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Morpheus.Network is a supply Chain,Decentralized founded in 2016 by Danny Weinberger.

Morpheus.Network was built to make logistics easier using blockchain technology. Combining the most brilliant minds in global trade, information security, blockchain, and artificial intelligence, Morpheus.Network aims to fix the inefficiencies that the World Economic Forum has identified in a $15 trillion USD industry.

Morpheus.Network (MRPH) - supply chain automation

Morpheus.Network is a SaaS (software as a service) middleware platform that aims to streamline and automate supply chains. We use technologies such as the Internet of Things (IoT) to digitize supply chain events, distributed ledger technology (DLT) to create a layer of trust in data, artificial intelligence and machine learning (AI/ML) to automate supply chain events.

Global food logistics is a multi-billion dollar market. In fact, according to leading market research firm IMACR, the market value of global food logistics is expected to reach $162 billion by 2024, representing a healthy CAGR of 8.3% over 5 years.

However, the industry has been held back for some time by fragmented processes and outdated practices. Manual documentation and payment processes, lack of end-to-end tracking systems, and manual inventory management are just some of the many challenges. This, in turn, has led to numerous inefficiencies and, at worst, fraud.

Taken together, this is clear evidence that the food supply chain industry must evolve through digital transformation. However, before we dive into tackling specific food supply chain challenges, let's take a look at how digitalization can positively impact the global food logistics industry.

How can digitalization of the supply chain affect the food supply chain?

One of the biggest challenges facing the food logistics industry today is making informed, real-time decisions as part of the ongoing move towards predictive analytics. However, real-time decision making requires real-time data that can help improve forecasting accuracy, transportation efficiency, product tracking and traceability, and product return analysis.

In addition, the real-time data collection made possible by the Internet of Things, geo-tracking and RFID is enabling transparency across the entire food supply chain like never before. This data-driven supply chain visibility allows manufacturers to truly focus on core business issues - improving customer experience, competitiveness and improving profitability - without having to worry about the constant manual oversight that legacy infrastructure and systems often require.

Morpheus.Network Solutions for Food Supply Chain Challenges

Morpheus.Network plays a key role in providing solutions to solve food supply chain problems. As a SaaS platform middleware using state-of-the-art technologies such as blockchains, IoT and AI/ML deployment, Morpheus.Network can be easily integrated into existing legacy systems.

Some of the platform's core strengths, such as digitizing physical documentation and enabling more efficient payments through automation, will directly help address many of the key challenges facing the global food supply chain industry today.

How does Morpheus.Network address the lack of traceability and transparency in the food supply chain?

Morpheus.Network uses GPS or IoT geofencing triggers, RFID, geo-tracking or QR code scanning to provide end-to-end tracking solutions for the food supply chain. In addition, the platform uses a number of APIs from reputable logistics providers, including but not limited to DHL, FedEx, and DB Schenker, to improve tracking levels. The DLT layer on the backend of the platform stores the transaction history and timestamps of all events, as well as other important data.

DLT (Distributed Ledger Technology) is one of the most advanced technologies in terms of providing complete and secure proof of origin.

As highlighted above, the lack of end-to-end transparency in global food supply chains can leave room for inefficiencies and fraud. Leveraging the immutable nature of the datasets stored in the DLT means that full end-to-end transparency is achieved as well as a secure audit trail. From using ERP data at manufacturing sites, to monitoring and integrating tracking in transit, all the way to automating document processing and real-time payments from customers, the vision of a fully automated food supply chain is now a very real prospect.

How does Morpheus.Network integrate and automate fragmented and manual documentation processes in food logistics?

Fragmented processes and operations in the food supply chain have created gaps in various food logistics workflows. Morpheus.Network uses DLT and blockchain technology agnostic technologies to integrate multiple fragmented food supply chain workflow processes. As a blockchain agnostic platform, Morpheus.Network provides the much-needed flexibility to interoperate with different types of DLT networks (private, public or consortium), so it can be used by multiple parties in the supply chain at the same time, even if they individually use different technologies and systems.

In addition, Morpheus.Network uses smart contracts to solve common problems caused by manual documentation. The backend of the DLT platform supports a unique system that allows you to quickly and easily create documents and share them between the parties involved. This replaces traditionally tedious and time-consuming document processing practices while improving security without sacrificing compliance.

