The problem KulimaChain solves

The project is a decentralized application that offers crop insurance for farmers during flood/ drought, allows the farmers to tokenize their land and sell the shares to whitelisted investors on the platform. The dapp also uses Avalanche Kenya Shilling (pegged 1:1 with Kenya Shilling) stablecoin for payments protecting Farmers and Investors from crypto market volatility.
The payouts are triggered automatically based on the data fetched using Chainlink functions ensuring smooth payment to farmers. Farmers purchase crop insurance and receive payouts in AKS (Avalanche Kenya Shilling) stablecoins.
The tokenization system is unique as it applies a proxy token system. In this system, the land is tokenized into NFT which are locked and used to mint erc3643 tokens which are tradable and have a dynamic token name and symbol. The proxy contract utilizes erc3643 t-rex framework to ensure legal, KYC/AML.
The tokenization system also provides endpoints for integration of real-world authorities and government for verification of land ownership by verifying titles deed ownership, land size and other relevant uploaded documents before tokenization ensuring trust and confidence in investors.
The tokenization system also locks 10% shares of the land NFT to ensure the land cannot be sold entirely on-chain and prevent corporate land-grabbing. It also has a 'buy-back intent' feature enabling the farmer to regain total ownership of the land. The shared images illustrate the flow of the tokenization process.
This dapp offers farmers better and safer insurance alternative, access to investment capital instead of losing entire farm to bad loans, and opportunity to participate in global DeFi markets.
Investors acquire fractional ownership of land-backed asset with real asset appreciation, asset diversification and access to impact investment.
Overall, the project mainly targets farmers in developing countries like in the African continent, increasing user adoption into the DeFi space and provide opportunities for young farmers. Thus the prioritization of a mobile-first design for the user interface.

Challenges I ran into

• I had a challenge coming up with the best way to tokenize land, trade the tokens easily and still utilize the erc3643 t-rex framework for compliance and AML. Therefore, i opted to implement the proxy token system.
• I also had a challenge on how best to verify land existence and ownership, therefore opted to implement a GovernmentRegistry contract to onboard relevant real-world authorities while maintaining decentralization and ensuring trust. The contract onboards land authorities and governments through partnership.