TRAXIA – A BLOCKCHAIN SOLUTION TO DISRUPT TRADE FINANCE

hongphong123 (25)in #traxia • 7 years ago (edited)

When we integrate into the globalization on over the world, we have no limit to access to everything. Nowadays, we can make a lot of deals through the international network. It is required the safest method of payment that ensures our money and products are transferred to the right person by the right way.

TRAXIA has been born to meet that people’s need.

WHAT IS TRAXIA?

TRAXIA is a decentralized trade finance ecosystem. TRAXIA uses blockchain technology in resolving many problems in traditional trade finance, including in actors, objects, terms, factoring, letter of credit, supply chain finance, securitization,…

TRAXIA help you to create a new trade finance platform what operates through smart contracts running on a blockchain. A lot of information such as volume and duration of an underlying trade are held in these smart contracts. At the same time, these smart contracts also become interoperable with existing Enterprise Resource Planning (ERP) Systems, Payment Networks such as SWIFT, and others. Also, TRAXIA is a tool to model and automate business processes to save time, costs and generate a higher efficiency for corporates along their respective supply chains.

In a nutshell, TRAXIA’s model can solve the information asymmetry between actors within the supply chain and financial institutions providing cash liquidity by making the supply chain actors part of the financial supply chain. Therefore, Buyers and Sellers – two parties of the financial supply chain - can make the smart contracts by using TRAXIA technology.

DETAIL OF TRAXIA

1. For Actors.

In TRAXIA ecosystem, actors are including Sellers, Buyers, Investors, Issuing Providers, Listing Providers, Loan Warehousing.

Seller is a company offering a product for sale. In the TRAXIA ecosystem, Sellers – usually SMEs - also represent the party that is looking to improve its cash liquidity and jointly with the Buyer, looking to issue a smart contract representing a trade obligation.
Buyer is a company purchasing the product. In the TRAXIA ecosystem, Buyers – often large corporation – can reduce the risk for the investor based on the better credits.
An Investor is a person or an organization that puts money into financial products, assets, ... with the expectation of achieving a profit.
Issuing Provider is a new concept that is created by TRAXIA to call the technology provider that setups and maintains the TRAXIA platform. Issuing providers will set up and maintains the technical infrastructure to gather information relevant for issuing the smart contract; guide Buyers and Sellers through a due diligence process; take necessary technical precautions in terms of data safety; implement the public key.
Listing Provider is a marketplace that matches investors of securities with listed and unlisted securities.
Loan Warehousing is the initial process of acquiring debt from various sources. In other words, Loan Warehousing stored debts that arise from B2B trade transactions that do not “find” an immediate Liquidity Provider.
At present, LiqEase – a technology company - is providing the services of Listing and Issuing to interested Buyers and Sellers to access the TRAXIA ecosystem. For establishing the basis of the TRAXIA Ecosystem, LiqEase, as well as TRAXIA, are therefore entitled to a share of the overall proceeds as illustrated above.

2. Which advantages does TRAXIA Platform bring to Trade finance?

The TRAXIA platform creates more transparency within a supply chain by integrating smart contracts into business processes and is creating the basis for Buyers and Sellers in a B2B trade to become active participants in supply chain finance, hence improving the information symmetry between the supply chain and capital markets. Higher information transparency among actors increases the likelihood that financing can be provided for an asset that is issued by a Seller or Buyer.

3. Development Roadmap

TRAXIA plan a clear development Roadmap with 4 suitable periods in 2018. In every period, TRAXIA platform is set a list of necessary things to be done to achieve its goals.

.4. Human resources

As mentioned, the LiqEase is the core team of TRAXIA platform. They hold deep expertise in launching and executing digital projects successfully both independently and for large corporations. This team has a variety of knowledge in various disciplines such as digital platforms, payments, FIN-TECH, supply chain management, software engineering and more.

5. Risk

Besides a lot of conveniences, TRAXIA also involves various risks. The largest risk that Traxia Foundation may not be able to launch its operations, and develop its blockchain and provide the services promised. Therefore, it is necessary to be careful and get advice from the master about finance before buying every TRAXIA token.

CONCLUSION

I have already discussed about TRAXIA platform’s advantages and risks. However, TRAXIA platform is generally a great application for trade finance. It allows you make many safe deals oversea and help the finance department of any corporation simply process cash flows.