How does Morpheus.Network automate payment and dispute resolution processes in the food supply chain?

Morpheus.Network solves this problem by replacing manual payment processes with pre-installed trigger-based payment systems through an integrated SWIFT interface. The SWIFT module allows end users to make payments in fiat currencies at transfer points. However, to reduce transaction fees and the time it takes to invest in international money exchange, payments can be processed in digital currencies on the server.

In addition, the storage of datasets at the DLT backend, along with predefined triggers, ensures that any disputes are resolved smoothly and automatically, as the responsibility for each event in the payment process is assigned by the system to the relevant parties involved. This leads to accountability, transparency and impartial decision-making by every party throughout the food supply chain.

How does Morpheus.Network solve the problems of inventory management in warehouses and stores in the food supply chain?

Incorrect inventory management in food warehouses and stores can lead to significant loss of time and money. To solve this problem, Morpheus.Network uses artificial intelligence and machine learning algorithms to automate inventory-related business processes such as warehousing to optimize inventory levels, reorder, reduce waste, or reduce lead times.

How does Morpheus.Network solve the problems associated with high switching costs and disruption of established processes?

The Morpheus.Network platform is fully compatible with new technologies and existing solutions. Datasets from different sides of the workflow can run synchronously when an event is fired. Using a modular architecture allows for easy integration into existing ERP or other legacy systems without having to overhaul the entire IT architecture. Thus, the cost of switching and disruption of established processes for companies is minimized.

Token functionality and scaling Morpheus.Network

Morpheus.Network was developed as a decentralized middleware that allows companies to digitize, streamline and automate supply chain workflows.

The platform creates a digital representation of the supply chain, turning information into actionable data and notarizing actions and events, as well as completing supply chain processes using distributed ledger technology. Here are some examples to make this concept clearer:

-Sensor data commonly found in Internet of Things (IoT) applications: Using temperature sensor data in cold food chains to ensure compliance from production to shelf and implement warning systems throughout the supply chain. Also tracks accountability based on transaction timestamps (such as transfer points) that can be used to automate insurance claims.

-Document processing system. Hand-crafted and signed documents (eg bill of lading, special documents) can now be digitized using advanced technologies such as OCR and digital signatures. This allows all parties to implement automatic cross-checks of documents in workflows.

In any document supply chain workflow, there are a number of intermediate transactions, sometimes the workflow also includes transactions that deal with different systems and possibly different blockchain protocols. This requires a common middleware platform.

The use of a decentralized consensus platform and notarization creates trust and settlement of transactions between multiple parties - we call this an immutable level of data trust. Leveraging the immutable nature of DLTs, agreements and exchanges between parties are recorded using actionable datasets and predetermined conditions (think of these as “if (…) then (…)” contractual agreements).

To automate and digitize processes, we use an event trigger architecture based on smart contracts. The parties involved can pre-determine the conditions that must be met to advance to the next executable step in the supply chain, which can be payments, tracking, or sensor data such as cold chain temperature. Each step in the supply chain is an event that Morpheus.Network can automate based on actionable datasets created. Previously, manual information and processes were converted into automated actions digitally. This is where the MRPH token comes into play.

Morpheus.Network provides an interface that allows the user to customize the supply chain workflow using custom modules. Modules represent steps in the supply chain, such as document created/signed, delivery of goods, or payments. When modules are executed, they use predefined event conditions to check for completion and start the next module. We achieve this level of automation with smart contracts, using the MRPH token as fuel to power the modules. All actions, smart contracts, and completed modules are recorded on the Ethereum blockchain to create a single source of truth for the parties involved.

When a user initiates a contract/workflow, a proportional amount of fees in MRPH is set aside for notarization and validation of completed workflow modules. The notarization network uses the main Ethereum network, which is the main blockchain that the Morpheus.Network platform uses. Ethereum was chosen based on its natural ability to process smart contracts and the fact that it is one of the most secure and widely accepted decentralized networks.

