The Traxia whitepaper details the players involved in the company’s process to give the potential investor an overview of how the ICO will provide market value.
Listing out each actor’s role makes it easier for the reader to understand the potential value Traxia brings to the table.
This article will focus on breaking down each actor and their part in the Traxia ecosystem.
1. Seller
Any business that offers a product or service for sale.
Traxia’s mission is to improve cash liquidity in the marketplace, and often it’s for small and medium sized enterprises (SMEs). A seller in this scenario is also the business that’s after an improvement in it’s cash liquidity by issuing a smart contract that represents the obligations of the trade, which is done either “solely or jointly with the Buyer”.
2. Buyer
The company that’s purchasing the Seller’s product or service.
The typical Buyer in the Traxia ecosystem is a larger corporation with a higher credit score than the Seller.
When investors are looking to purchase a smart contract, having a large corporation involved is favorable because of their high credit score. In general, the larger the Buyer, the higher the credit score, the more likely said Buyer is going to pay.
In turn, the smart contract credit rating is improved.
3. Investors
Any party expecting a profit by placing their money into a financial asset.
With Traxia there is an increase in trust and transparency, allowing more investors the opportunity to turn a profit.
4. Issuing Provider
Streamlines the process of utilizing blockchain technology in trade-finance.
This is where Traxia gets innovative. The concept of investing in another company’s unfilled invoice is not a new one. The process is called factoring. However, introducing blockchain to the backend of the equation prompted Traxia to create the concept of the Issuing Provider.
Running the back-end of the system means it’s “transparent to the Buyer, Seller or Investor”, except when another Actor is required to sign the transaction by use of their assigned private key.
While the Issuing Provider is mostly invisible to the Traxia user, it’s lifting the heavy weight. The other Actors involved with the Traxia ecosystem are interacting with the Issuing Provider while the Issuing Provider is tasked with maintaining the infrastructure that gathers “information relevant for issuing the smart contract on behalf of the Buyer and/or Seller representing a B2B trade”.
Buyers and Sellers will be guided “through a due diligence process” based on audits, staff passports, financial statements, etc… All necessary precautions are taken care of by the Issuing Provider, as well as public key implementation and an “encryption method to let Buyers and Sellers digitally sign their smart contract and digital asset issuing transactions.”
5. Listing Providers
The marketplace for investors of securities to match with listed and unlisted securities.
A good way to think of the Listing Provider is to envision an online exchange powered by the Issuing Provider mentioned above.
6. Loan Warehousing
Loan Warehousing is “the initial process of acquiring debt from various sources.”
“In the Traxia ecosystem, debts that arise from B2B trade transactions that do not “find” an immediate Liquidity Provider are warehoused.”
Traxia will be using Loan Warehousing for the initial time-frame required to prove the concept of the project, with decentralization being a long-term goal. Traxia believes the matching process could “become a bottleneck for the ecosystem” and plans to use Loan Warehousing to facilitate growth in the beginning stages.
To ensure accurate debt-pricing, the team plans to work with Creditsafe.
Conclusion
Traxia brings innovation to an established industry by use of blockchain technology, which is the overarching goal of blockchain tech at this stage in the game. The question is, will Traxia be the one to get the lion’s share of trade-finance’s potential? Only time will tell.
Disclaimer: As with all investments, you should do your own research. The information provided in this article is focused primarily on bringing the facts out of the white paper to supplement your due diligence. The quotations provided are from Traxia’s white paper.
Author Account
Links:
Join the presale — https://www.traxia.co/token-sale-info
Bounty Info — https://bitcointalk.org/index.php?topic=3021679.0
Telegram — https://t.me/traxiafoundation
Whitepaper (PDF)-https://docs.wixstatic.com/ugd/baba69_30f719c55f344ab7ae44715a4d287811.pdf
