship due to plummeting prices caused by global oversupply. As of present this price volatility continues to impact coffee dependent economies, hindering poverty reduction despite coffee being a primary income source. Low prices, quality issues, and inadequate productivity (due the negative impact of abnormal climate change) prevent coffee farmers from contributing to development at various levels, leading to:
1) Persistent poverty,
2) Persistent hunger,
3) Failure to achieve healthy lives and well-being,
4) Unable to participate to the provision of quality education for family and community children,
5) Unable to contribute to gender equality (female and girls development),
6) Unable to acquire clean water and sanitation,
7) Unable to acquire sufficient energy,
8) Unable to acquire and contribute to the creation of decent work and economic growth,
9) Unable to contribute to innovation and infrastructure advancement,
10) Unable to acquire good settlements,
11) Unable to maintain Sustainable production and consumption
12) And plus among others.
All these issues must be addressed. Despite the promise of the SDGs, current evidence suggests insufficient progress. Given coffee’s global economic significance, particularly for developing nations and millions of smallholder farmers often exploited by middlemen in a centralized regulatory environment, there’s an urgent need for new adaptation and a paradigm shift. This includes eliminating intermediaries and establishing transparent, decentralized trading models directly connecting producers and consumers. Thus, key questions arise: 1) How can coffee trading are made transparent and rewarding for coffee farmers? What strategies can connect coffee farmers directly with consumers, bypassing exploitative middlemen and fostering decentralization? Cyesha Coffee Ltd believes the answers lie in integrating Web3, metaverse, and blockchain technologies to revolutionize the coffee sector locally, regionally, and globally. This document outlines the roadmap for Cyesha Coffee Ltd.’s Web3, metaverse, and blockchain integration in the coffee sector.
Phase 1: Education and Strategy
I. Deep Dive into Web3, Metaverse, and Blockchain
Identifying and establishing Cyesha Coffee Ltd.’s core team with adequate knowledge and skills about the concepts of Web3, metaverse, and blockchain technologies.
Required expertise to ensure implementation of the Web3, Metaverse, and Blockchain Integration in the Coffee Sector:
Blockchain:
1) Distributed ledgers,
2) Immutability,
3) Smart contracts
Web3:
1) Decentralization,
2) User ownership
Relevant technologies and assets:
1) None Fungible Tokens (NFTs),
2) Real World Assets,
3) Cryptocurrencies Especaiily Utility Tokens
4) Decentralized applications—dApps.
II. Potential Use Cases
Specific areas within Cyesha Coffee’s operations, local, regional and global coffee sector
where Web3 and the metaverse and blockchain will offer tangible benefits:
- Supply Chain Transparency: Tracking coffee beans from farm to consumer.
- Traceability: Providing consumers with verifiable information about the origin and journey of their coffee.
- Fair Trade and Farmer Empowerment: Directly supporting farmers and ensuring fair compensation by minimizing or eradicating exploitative middlemen.
- Community Building: Engaging customers and building a loyal community around the brand.
- Unique Product Offerings: Creating digital assets (e.g., NFTs) linked to physical coffee.
- Loyalty Programs: Implementing token-based loyalty rewards.
III. Objectives and Goals
Objective 1: Enhance Supply Chain Transparency and Traceability:
Implementing a blockchain-based system to track coffee beans from origin to consumer, providing verifiable data on sourcing, processing, and quality.
Objective 2: Improve Coffee Consumers, Coffee Farmers Engagement and Build Community:
Establishing a Metaverse presence where customers can interact with the Cyesha Coffee brand, learn about its origins, and connect with other coffee enthusiasts.
Utilize Web3 technologies (e.g., NFTs) to create a loyalty program that rewards Coffee Consumers, Coffee Farmers and fosters a sense of ownership and community.
Objective 3: Create New Revenue Streams and Business Models:
Creating opportunities for selling virtual coffee products or experiences within the Metaverse.
Enhancing the potential of fractionalizing ownership of coffee assets (e.g., farms, processing equipment) through blockchain-based tokens.
Objective 4: Increase Operational Efficiency and Reduce Costs:
Leverage blockchain for secure and efficient management of contracts and payments with farmers and suppliers.
