Increase Trust and Reduce Transaction Costs with the Next-Generation Blockchain Payment Solution
TraDove then takes that trust one step further with blockchain-based credit scoring. In order to provide the best experience for members’ B2B transactions, we are implementing a next-generation blockchain dedicated solely to B2B transactions, allowing us to ensure the needed security and desired privacy that existing node- transparent blockchains cannot provide, all built on a lightweight network.
Examining the payment process in the B2B space today, trust is still a tricky proposition. Now, just as countless decades before, this trust is gained through a letter of credit. There is no part of this process that is convenient. Letters of credit are time-intensive, paperwork-intensive, and they are expensive. Add to that, in much of the developing world; and for SMEs, the banking system to implement such a trade may not even exist.
Now, throw all that away and replace it with a metaphorical handshake and a smart contract. No expensive letters of credit. No time wasted on unnecessary paperwork. And most importantly, all transactions are free or low cost to the users.
This is TraDove’s contribution to the blockchain and B2B world. Members who have already connected can proceed to trade via a stable 1:1 pegged blockchain token transaction. Unlike traditional blockchain tokens, such as Bitcoin or Ethereum, this stable payment token is, and will always be, pegged 1:1 against major currencies, beginning with USD and EUR. These tokens are guaranteed liquidity by TraDove and its banking partners for buyers or sellers to trade back for their equivalent fiat at any time.
A buyer can pay his supplier, who can turn around and exchange those 1000 tokens for USD 1000 cash in hand. However, as circulation increases, and more businesses begin adopting, paying in, and accepting the token, the motivation for immediately selling them off for fiat diminishes. Buyers can pay their suppliers and those suppliers can then pay their own suppliers with the peace of mind that, at any point, they can exchange the tokens back for the exact amount that was put into the ecosystem. At that time, those payment tokens are burned from the ecosystem.