In our quest to provide a unified layer of communication between different systems and blockchain protocols, Morpheus.Network provides an abstraction layer that uses several different and disparate platforms in one place. When the workflow is completed, the data is notarized on the mainnet for all steps related to a particular contract/workflow using Ethereum gas (the native transaction fee on the Ethereum network). The MRPH reserved fee will cover the cost of hashing gas, the remaining amount will be transferred to the platform wallet.

From the user's point of view, MRPH tokens are used to “pay for” two key functions of the platform: firstly, automating processes that previously had to be done manually, thus saving time and money. Second, notarization of all transactions/datasets in an immutable ledger for all parties to create a single source of truth. The platform creates an immutable digital footprint for every workflow.


Our SaaS-based pricing model is volume-based and varies between clients based on required features and various third-party integrations. In order to achieve full notarization of all supply chain activity, every time Morpheus.Network writes to the main Ethereum network, a gas fee is charged and therefore the MRPH must be reserved to cover transaction fees.

Using blockchain to notarize data can become costly when data such as IoT geolocation or cargo temperature needs to be notarized. With a number of intermediate transactions coming from various devices and systems (that drive the digital transformation process), and due to the inherent nature of the blockchain to notarize all transactions, transaction throughput is rapidly accumulating. For a single company averaging 20 to 25 workflows per day, the estimated number of intermediate transactions easily ends up at around 7,500 transactions per day.

The main Ethereum network can process about 15 transactions per second, which is about 1,300,000 maximum transactions per day. The network currently averages about 900,000 transactions per day. Fifty companies using Morpheus.Network will require 375,000 transactions per day. Added to this is also a large number of other DApps that compete for access to the main Ethereum network. With over 500 active DApps at any given time, there is reason to be concerned about core network congestion, even if you don't consider transactions triggered by the Morpheus.Network platform itself. If these transactions are published for notarization directly on the Ethereum mainnet, there could potentially be a huge backlog and bottleneck effect. Gas prices are also rising as as the network gets busier. In return, the cost and performance of the middleware service platform may also suffer greatly. An example will give more information:

Calculation example with all transactions performed on the main Ethereum network:

7,500 transactions per user (company) per day. Calculated as 25 worker processes (x) 20 modules (x) 5 documents per module (x) 3 API calls/transactions per document.

Ethereum gas transaction fee of $900 per day per user (company). Calculated as avg. $0.06. gas fee per transaction (x) 7,500 transactions per day (x) 2 read and write.

This means that the company (user) will have to spend $900 per day to notarize all transactions on the main Ethereum network (in an ideal scenario where it does not compete with other DApps for access). Unfortunately, as Ethereum gas costs scale linearly, these costs will add up to nearly $1 million per day as 1,000 companies (users) actively notarize data on the mainnet.

When all transactions are verified by all nodes on the main network, the platform is inefficient and dependency increases. In addition, it becomes more difficult to control the confidentiality of sensitive data and facilitate access to notarized data verification. This leads to a structure where centralized governance needs to be introduced, resulting in a hybrid public/private blockchain structure.

Morpheus.Network has developed a solution to reduce transaction costs without compromising the security and trust of notary services using a layered/sidechain approach. The goal is to reduce the burden and cost of using blockchain on a large scale.

To implement the concept, masternodes will be created as local validators at the second layer (also known as sidechain) as a separate ecosystem comparable to an intranet. The notarized certificate (transaction hashes) from the side chain transactions will be combined and recorded as one transaction on the main network.

Without master nodes (or side chains), Morpheus.Network customers will face serious problems with main network congestion and thus slowing down or completely stopping the company's entire supply chain. This, of course, is in addition to the huge increase in costs associated with hashing all supply chain transactions on the Ethereum mainnet. The result will be wasteful costs when scaling and an accumulation of transactions that cannot be processed.

Morpheus.Network has developed a layered platform that allows the abstraction of various blockchain protocols, allowing users to take advantage of the strengths of these blockchain protocols and other systems to use the necessary transaction data in one place.

The multi-level platform Morpheus.Network is an open API that allows you to:

-The user (system architect or developer) selects the main chain and side chain, thus providing the flexibility to optimize the processing required based on the business process.