Explore the use of Web3-enabled data analytics for optimizing logistics and inventory management.
Objective 5: Strengthen Brand Authenticity and Trust:
Utilize blockchain’s immutability to provide verifiable proof of ethical sourcing and sustainable practices.
Offer transparent access to data related to coffee quality and environmental impact through Web3 interfaces.
IV. Feasibility and Resources
Cyesha Coffee Ltd will hire blockchain developers and establish a partnership with a specialized firm.
Adequate financial investment to involve in development, infrastructure, and ongoing maintenance will be secured.
Thorough assessment for the potential impact on existing workflows and processes will be done.
Phase 2: Proof of Concept and Pilot Project (Testing the Waters)
I. Specific Use Case for a Pilot
At first, Cyesha Coffee Ltd will implement a small, manageable project to test the feasibility and effectiveness of Web3, Metaverse, and blockchain integration. For example, focus on tracking a specific batch of coffee beans.
II. Appropriate Blockchain Platform
Researching different blockchain platforms (e.g., Ethereum, Polygon, Solana, Hyperledger Fabric) based on Cyesha’s chosen use case, considering factors like scalability, transaction fees, and security, will be done.
III. Development of a Minimum Viable Product (MVP)
Prototype a basic Cyeha Coffee Ltd Web3, metaverse, or blockchain solution to assess its fundamental capabilities.
This will involve:
A system for recording key data points about the coffee’s journey onto a blockchain.
A simple interface for stakeholders to view this information.
A basic smart contract to manage the data or transactions.
IV. Conduction of a Pilot Program
Implementation of the MVP with a limited scope will involve a small group of farmers, processors, or customers.
Gathering the feedback and data on the performance, usability, and impact of the solution.
Phase 3: Development and Implementation (Scaling the Solution)
I. Refining the Solution Based on Pilot Feedback
Iterating MVP based on the learnings from the pilot program by addressing any technical issues, usability challenges, or areas for improvement.
II. Building the Full-Scale Web3, Metaverse/Blockchain Application
Development of a complete solution with all the desired features and functionalities. This will involve:
Developing more complex smart contracts and platforms to connect coffee farmers directly with consumers, bypassing exploitative middlemen and fostering
decentralization
Building user-friendly interfaces (potentially as a decentralized application) and integrating with existing Cyesha Coffee systems.
Implementing robust security measures
Comply with legal and regulatory aspects: Comply with any relevant laws and regulations related to blockchain, data privacy, and digital assets locally, regionally, and globally.
III. Establishment of Partnerships
Cyesha Coffee Ltd will collaborate with technology providers such as Alchemy, Binance, Atlendis, Goldfinch Remix, TrueFi, Clear Pool, blockchain developers, and potentially other stakeholders in the coffee industry locally and internationally to ensure the implementation of this project.
Phase 4: Deployment and Growth (Making it Accessible)
I. Deployment of the Solution
Launch of Cyesha Coffee Web3, metaverse, and blockchain application or platform to the global coffee lovers and enthusiasts.
II. Education for the Stakeholders
Provision of clear and accessible information to farmers, employees, partners, and customers on how to use and benefit from the new system will be done.
III. Marketing and Communication
A unique communication of the value proposition of Cyesha Coffee Ltd Web3, Metaverse, and blockchain integration to customers (e.g., transparency, ethical sourcing) will be done.
IV. Continuous Monitoring and Improvement
Tracking the performance of Cyesha Coffee LTD’s solution, gathering ongoing feedback, and making necessary updates and improvements.
V. Specific Considerations
Infrastructure: Cyesha Coffee ltd will build and enhance the existing technological infrastructure in the coffee-growing regions and ensure the chosen solution is accessible to farmers.
Digital Literacy: Cyesha Coffee Ltd will provide adequate training and support to ensure farmers and other stakeholders can effectively use the new technologies.
Local, regional and global Partnerships: Cyesha Coffee will explore collaborations with Local (Rwandan), regional and global tech companies, government initiatives, and agricultural organizations to ensure the implementation of this project.
Focus on Impact: Cyesha Coffee Ltd will focus to using Web3 and blockchain to contribute to fair coffee trade practices, farmer empowerment, and the sustainability of the Local (Rwandan), regional and global coffee industry.