Cross-border trades keep showing positive signs of growth. It is worth mentioning that the growth of international trades facilitates relevant infrastructures we have around us today. From drinking-water through sanitation and down to electricity, global trades is the major medium of gathering finance for such projects.
On the flip side, there is a massive decline in the effective provision of these basic amenities. It is ironical that despite the continuous growth of international trades, which has an annual growth rate of 4.3%, many countries are yet to offer the citizenry the best of amenities. This is not mainly because of the government’s inefficiency. A greater bulk of the problem took root from the core participants in such trades.
Introducing the TradeFinex Platform
This platform is a decentralized marketplace working on the premise of XinFin’s distributed ledger technology. XinFin is a blockchain platform that has interest in an all-around improvement in the fortunes of global trade. The aim of instituting the TradeFinex platform is to solve underlying problems faced by the three participants in global trade – Beneficiary, Supplier, and the Financier.
Solutions for the Beneficiary
The beneficiary is the owner or initiator of a project. With the current structure of global trades, he finds it hard to access capital for the project’s execution. In the same regard, there is a tendency of coming in contact with unreliable service providers (suppliers), which can lead to a delay in the execution of the project.
On the contrary, the TradeFinex platform has a wide range of solutions that will put these malaises to an end. First, the beneficiary has access to low-interest funds. It is worth mentioning that the platform has a wide range of financiers who are willing to provide the needed funds for a project’s execution. There will be little or no delay in the project. This is because of the trustworthy suppliers that are available on the platform.
Impressive Strides for Suppliers
There is no doubt that fraud exists in international trades. Suppliers are usually at the receiving end when payments for services do not come forth. Nevertheless, that trend has a nip in the bud through the huge potentials in the TradeFinex platform.
There is a built-in escrow service powered by the mart contract technology. Just like traditional escrow services on ecommerce platforms, the supplier alerts TradeFinex on the completion of the job. This eliminates fraud and facilitates transactions between the supplier and the beneficiary.
The platform also provides visibility to suppliers who wish to expand the horizons of their services. The massive nature of the ecosystem makes it possible to bid for jobs across borders. While this brings more beneficiaries to the supplier’s doorstep, the TradeFinex platform also offers token incentives to suppliers who make use of the smart contract technology for their transactions.
Better Returns for Financiers
It is encouraging when there are enough returns on an investment (ROI). Taking into cognizance the sad fate of financiers who get low returns after investing on a project/issuing funds to beneficiaries, XinFin, through its TradeFinex platform, provides an ecosystem where financiers can derive immense returns on projects.
Now, they can enjoy real-time payment and settlement using the smart contract technology. The platform also allows them access to a large market where they can find investment opportunities. Later on, using IoT devices, financiers on the TradeFinex platform can track their investments to ascertain the performance in the delegated areas.
MILESTONES
XinFin is Facilitating Global Trades
The coverage of the three (3) players in international trades and the underlying solutions tailored after each of them is a proof that XinFin is out to improve the fortunes of cross-border trades. With the heightened public interest on the blockchain technology, the XinFin-backed commerce platform (TradeFinex) may be on the way to becoming a standard in decentralized trade activities.