-Control remains with the DApp developer within the ecosystem to customize how processing should take place in the sidechain. Processes can be configured to instantly extract data from a node in the block chain, or compress data in batch mode or based on a gas fee (or equivalent block chain unit), depending on the needs of the application.

-The goal is to give the user full flexibility and control over the process.

In practice, the supply chain workflow can be set up as follows:

-The sidechain is the main node running the private Ethereum blockchain. Multiple side chains can combine to create a chain link, interacting for computation and storage. As the main node, the sidechain has no gas costs or transaction settlement delays (compared to the main network).

-From the completed workflow, the data to be notarized is transferred to asymmetric encryption, and then the data is hashed for writing on the side chain using lossless compression techniques to reduce the amount of data. A link to this notarization is returned by the owner and can be shared with other interested parties as a notarized certificate. -Morpheus.Network integrates an API to validate data with a certificate (transaction hash obtained in the previous step) to decrypt and compare the hash.

-A supply chain management DApp built on Ethereum involves smart contract execution including multiple workflow steps such as RFID scanning, QR code scanning, geotagging, or IoT triggers. All data at each stage is encrypted, hashed, compressed and notarized in the sidechain. This approach avoids transaction costs and ensures optimal performance. The final publication of the completion of the workflow and all nested steps will be recorded on the Ethereum mainnet blockchain.

It should be noted that sidechains do not have to run on the Ethereum network. Depending on the needs of the client, other networks may be used that are more optimized for privacy (with permissions) or bandwidth. In this scenario, the main Ethereum network is used only as a notarization layer for final verification.

The MRPH token is once again the fuel for all transactions and smart contracts, enabling step automation and data notarization. In other words, the user is not required to make any changes to the architecture from the previous setup.

Calculation example with implemented Morpheus.Network sidechains:

7500 transactions per user (company) per day. Calculated as 25 worker processes (x) 20 modules (x) 5 documents per module (x) 3 API calls/transactions per document.

Since all platform transactions take place on the side chain, the number of transactions required on the main Ethereum network is greatly reduced, with each company only costing a few dollars a day in gas fees to notarize, compared to the $900 figure mentioned above.

Using a private sidechain and implementing a master node for notarization for a single company (user) costs much less per day (several dollars on average) compared to $900.00 per day, with all transactions notarized directly on the main network. The true impact becomes apparent as more companies (users) use Morpheus.Network services. Instead of accumulating transaction costs to almost $1 million a day with 1,000 companies (users) as before, they will only be a few thousand dollars a day.

A large number of master nodes must be deployed, and depending on the actual business processes of the supply chain, the transaction quota in the side chains and the main network may not always be the same. The numbers above are only used to illustrate the benefits of Morpheus.Network's layered approach.

Blockchain comes to the fore in the Department of Homeland Security's war on counterfeiting

The benefits of blockchain technology are being recognized by various government departments around the world, most recently the US Department of Homeland Security, which currently manages POCs using decentralized ledger technology to protect intellectual property.

According to a recent report, more than 40% of goods available in major Chinese online stores are counterfeit, and a significant proportion of such goods are allegedly imported into the US in circumvention of US trademark laws. The list of such illegal products is long and includes iPhone clones, toys, pesticides, and even pharmaceuticals, which can have detrimental effects on public health due to the lack of transparency and accountability of the manufacturers of such products, which are OEMs. The US Department of Homeland Security Blockchain Experiment is expected to come up with a Proof of Concept solution for this problem.

While manufacturers of counterfeit goods can make a handsome fortune by copying some of the well-established products, they are far behind the actual manufacturers. In terms of cost, there is a huge threat not only to the health and well-being of customers. buying such products for the real deal, but also for real brands that are being copied. The lack of quality control and guarantees inherent in counterfeiters leads to poor quality and defective products, which in turn damages the reputation of the brand. In addition, it exposes them to legal liability due to confusion resulting in wasted time and resources for both companies and consumers. In the context of the United States of America, it is established that

Blockchain to the rescue

Noam Eppel, co-founder of one such Morpheus.Network solution, states:

“A unique aspect of our platform is that it is blockchain agnostic, which means you don’t have to be tied to a single blockchain. We provide supply chain managers with a digital footprint that provides visibility into shipping and goods to automate safe and reliable supply chains while saving time and money.”

