There have been a lot of delay and problem associated with the banking industry for a long time now, there are numerous of them that seek prompt attention.

For a long time now there are about over $43trillion invoices sitting in companies’ balance sheet waiting to be paid but are delays because financial institutions can only cater for just $3trillion a day which leaves a huge gap to be filled.

There are lack of liquidity and this can be detrimental to a sellers’ short term cash flow especially for small and medium enterprises (SMEs)

PAST SOLUTION

The financial Technology (Fun Tech) companies comes up with solutions to this gap in the global trade finance. However, the absence of new instruments and market place that connect and bring together different trade actors, new ventures have been unable to make a major difference.

The gaps is due to

Absence of trust and cooperation between banks
Limited transparency due to lack of reliable data points along the trade finance value chain
Bureaucracy and endless paperwork.

These and many more have been the problem confronting the banking system hence Traxia ecosystem comes up with a blockchain that will allow those short term assets to be digitized, tokenized and tradable in a decentralized market.

HOW TRAXIA PLAN TO SOLVE THE PROBLEM

Traxia aim to establish an open and decentralized ecosystem to improve trade finance globally by combining blockchain and an open, connected IT architecture to create a new ecosystem for trade finance.

The uncertainty about where physical goods are can be eliminated by the tracking of goods through modern internet of Things (IOT)

The blockchain will help in eliminating the problem associated with human error caused by manual work by helping to verify identity and ownership and could conceivably simplify compliance and governance.

SMARTCONTRACT

Trade finance platform that operates through smart contract running on a blockchain is used by Traxia to hold information such as volume and duration of an underlying trade. Traxia is also a tool to model and automate business processes to save time, cost and generate a higher efficiency for cooperates along the respective supply chains.

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