Morpheus.Network, at the request of the American customs brokerage firm Customs Direct, is participating in a pilot project of the US Customs and Border Patrol blockchain project to combat counterfeiting. The project has already demonstrated its effectiveness, as stated by another co-founder of the platform and supply chain expert Dan Weinberger, who said:

“We are addressing the direct inefficiencies in global trade that led us to these CBP intellectual property rights. (IPR) Proof of Concept.

Through the implementation of sidechains, effective transaction costs can be reduced to a minimum, removing the problem of linearly scaling fees in the main network. The linking mechanism allows the sharing of operational costs among users, ultimately reducing costs through more active users implementing sidechains / master nodes and using the platform. As such, it provides a robust solution for economically scaling a solution without compromising data security or trust.

Some of the core features offered by our platform include tracking, visibility, fraud detection and prevention, document digitization and automation, manual and workflow automation, and digital footprint creation to ensure an unalterable record of events.

How Morpheus.Network uses DLT

While many supply chain solutions rely on proprietary blockchains to provide vendor lock-in, our platform is blockchain agnostic. We are currently integrated with Ethereum, EOS and Hyperledger and we will continue to work in the near future. This allows us to use the right blockchain solutions depending on the client's requirements.

Flexibility allows you to securely share data; private data stored in allowed chains while public datasets are stored in public chains.

The modular architecture of Morpheus.Network offers great flexibility and can be easily integrated into all verticals, regardless of the nature of the underlying industry. So far, Morpheus.Network has served a variety of industries such as supplying FMCG to retail markets, international vehicle exports and imports, oil and other fuels import/export, medical equipment and drug supply, and cross-border food supply.

Key benefits of our tech stack:

-Blockchain Agnostic works so easily with any underlying blockchain system.

-Can be easily integrated with other tech stacks.

-The modular architecture is easily customizable to individual needs.

-Implementation costs are minimal and do not disrupt ongoing business activities.

-Flexible implementation allows you to install only the necessary modules.

-All three levels of the supply chain - physical, documentation and payment - can be digitized and automated.

-Does not limit companies to a single DLT architecture.

-All layers can be holistically combined into a data layer to implement AI and ML functions, saving time and money.

Morpheus.Network in the food chain: a case study

Morpheus.Network creates a complete supply chain system where retail stores at one end can know the origin of any food they receive. This is achieved by fully digitizing supply chain documentation, automating the process with triggers, and using the Internet of Things to collect critical data in real time. The solution is customized depending on the type of food industry. For example, some perishable products require a cold chain.

The Morpheus.Network tech stack brings together datasets provided by different parties in the supply chain, which are later automatically pushed forward. For example, a production data set can be routed to the other end where quality control and compliance can be enforced.

Morpheus.Network connects to over 100 third party systems such as FedEx, DHL, UPS, etc. Location tracking and timestamps of all events ensure complete origin of the entire supply chain. This makes it easy to resolve any future disagreements. Any company can use this opportunity to solve such problems.

For example, consider a batch in the cold chain that is spoiled on delivery to its final destination. By checking temperature logs at various points, along with any triggered temperature warnings, it's easy to spot who faltered.

Even with the Internet of Things, one problem remains: network connectivity. Goods may often move through areas with low or no Internet connectivity, or some other connection failure may occur. This may compromise the integrity of the information on which our supply chain model is based. The problem cannot yet be solved at the physical level, so Morpheus.Network creates a solution at the application level.

The data streams are collected by Morpheus.Network and used to create an early warning system with various presets. In critical supply chains such as cold chains, this system serves as a safety net, a secondary layer of information if the former is not reliable enough.

An early warning system may work if the data entered into it is insufficient or consistent; a warning warns interested parties that the sensor readings need to be monitored in another way. In addition, automatic triggers can also be placed - for example, ordering a follow-up check at the next checkpoint, or canceling an order and seeking full compensation.

Morpheus.Network is committed to creating unique and customizable solutions to the challenges faced by supply chains across all verticals. Transparent, seamless, automated and insightful is the future of supply chains we dream of.



Further Resources


A New Leap for Morpheus.Network: Bittrex International Listing



September 5, 2019



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